Dieese: discouragement and informality are expected to increase under the Bolsonaro government.

247 - The number of discouraged workers – those who have given up looking for work after trying hard to find a job – as well as the unemployed and informal workers, which has been hitting record highs since last year, is expected to increase this year. The reason is the neoliberal economic policy of the Jair Bolsonaro (PSL/RJ) government, which has not increased the minimum wage nor shown any signs of using public banks and companies or expanding public investment in infrastructure to boost economic growth.

Adriana Marcolino, a technician at the CUT's Dieese subsection, criticizes the Bolsonaro government's decision not to extend the minimum wage valorization policy. "Policies that improve the labor market and wages, such as the Minimum Wage Valorization Policy, are important for the resumption of growth because they activate the consumer market: the extra income is used to pay debts, consume more food and clothing, and will boost the economy," she argues.

"Only this government sees the minimum wage adjustment, which has risen more than 70% since the policy was implemented, as an expense, but the money goes directly to consumption and part of it returns as revenue," he adds.

Economist César Andaku from Dieese Nacional adds: the government missed a great opportunity to improve the economy when it reduced the minimum wage adjustment – ​​one of Bolsonaro's first acts as president was to lower it from R$ 1.006,00, as planned, to R$ 998,00 – a reduction of R$ 8,00 in workers' salaries. "The smaller adjustment also affected retirees and pensioners of the INSS (National Institute of Social Security) who are often the breadwinners for their families," Andaku points out.

Economic indicators are moving sideways.

According to Andaku, the government's highly touted 2,5% economic growth forecast for this year will not impact the unemployment rate by even 1%.

He explains that economic market indicators such as industrial production, Gross Domestic Product (GDP), and retail sales 'stagnating' reveal that there is no prospect of improvement in the economy, and consequently, no job creation.

“When GDP improves, the impact on employment rates will only be felt after six to eight months, and there is nothing to indicate that it will improve. If the economy reacts, at most, it will have an impact in 2020,” says Andaku.

According to the economist, this outlook will increase discouragement because when the economy is stagnant, it generates even more distrust and demotivation. Furthermore, it could increase the number of informal workers and put downward pressure on the wages of those with formal employment contracts. "Looking for a job has a cost: transportation and eating out. It's practically impossible for someone who has been unemployed for a long time to look for work."

"And those who manage to find work," Andaku continues, "end up putting pressure on formal workers, with signed contracts, who will have greater difficulty in making up for wage losses due to the mass of people seeking a new opportunity."

* With information from CUT