Ibre-FGV study shows formal job openings in 2024 increased by 45.2% for women and 10.1% among men

10/21/2024

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In a scenario where women remain underrepresented in the job market, the rate of formal job creation for them in 2024 has so far been much higher than for men. This movement has helped reduce inequality in the composition of these new jobs in Brazil. These were the findings of the study “Quais os grupos mais beneficiados com o bom desempenho do mercado de trabalho em 2024” (or “Which Groups Benefit Most from a Stronger Job Market in 2024”), carried out by the Fundação Getulio Vargas’s Brazilian Institute of Economics (Ibre-FGV) researchers Janaína Feijó and Helena Zahar.

Experts welcome the trend seen in 2024—driven mainly by the employment boom—but point out that it does not change the existing structural gender inequality in the job market, and it remains to be seen if the trend will continue in the future.

Based on data from the General Register of Employed and Unemployed Workers (CAGED), the study shows that the balance of formal jobs held by women grew by 45.2% from January to August 2024, compared to the same period in 2023. Among men, the increase was 10.1%. Of the balance of formal jobs created in 2024 up to August, 46.4% were occupied by women and 53.6% by men. In the same period of 2023, these shares were 39.6% and 60.4%, respectively.

This movement contrasts with 2023—when there was a loss of the female share in the balance of new formal positions—and marks a return to levels close to 2021 and 2022, although they were considered atypical as they were driven by post-pandemic recovery, Ms. Feijó says.

“Although the labor market is still imbalanced, it was much more so in the past. The strong performance in 2024 helped absorb the overall female workforce. This year, the market reacted and helped combat this inequality,” said Ms. Feijó, an economist specializing in gender issues in the job market, among other topics.

Behind the faster expansion of formal positions among women in the country in 2024, the Ibre-FGV researchers believe there is an influence of the profile of the sectors that drove the expansion—mainly services, commerce, and customer service—, where the female demographic is more present.

“The occupations that have been generating the most [positions] are also those that tend to absorb more women, as is historically the case with the services sector. However, compensation is not high. It’s a double-edged sword: it can absorb, but not address the salary equality issue,” the Ibre-FGV economist said.

Ana Luiza Barbosa, a researcher at the Institute of Applied Economic Research Institute (IPEA) and vice-president of the Society of Family and Gender Economics (GeFam), says the news of a better composition of the balance of formal job positions is positive. She says it results from better job market dynamics and hides the persisting gender inequality.

“There is a significant difference in the pace of growth in the formal job balance. The job market is continuously tight. Of course, that is a good thing but it somewhat masks a structural gender inequality,” Ms. Barbosa said.

In her reading, it is hard to tell if that is a permanent trend. As it is closely tied to the dynamics of the Brazilian job market as a whole, it could be a temporary movement. “Reducing inequality in the balance of new positions is different from doing so in the entire market. The study portrays the market’s dynamics, and how it is functioning. It is still positive news but we can’t say it will continue,” the IPEA researcher argued. She describes the reduction in gender disparities in employment in the country as “very slow.”

Janaína Feijó, one of the study’s authors is also wary: “What we see in 2024 is that the formal job market is absorbing more women but we are not addressing the quality of these positions. More observation over time is necessary to say if this will continue. For that to be seen as a permanent trend, the market must continue creating formal jobs and absorb more women,” she states.

Even with the faster rate of increase, the absolute balance of formal positions in 2024 is still smaller among women (800,200) than among men (926,200). The gender disparity is evident when comparing the female participation in the population as a whole with that in the job market when considering the total number of job positions.

In the population aged 15 or older, women make up 51.8% of the total, and men 49.1%, according to the 2024 population projections by the Brazilian Institute of Geography and Statistics (IBGE). Data from the Continuous National Household Sample Survey (PNAD Contínua)—which includes both formal and informal job markets—show that women make up 43.7% of the labor force, which includes workers who are employed or seeking a job. Men account for the remaining 56.3%, a share greater than their portion of the Brazilian population.

The employment rate among women reached 48.1% in the second quarter of 2024, a record since official records began in 2012, but still below 50%. Among men, the rate is 68.3%. The indicator points to the share of people aged 14 or older who are employed.

The study shows the greater incorporation of female labor in formal job positions in 2024 but that is only one part of the inequality observed in the market, Janaína Feijó argued. “We are only talking about the absorption of female labor, which is a good thing, although it is not everything.” Data from the New CAGED, from the Ministry of Labor, indicate little change in women’s average income in the formal market.

On average, the real average entry salary for formal workers was R$2,156.86 in August 2024, with relative stability over the previous 13 months. For men, it is slightly higher at R$2,245. Women’s monthly earnings are R$2,031, although it shows stability.

“Over the last 13 months, there have been small monthly variations but the difference between men’s and women’s average salaries remains evident, with women consistently receiving an average entry salary around 10% to 11% lower,” Ms. Feijó concluded.

*By Lucianne Carneiro — Rio de Janeiro

Source: Valor International

https://valorinternational.globo.com/