Small businesses account for 85% of Brazil’s hires in February

Small businesses accounted for the creation of 85 percent of the jobs generated in February, as per a survey by the Brazilian Support Service for Micro and Small Enterprises, or Sebrae.

These were 206,697 openings, out of a total of 241,785 new jobs created.

For economist Roberto Piscitelli, professor at the University of Brasília (UnB), the jobs generated by small companies reduce concentration in the economy. These organizations, he argued, help spread economic networks and tend to decentralize wealth.

“In addition, these opportunities tend to take in a labor force that relies on less technology. That’s why we should encourage programs for small and medium-sized enterprises,” he said. These jobs are also created closer to people’s homes.

In the opinion of Economy Professor Juliana Bacelar from the Federal University of Rio Grande do Norte, the results cast light on the role of small companies in employment generation—which have fared better in services than in commerce.

Services

Data analysis reveals that services was the industry that hired the most: 135,238 jobs in February. Next comes manufacturing, with 37,429 posts, while construction had 22.6 thousand. Commerce had a negative balance: -1,344.

“It’s no wonder that, when we talk about which segments are pulling up the economy, the answer is the service sector, as it’s where [the small businesses] are most present and hiring the most. The sectors with the sharpest growths are food and education,” she pointed out.

On the wane

Among medium and large companies, layoffs exceeded admissions for the second consecutive month. Of the 326,356 new jobs generated in 2023, 83 percent were stemmed from micro and small companies.

The figures, Sebrae stated, show how vital small businesses are to Brazilian economy. They generate income and help ensure the livelihood of thousands of people and their families.

“To talk about economic and social development means to talk about micro and small business,” Sebrae Chairman Décio Lima remarked.