In Brazil, small businesses create 70% of new jobs in July

In Brazil, micro and small businesses accounted for seven out of ten formal job openings created in July this year, maintaining the pace of job creation seen in the first six months of the year.

The survey was based on official data and was conducted by Sebrae, the country’s support service for micro and small businesses.

Small businesses showed a balance of 176.8 thousand new hirings, compared to a balance of 50.6 thousand jobs among medium and large businesses, which corresponds to 70.2 percent. The monthly average of jobs generated by small businesses since the beginning of the year is reported to have remained above 160 thousand.

Year to date, Brazil has surpassed the mark of 1.5 million jobs generated, with micro and small companies being responsible for 1.1 million (72 percent of the total). Medium and large companies, in turn, created 327,200 jobs (21%).

“As had been recorded in May and June, all sectors, across all sizes, showed positive hiring balances in July. Among micro and small companies, the three sectors that generated the most jobs remain: services (61,996), trade (34,469), and construction (30,661),” Sebrae’s note reads.

The entity celebrated the recovery in the services sector, heavily impacted by the COVID-19 pandemic: “The strong recovery in services is also seen when we consider year-to-date figures. Among small businesses, this sector alone generated almost 600 thousand jobs out of the 1.1 million created by the segment. All the small business sectors present a positive balance for job generation. Among medium and large companies, the only segment that continues displaying a negative balance is trade.”