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Employment in Mato Grosso(Brazil)

Popularity 1Viewed 927 times 2017-3-20 09:10 |System category:Economy| Brazil

                                                                                                 Maurício Munhoz is sociologist

How do the economic sectors contribute to the composition of the employment profile in Mato Grosso? I will use the ICSM (Index of sustainable growth of municipalities), in addition to the data from Brazilian Institute of Geography and Statistics and the Ministry of Labor, to set up a framework:
Sector%                    Formal jobs *%      GDP **%     Wages paid ***
Industry                        18.39                    17.6                   25.54
Agriculture                    13.26                    20.5                   23.28
Services and Trade        49.16                    45.9                   31.23
Public Services               19.19                    16.0                   19.95
* Signed or statutory certificate 2016 ** 2015 *** 2016

The ICSM trends study created a quality index to interpret the optimization of the numbers above, making a mathematical relationship between formal jobs and GDP / wages paid. The industry reached the ICSM 1.2 while the Agriculture and Public Services were 1.1 and Commerce and Services with 0.8. That is, the industry is the sector that most drives the formal employment of Mato Grosso in relative terms.
But as a sociologist, I could not go without trying to understand the strength of the informal economy, although there are no up-to-date official statistics on this or about unemployment in Mato Grosso.
So, we will take the total population of Mato Grosso as 3, 4 million inhabitants in 2016. Of these, there were 800 thousand people with formal employment, the population of people under 18 years of age was approximately 1 million (can not sign wallet Of work) and retirees almost 400,000.
Among the others are beneficiaries of social programs, such as the "Bolsa Família", which serves more than 490,000 people (including approximately 30% of those under 18, already counted above). Thus, workers in the informality, businessmen, students, those who are not looking for a job and the unemployed (technically unemployed are those who, not being working, had some recent attitude in search of employment).
To better understand informality, we need to talk about the high tax burden. As Mato Grosso is a state with an agribusiness profile, there is always a good reflection on the contribution of the sector. In terms of revenues (business), agribusiness accounted for 51.9% of the state's total, but only 16% of the ICMS. Commerce, on the other hand, earned 34.7% of the total and collected 60.3% of ICMS.
Of course, the burden ends up on someone's back. In Mato Grosso we live with an obsolete and absolutely punitive tax system, which, together with the weight of labor obligations, creates an environment where there is no incentive to increase investments, especially formal ones, starting with jobs.
Certainly, there is no tendency of the state to industrialize, which we have seen is the main driving force of growth. On the contrary, the figures point to a deindustrialization of Mato Grosso. With high costs such as taxes, freight and energy, and especially because of the Kandir law that does not stimulate industrialization because it does not impose taxes on exports to the "in natura" products, we have seen industries closing and others moving to neighboring states, such as Goiás or countries such as Paraguay.
And agriculture, as we have seen, is not a big employer. For more than 30 years Mato Grosso has been living with large commodities production, mainly soybeans, but with only 13.26% of the total, we can not say that the sector had a great growth in jobs.

(Opinions of the writer in this blog don't represent those of China Daily.)


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Reply Report wangbeijing 2017-3-21 01:40
I believe that the employment profile in Brazil is very similar to most of the raw material exporting countries and very different from countries like China and the United States.
As long as these exporting countries do not begin to industrialize their productions, they will not leave this rudimentary stage of their economies.
Reply Report mauriciomunhoz 2017-3-21 03:14
wangbeijing: I believe that the employment profile in Brazil is very similar to most of the raw material exporting countries and very different from countries like ...
There are many similarities between the employment profile in raw material exporting countries, starting with the non-valuation of the labor force, which is not as specialized as in industry or in high technology activities.

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