Balance of the impacts of the COVID-19 crisis on the Brazilian labor market in 2020

Abstract

This study aims to analyze the impacts of the crisis associated with the Covid-19 pandemic on the Brazilian labor market until the end of 2020. Therefore, data from PNAD Contínua are analyzed in order to identify the behavior of the labor force, the main characteristics of the jobs lost and the impacts on labor income in that period. The national labor market was strongly hit from March 2020, with a historical slump in the level of occupation. The most affected workers were those who were in informal and more flexible occupations, with a lower degree of social protection. With the contraction of the employed population and the number of hours worked, there was an intense fall in labor income, especially in the lowest salary ranges. As a result, the pandemic may have triggered the worst crisis in the history of the Brazilian labor market, with lasting impacts on employment and income levels.

Keywords:
Pandemic; Unemployment; Informality; Labor income