Further tools in the fight

against poverty

Danielle Kineipp de Souza

Ministry of Labor and Employment - Brazil

Main topics of the presentation

1- Overview of Brazilian labor market;

2- More Employment System (Sistema Mais Emprego);

3- Databases and their relations with public policy;

4- Unified Registry (CAD-ÚNICO);

5- Poverty reduction results in Brazil.

Labor Statistics – Formal Employment

Job creation from January-2003 to December-2013 (source: Annual Report of Social Information – RAIS) ............................................................... 20,264,520

Job creation in 2013 (source: RAIS) ............................................ 1,489,721

Job creation in 2013 (source: RAIS) ............................................ 1,148,081

Job creation from January-2014 to September-2014 (source: General Register of Employed and Unemployed - CAGED) .................................. 904,913

BRASIL - Taxa de Formalização(*) e Informalização

Período: 1992 a 2012

43,644,5

43,3

45,8 45,246,5

47,348,6

50,552,1

53,6

58,559,6

56,7

54,853,5

52,751,4

49,547,9

46,5

41,540,4

44,143,6

44,644,3

46,4

55,956,4 56,4

55,455,7 55,554,2 53,6

39,0

44,0

49,0

54,0

59,0

64,0

1992 1993 1995 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012

Fonte: PNAD/IBGE

(*)- São considerados os trabalhadores que contribuem para a previdência social e os

Estatutários e Militares

Pe

rce

ntu

al (

%)

Formal (*)

Informal

Brazil – Percentage of Formal and Informal Work

1992 - 2012

Source: PNAD

8

Source: PME/IBGE

Brazil – Unemployment Rate Evolution

Metropolitan Areas

Annual average – 2003 to 2014 (march)

Brazilian Public Employment System

Total Network

- 1.635 National Employment System’s agencies through

local and regional partnerships;

- 578 agencies from the Ministry of Labor and

Employment own network (27 regional offices, 114 sub-

regional offices and 437 local offices);

- CAIXA Econômica Federal authorized agencies (for

Unemplyment-Insurance).

Overview

- More Employment System and Website (Sistema e Portal Mais Emprego)

- Integrated approach:

- Standardized service provided at all the agencies (SINE, SRTE and

authorized CAIXA agencies);

- Employment policies, the 3 pillars of the Unemployment Insurance Program –

financial assistance associated with labor intermediation and vocational

training;

- Makes it possible to require mandatory intermediation of unemployment

insurance beneficiary workers to job vacancies and vocational training

(compatible with the professional profile of the worker);

- Brings together in a single database the information of workers and

vacancies available in the SINE employment agencies with national scope.

- Pilot in the state of Paraíba in 2010 and expansion in 2011.

Labor Intermediation

Worker

Register and update data;

Print curriculum;

Check vacancies compatible with the worker’s profile;

Apply to the selection process;

Monitor the process of labor intermediation;

Register interest in a vocational training course.

Employer

Announce job vacancies;

Consult curriculum, including those from other states;

Select workers for interview;

Monitor the process of labor intermediation;

Register the result of a labor intermediation process.

Labor Intermediation

Unemplyment-Insurance

Unemployment-Insurance - web

Sends information automatically, using payroll file;

• Optimization in completing in formation, eliminating the requirement

of filling in paper forms;

• Agility in the process;

• Reduction in the expenses of purchasing pre-printed forms;

• Guaranteed authenticity of the information provided.

Old Layout

• Institucional look

• Unresponsive

• Separated accesses to

services available in the

Portal

Consequences...

New Layout

Gains Obtained with the Current Version

• Ease of accessing services of the More Employment

Website:

• Ease of learning how to use the features

• Ease of memorising the features

• Efficient access to the features:

• Faster access

• Fewer mistakes in accessing features

• Higher user satisfaction

New tool: “self-intermediation”

Employer Worker

The employer searches for workers that match the job’s profile, without viewing personal information.

The worker searches for job vacancies without viewing confidential information about the companies.

When the employer selects someone to participate the selection process, the system sends an e-mail to the worker with all the information about the interview.

“intermediation” by the employer

When the worker chooses a job vacancy, the system sends an e-mail to the worker with all the information about the interview. It also notifies the company.

“self-intermediation”

The worker can only perform “self-intermediation”:

- Up to 3 times (after that, he has to inform a Sine office how

was the interview).

- If he doesn’t have more than 3 pending issues in his profile

(missing information, lack of feedback to Sine offices, etc.).

The employer can only:

- Select worker after the job vacancy is validated by a Sine

office.

- Select worker that don’t have more than 3 pending issues.

New tool: “self-intermediation”

Website- Further Developments

- More interactive features

- Migration of PRONATEC graduates

- Target groups – other government programs

- Dissemination strategy

- Strengthening and expansion of the features available for employers

- SMS service

- Brazilian Classification of Occupations (CBO) - complete description

10

Administrative Records -

Ministry of Labor and Employment

RAIS

Annual Report of Social Information

(Decreto 76.900/75)

CAGED

General Register of Employed and Unemployed

(Lei 4.923/65)

11

General Register of Employed and Unemployed - CAGED

Monitor and supervise the process of admission and dismissal of employees

Establish measures against unemployment and assist unemployed

Support labor inspection

Unemployment Insurance payment

Labor intermediation and training

Part of CNIS - National Register of Social Information

Provide statistics

12

Annual Report of Social Information - RAIS

Support the control of work nationalization, according to the lawof 2/3

Monitoring concerning FGTS and Social Security

Abono Salarial payment – workers with average income up to 2minimum wages

Support policies on skills development

Part of CNIS - National Register of Social Information

Provide statistics

13

Characteristics:

CAGED

Coverage: part of the formal

labor market (celetistas).

Periodicity: monthly

Scope: national,

representative for

municipalities.

Only the establishments that

admitted or dismissed

employees during the base

month.

Coverage: the hole formal labor

market (CLT, public servants, single

workers, temporary workers and short

term contracts).

Periodicity: annual

Scope: national, representative for

municipalities.

Information: all establishments and

their employees, every month during

the base year.

RAIS

Submission of CAGED’s forms – More

Employment System

• Forms can be filled online

or through a document

file generated by payroll

systems

• Safety is assured by Digital

Certificate

• The Website is the mais gate through which CAGED’s forms

are submitted

• CAGED’s forms must be sent by all the companies every month

Pronatec and Unemployment

Insurance

National Program for the Access to Technical Education and Employment

(Pronatec) – main goal:

• Expand and decentralize the availability of professional and technological

training courses in the country. In the first year of Pronatec, 2.25 million places were

filled in technical and professional qualification programs in over 400 areas of

knowledge.

• Highlight: Worker Training Scholarship, which provides training courses for

people in social vulnerability and workers of different profiles. In both cases, the

beneficiaries are entitled to free quality training, food, transportation and learning

materials that will allow subsequent employability.

• Minimum workload: 160 hours.

Changes – Unemployment Insurance Program

1 – Workers that receive the financial benefit of Unemployment Insurance for the

second time (or more) must demonstrate enrollment and attendance in course of

initial and continuing education or professional qualification. There's prerogative to

suspend benefits if such evidence is not demonstrated.

2 - The financial benefit will be canceled if the employee refuses to enroll in training

courses consistent with the declared or registered qualification.

Profile of the training courses:

I - free;

II - available in daytime;

III - limited to four hours daily;

IV - always held on weekdays.

Pronatec and Unemployment

Insurance

United registry for all low income population: it contains basic personal

and household identification and profile

household characteristics

schooling

work and income

household expenditures

vulnerable situations: homeless, child labour, indigenous…

Effective since 2003 as the data backbone for the expansion of the

conditional cash transfer Bolsa Família Program.

Today it is practically a census of Brazilian low income population

(US$6/day):

+ 20 mm low income families and + 70 mm people

30% of the Brazilian population.

What is the Unified Registry?

No duplication of registering efforts;

No duplication of benefits and services;

Identification of the universe of people still to cover;

Identification of inclusion errors;

Economies of scale: a single inclusion and updating

effort, automation effort and crosschecks with other

databases.

Why a Unified Registry?

More data quality for all public policies.

Data collection

through

standardized

questionnaire

Online data

entry and

transmission

Overnight data

processing on a

national level:

identification

checks

Automatic

monthly

database

extraction

Local Level:

5,570

municipal governments

National Level: CAIXA

National Level: Ministry of Social Development

Data Quality Monitoring:

database matching (incomes,

benefits, address quality,

deaths); outdated registries,

exclusion errors.

The Unified Registry Data Flow

Ove

rsig

ht

and

Co

ntr

ol N

etw

ork

Registering Process

1) Selection of families

2) Interview and questionnaire fill out

3) Entry of data in the Unified Registry online software

4) Registry update: maximum 2 years

On

goin

g Q

ual

ific

atio

n

Low Income Families

Local Level Governments

Users of the Unified Registry

Poverty Reduction Results

Poverty Incidence Extreme Poverty Incidence

Source: IBGE, National Household Sample

Survey (PNAD)

Percentage of residents of permanent

households with per capita household

income of R$ 0,00 to 140,00 (~58 dollars)

Source: IBGE, National Household Sample

Survey (PNAD)

Percentage of residents of permanent

households with per capita household

income of R$ 0,00 to 70,00 (~29 dollars)

Thank you!