Small businesses ranks first in July’s job creation
Services saw the biggest expansion among micro and small firms
Published in 06/09/2021 - 15:33 By Pedro Rafael Vilela - Brasília
Of the total 316,580 new admissions effected in July, slightly more than 72 percent (229,368 formal jobs) were generated by micro and small businesses. The data come from the Support for Micro and Small Businesses Service (Sebrae), and are based on the statistics from the General Registration of the Employed and Unemployed (Novo CAGED in the original), updated monthly by the Ministry of Labor and Social Security.
Among medium and large companies, the balance of jobs generated stood at 73,694 job posts—23.3 percent of the total.
Sebrae regards as micro-businesses firms with up to nine employees in the sectors of agriculture, trade, and services. In industry, micro-businesses are those with up to 19 employees. Small companies, in turn, are those with 20 to 99 workers in the industrial sector; and 10 to 49 in agriculture, trade, and services.
Services see a recovery
Services, one of the sectors most severely hit by the COVID-19 pandemic, has shown sings of recovery and was the segment with the highest number of admissions in July.
According to a Sebrae survey, of the more than 229 thousand job openings created by micro and small companies in this period, 94.2 thousand were in services, which accounts for 42 percent of the new job posts created by small companies.
The result, Sebrae reports, confirms the trend that had been observed in the last Survey on Micro and Small Businesses, conducted monthly by the entity in collaboration with the Getulio Vargas Foundation (FGV). Among the drivers boosting the sector are the the progress of the vaccination campaign and the reduction in COVID-19 cases.
In addition to services, all other sectors of the economy showed positive results in employment generation among micro and small companies. Trade accounted for 65.8 thousand new job posts, followed by manufacture industry (36.5 thousand), construction (26.2 thousand), and agriculture (4 thousand).
Translation: Fabrício Ferreira - Edition: Lílian Beraldo / Nira Foster