World Cup will not increase hiring, IBRE alerts

Survey of Services and Trade of the Brazilian Institute of Economics (FGV/IBRE) measured the willingness of companies to hire new employees due to the World Cup. In the service sector, 78.5% of the surveyed companies said they do not intend to change their staff due to the World Cup, 10.6% plan to hire on a temporary basis, and only 1.9% on a permanent basis. The remaining 9% did not have an answer. As for trade, the numbers are even higher: the survey showed that 86.5% of companies do not intend to hire, 7.8% would hire temporary employees, 3% permanently, and 2.7% did not know.Apart from temporary, the effect of the World Cup on the labor market tends to be limited in sectorial terms, says IBRE's economist Aloísio Campelo. According to him, the World Cup will require manpower to meet the temporary increase for specific goods and services, but the effect will be quite localized. The research draws an interesting panel because we are getting closer to the event. The information was provided directly by the companies, which by now have some idea of the expected volume of sales, he explained.The economist also pointed out that the result should not be too different from that in other countries. In his opinion, it is likely that there will be a large increase in activity in the touristic areas of the host cities and a decrease in the regions mostly business oriented both in the host cities as in other regions, with the holidays. With the expected increase in sales, the restaurants that have usually operated at full capacity will not need more people, and the same can be concluded to hotel chains, he said. In the survey, the most optimistic sector for hiring was the air transportation sector; however, according to Campelo, it is possible that new employees will not participate in the core activities of companies, but in activities related to organization, logistics and service to tourists.SurpriseAloísio Campelo explains that the proportion of companies that will not hire new employees seems large - which was predictable. However, the supermarket industry was a surprise. I had my doubts especially about what to expect for the sector of hypermarkets and supermarkets. In this sense, it somewhat surprised me that they've emerged with a surge for temporary hirings compared to other segments that seemed more directly related to the event, he concluded.
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