The behaviour of the Brazilian labour market across two recessions: An analysis of the period 2015-2017 and the COVID-19 pandemic

Abstract

The coronavirus pandemic arrived in Brazil at a time when the labour market was still recovering from the effects of the 2015-2016 recession. The adjustment of employment after the 2015-2016 crisis occurred through an increase in informal work, characterised by greater flexibility and the absence of dismissal costs. This kind of occupation was most severely affected by the social distancing measures and restriction of economic activities brought about by COVID-19. To understand the current situation of the Brazilian labour market, this Policy Research Brief examine the consequences remaining from the 2015–2016 recession in the labour market that enhanced the negative effects of the pandemic in the country, using data from the National Continuous Household Sample Survey.