Trade took three years to recover pre-pandemic employment levels
The survey covers 22 sectors divided into three major segments: retail trade, wholesale trade and trade in vehicles, parts and motorcycles. Retail trade, with 7.6 million jobs, continues to be the main source of employment in the sector. Wholesale trade employed 1.9 million people, the highest number in the historical series, while trade in vehicles, parts and motorcycles accounted for 846.2 thousand jobs.
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Claudemir Galvani, economist, advisor to the Federal Council of Economics and professor at the Department of Economics at PUC, explains that the increase in the number of people employed in commerce in 2022 is due, above all, to general economic growth and the increase in GDP.
“During the previous government, from 2019 to 2022, average GDP growth was 1.17% per year, with a drop of 3.9% in 2020 due to the pandemic, and a recovery to 2.9% in 2022. This economic recovery is directly reflected in the increase in employment, especially in the trade sector”, says Galvani.
He highlights that, while agriculture represents about 7% of GDP and industry 25.5%, the services and trade sector represents 67.4% of GDP. In terms of employability, agriculture represents less than 10% of total employment, while services and trade represent about 70%. However, the average salary in trade is relatively low, being around two minimum wages, with retail being even lower, around 1.75 minimum wages.
Denise Kassama, federal advisor to the Federal Economic Council, highlights that the improvement in job creation in commerce reflects the country’s overall economic recovery. She notes that the growth in Gross Domestic Product (GDP) and the increase in formal jobs have contributed to the improvement in the income of Brazilian workers.
“Brazilians can now buy or change their television, buy or change their motorcycle. It’s because their income already allows it and one thing leads to another. Consumption stimulates commerce, which stimulates industry, which generates jobs, which generates income,” he highlights.
Digital sales
Fabio Bentes, an economist at the National Confederation of Commerce of Goods, Services and Tourism (CNC), highlights the recovery of the trade sector in relation to operating revenue, which grew 68% since 2020. For him, virtual commerce helped the sector during this period.
“Therefore, in three years the sector managed to grow significantly in terms of revenue generation and this recovery in net operating revenue was mainly due to the digitalization of consumption. The number of commercial establishments selling online grew by 80% in a period in which sales in Brazilian e-commerce grew by 225%”, he reports.
The number of businesses that have adopted online platforms, including websites and social networks, jumped from 1,900 in 2019 to 3,400 in 2022, an increase of 79.2%. In terms of percentage, online retail trade grew from 4.7% to 8% between 2019 and 2022.
Joana dos Santos, 48, owns a store at the Feira Central in Ceilândia (Federal District). She explains that during the pandemic she had to adapt to continue selling products.
“During the pandemic, I received government aid, but it was well below my sales. Since businesses had to close, I had to sell online, posting on social media, such as WhatsApp and Instagram, and delivering to customers’ homes,” he recalls.
Today, she explains that most of her sales take place in the physical store, although she still uses Instagram and WhatsApp to advertise products.
Regional distribution
The research also reveals regional inequality in the trade sector. The Southeast stands out with 50.6% of employed personnel and 54.6% of total remunerations in 2022.
States such as São Paulo, Minas Gerais, Paraná, Rio Grande do Sul and Santa Catarina lead in participation in the sector.
Challenges
For the coming years, Bentes warns of the ongoing challenge posed by unfair competition from imported products, especially from Asia, and the need for government action to protect national trade.
“Brazilian commerce will have to deal with the flood of products, which comes especially from Asia to Brazil. Obviously, this requires government and public sector action to help protect trade. In these countries, these products are produced very cheaply and this ends up generating unfair competition in relation to the prices charged by Brazilian retailers,” he adds.
By Brasil 61
