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Many bars and restaurants are expected to open job vacancies after the crisis left by Covid-19, which still causes fear of economic stagnation. Despite this, in the month of June, at least 26% of the sector ended up in red.
A Brazilian Association of Bars and Restaurants (Abrasel) published research that shows that at least 35% of all entrepreneurs who own bars and restaurants intend to open job openings to hire new professionals, as attendants and waiters, by the end of 2022, which would represent the creation of more than 100 thousand jobs, thus impacting the economy and the GDP (Gross Domestic Product).
According to the president of the entity, Paulo Solmucci, it is estimated that more than 1 million job openings in this sector have already been created in the last twelve months after the Brazilian attempt to recover from the crisis left by the Covid-19 pandemic, with the removal of the mandatory use of masks and the opening of closed spaces to different audiences.
June had one of the best results for the bar and restaurant economy, as stated by the report
The survey, which was under the responsibility of Abrasel, showed that the month of June had one of the best results for the sector, since at least 37% of businessmen registered profits above expectations, against 35% during the month of May.
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In short, despite this positive data, it is estimated that around 26% of them were in the red – mostly due to difficulties in overcoming the crisis and the high prices that impact consumption, compared to 29% of those who were in the red in May.
In addition, 37% of those interviewed stated that they ended the month of June with a balanced budget, as estimated by the cashier, considering the previous months.
With positive data, the unemployment rate shows a sharp decline and new jobs are created
Between the months of April and July, the unemployment rate in Brazil was around 9,3%, which is a considerably lower value in view of last year's rates, which reached almost 15% of the unemployed population. The increase in hiring, whether formal or informal, means that many Brazilians have the opportunity to enter the job market and stop depending on social programs such as Auxílio Brasil, created last year to supply the former Bolsa Família, which was paid by the Workers' Party (PT) government for more than a decade and a half.
The World Cup, according to the article published by CNN, brings better expectations for the recovery of the economy in Brazil, since there will be more incentives for tourism and commercialization. It's as if football matches brought more people to the streets, to celebrate victories or to follow the games with friends or work colleagues.
Abrasel claims that the sector still faces strong challenges with the high inflation that is in double digits
Abrasel shows that around 71% of entrepreneurs are facing difficulties in passing on the costs of food products to their final customers, which causes them to leave at a loss due to inflation, which is in double digits. The Brazilian government, administered by Jair Bolsonaro, has been developing strategies to control these variations, such as the increase in Selic, to 13,75% at the last meeting of the COCOM, who took place on the 03rd of August.
Despite the good expectations with the World Cup, the Senate approved the possibility for companies to release food withdrawals after 60 days for their employees, which could cause a loss greater than R$ 5 billion for bars and restaurants.
