World

Brazil: employment data points to a slight recovery in the footwear industry

Apr 5, 2024 Brazil

The creation of more than 5 000 jobs in the Brazilian footwear industry in the first two months of this year is a sign of recovery, but it’s no cause for euphoria, says Abicalçados

According to the Brazilian Footwear Industries Association (Abicalçados), more than 5 000 jobs were created in the industry in the first two months of 2024, bringing the total number of jobs in the country to 285 25 thousand. Although this is a positive figure, it’s still 6.8% lower than in the same period last year.

The Executive President of Abicalçados, Haroldo Ferreira, stresses that the data points to a slight recovery, but still leaves the sector with a result far below that of previous years. “We are reaching last year’s level of job creation, but far below our capacity”. According to him, factors such as the exemption of international platforms from import taxes on shipments of up to 50 US dollars have had a serious impact on the industry’s activity.

“Compensatory mechanisms such as the payment exemption policy for the sectors that employ the most people have helped to limit the impact. However, since the middle of last year, even this issue has been the subject of controversy, as the federal government has not respected the will of the National Congress, which has twice approved the renewal of the benefit”, he concluded, highlighting that companies need certainty to plan for the year and pave the way for a resumption of activity.

Image Credits: abicalcados.com.br

Brazil Employment Footwear Organisations