Brazil should end 2022 with a reduction in extreme poverty rates. According to the Institute of Applied Economic Research (Ipea), the projection is for a fall to 4.1% this year. In 2019, Brazil had an extreme poverty rate of 5.1%.
Worldwide, the trend is the opposite. World Bank forecasts indicate that, by the end of the year, 115 million more people will be living on less than US$ 1.90 a day, as a result of the covid-19 pandemic.
“The world has been steadily reducing extreme poverty. From 2019, with the shock of the pandemic, this extreme poverty started to grow, then the world became impoverished due to covid. In Brazil, we are heading in the opposite direction of this process”, highlighted the president of the Institute of Applied Economic Research (Ipea), Erik Figueiredo, in an interview with the program Brazil on the agenda this Sunday (14), at TV Brazil.
Also according to Figueiredo, the basis for this estimate of decline is the increase in families within the Federal Government’s income transfer program, Auxílio Brazil. In all regions of the country, there was a directly proportional relationship between the families included in the program and the number of jobs created with a formal contract. According to Ipea, on average, for every thousand families included in Auxílio Brazil, 364 formal jobs are created.
“We have a very quick recovery in the job market. And we have, on the other hand, a social program being expanded with more social spending. But these two things go together, you don’t have to overcome the social condition, you help the vulnerable, without the economy growing, without you generating formal employment”, explained the president of Ipea.
During the interview, Figueiredo also explained the importance of this connection between the economy and social protection, with the coexistence between Auxílio Brazil and the growth of the job market. According to him, the combination of the two factors has favored social ascension for Brazilians in situations of vulnerability. “Before, you could not accumulate Auxílio Brazil and a formal job. So that was a barrier for people. People chose, depending on working conditions, to remain in the social program and obtain some kind of informal income. With this exit door, you can now accumulate the social program and the signed work card, you can stay in the program for two years. This made it easier for the heated job market to demand people from the informal market and Auxílio Brazil. So people are entering the job market without worrying about losing their benefit and without worrying that, when they lose their job, they have to go back to the end of the line”.
resumption of employment
According to the Continuous National Household Sample Survey (PNAD Contínua) of the Brazilian Institute of Geography and Statistics (IBGE), at the end of the first half of this year, Brazil registered 98.3 million people with some type of occupation in the market. of work. According to data released last Friday (12), the country’s unemployment rate in the second quarter of 2022 was 9.3%, falling 4.9 percentage points compared to the same period in 2021 (14.2 %).
During the interview, Erik Figueiredo addressed the matter stating that, once again, Brazil is going against the grain of the global trend. “While the world reviews its growth projections downwards, Brazil reviews its projections upwards”. And he added: “this is a very important indication of the Brazilian stance, which was to reduce the State, tax reduction during the pandemic period. So this has facilitated the economic recovery”.
Translated to english by RJ983
From Brazil, by EBC News