The coronavirus crisis will leave up to 12.6 million unemployed and will cause a record contraction of almost 15% in workers’ income, if the government does not expand the instruments of income transfer to the population and help companies to keep jobs.
The figures are contained in a study by researchers from Ibre / FGV (Brazilian Institute of Economics of Fundação Getulio Vargas) Silvia Matos, Luana Miranda, Livio Ribeiro, Vilma Pinto, Paulo Peruchetti and Tiago Martins.
Even with the measures already announced to guarantee extra income for formal and informal workers, which add up to R $ 170 billion, the wage bill should fall 5.2%, a record retraction of the series started in 2003. Without these measures, the drop would be 10 , 3%.
Read more in Folha de S. Paulo