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The pandemic and the labor market in Brazil

Abstrac

The COVID-19 pandemic is a global public health problem that has given new dynamics to the world economy. The rapid spread of the disease and the use of social distancing as a form of prevention exposed the social and urban inequalities of capitalist cities. In Brazil, as in other countries, social distancing has promoted rapid changes in the labor market with more severe impacts for 37.3 million people living in the informal sector, as they do not have rights to, for example, the severance pay indemnity fund (FGTS) and unemployment benefit. According to the International Labour Organization, the first layoffs are occurring among those who live off precarious work, such as: outsourced workers, clerks, waiters, kitchen workers, day laborers, baggage handlers, and cleaners. We show a brief synthesis of the consequences that the health crisis has brought to Brazilian workers and propose coping measures that are not limited to emergency aid. The recovery and creation of occupations will depend, among other factors, on the resumption of spending on social and economic programs that were able to reduce social inequalities at the beginning of this century, such as PAC-favelas; Minha Casa, Minha Vida Program; Bolsa Família Program and the FAT Employment and Income Generation Program. These programs can and must be expanded to bring the economy back to growth in the long run.

Keywords:
COVID-19; economic crisis; informal work; unemployment; public policy

Fundação Getulio Vargas Fundaçãoo Getulio Vargas, Rua Jornalista Orlando Dantas, 30, CEP: 22231-010 / Rio de Janeiro-RJ Brasil, Tel.: +55 (21) 3083-2731 - Rio de Janeiro - RJ - Brazil
E-mail: rap@fgv.br