The street is a business counter

Experts say unemployment tends to increase until 2017, playing more informal in the market

Luciléia de Oliveira Rodrigues, 47, and her daughter Gláucia Rodrigues, 25, saw the opportunity for income on the street. “My other daughter started making pot cake to sell at college, and I thought: if it is working there, it will also work on the street”, says Luciléia. And it's giving. They sell about 80 units per day, at R $ 5. They leave around noon and return at 18 pm. They stay until 1 am making cakes. They had a beauty salon, but were forced to close their doors this year. “Customers were losing their jobs, and it didn't work anymore. We even try to look for a job, but they don't even wait for us to get right into the service stations and they already say they don't have a place, ”says Luciléia. According to economists, this lack of vacancies still lasts at least until the middle of next year and, consequently, informality will continue to grow.

According to the economist at Ibre / Fundação Getúlio Vargas (FVG) Fernando de Holanda Barbosa Filho, informality is more likely to drop significantly only in 2018. “In 2017, it is possible that it will stop increasing. Now, for this, it is necessary for the government to work on the tax issue ', says the economist.

He explains that the reflexes of the reduction in economic activity take a while to be felt in the job market: “The same logic applies when economic activity starts to grow again. Employment does not grow at the same rate. After all, the entrepreneur waits a while to find out if business growth is consistent. ”

“This year is already lost. GDP is expected to fall between 3% and 3,5%. The improvement should only come in the middle of 2017, because first the entrepreneur has to be sure that there will be demand; until then, current employees will work more overtime ”, analyzes Virene Matesco, professor of MBA in Economics at the Business School Institute (IBS / FGV).

Until then, the number of people doing what they can also tends to grow. “In a crisis, informality tends to increase exponentially, as people need to eat. And if you have no income or someone from the family to help you, you have to leave to look for an alternative, and creativity emerges. I have seen people selling everything and moving the shared economy through exchanges ”, he says.

Gláucia says that, after being discouraged from looking for a job with a formal license, going out to the street to sell cake was the best idea. She attached WhatsApp to informal work. "Many customers already place orders, and we take them there," he says.(With Juliana Gontijo)


Underground economy. According to the president of Etco, Edson Vismona, it is the same as informality, that is, all goods and services produced without being declared and, therefore, without generating taxes

By: Queila Ariadne

Newspaper O Tempo (BH)


Brazil should only recover stock of jobs lost after 2021

Since the beginning of 2015, the country has lost more than 2 million formal vacancies.
Recovery is expected to start in 2017, but will be slow, according to projections.


Even though some indicators start showing signs that the Brazilian economy has stopped worsening and may be bottoming out, the job market will need a few years to recover from the effects of the prolonged recession and absorb all those who have been laid off or not. they got a formal job.

Projections from consultancy Trends and GO Associados, based on market estimates for GDP (Gross Domestic Product), point out that only after 2021 will Brazil recover the level of formal jobs at the end of 2014, when the country lived a situation considered almost full employment.

Since January 2015, Brazil has lost 2,07 million formal jobs, according to data from the Ministry of Labor's General Register of Employed and Unemployed (Caged).

The country ended June with a stock of 39,1 million formal jobs compared to 41,2 million at the end of 2014. The record for the series was set in September of that year, on the eve of the presidential elections, when the total number of workers hired workers reached 41,8 million.

Already are 15 consecutive months of dismissals exceeding hires. Last year, Brazil lost 1,54 million formal jobs. In 2016, in the accumulated result for the year, until June, another 531,7 thousand jobs were eliminated in the celetist regime.

Loss of 1,3 million vacancies in 2016
Economist Luiz Castelli, from GO Associado, projects that the number of vacancies lost during 2016 will reach 1,36 million, totaling about 2,9 million formal jobs eliminated in the country in 2 years.

Falling wages and few alternatives
In an economy in recession, informality is bound to grow. The call underground economy increased for the first time in at least 11 years, according to a study by the Brazilian Institute of Ethics in Competition (ETCO) and Ibre / FGV, representing 16,2% of GDP, an increase of 0,1 percentage point in relation to the previous year.

IBGE figures show, however, that employment without a formal contract is no longer the escape valve for those who are unemployed. The number of informal workers rose to 10,083 million in June from 10,067 million 1 year earlier.

Even self-employment shows signs of saturation. There are almost 23 million Brazilians with this type of occupation, which brings together the self-employed, the so-called PJs (legal entities), individual microentrepreneurs (MEIs) and all those who do not pay wages for employees.

In the 12 months ended in May, the number of Brazilians working on their own grew by 3,9%, an increase of 857 thousand people. In comparison with the previous quarter, however, the number fell 1,1%, with an output of 263 thousand workers. See report from Jornal Nacional below

Source: G1- 07/08/16

To read the full story, click here

Underground economy grows again

by Evandro Guimarães and Fernando de Holanda Barbosa Filho (*)

The Brazilian underground economy represented, in 2015, 16,2% of the Brazilian GDP and grew in relation to 2014 (16,1%). This is the first growth in the annual comparison started in 2003, the initial year of the Underground Economy Index, built in partnership between the Brazilian Institute of Ethics in Competition (ETCO) and the Brazilian Institute of Economics of the Getulio Vargas Foundation (FGV / IBRE).

The underground economy is the production of goods and services deliberately not reported to the government, with the objective of evading taxes and evading Social Security contributions, laws, labor regulations and other norms that cause costs.

Failure to comply with laws and regulations, in addition to harming consumers, allows companies that use this expedient to continue operating. Companies that respect the law, on the other hand, suffer unfair competition, as they have competitors that do not bear all costs.

The increase in informality, although reduced, breaks the sequence of falls in this part of the activity that operates outside the law, and should be a cyclical event. The set of policies adopted that contributed to the recent reduction of the underground economy are still in operation and should return to the downward trend as soon as the crisis eases.

The reduction in the underground economy over the past few years (equivalent to 21% of Brazilian GDP in 2003) was the result of a set of measures that made the formalized activity more attractive. We observed a strong expansion of the credit market and a gradual increase in the average schooling of the population. The expansion of credit stimulated the formalization of both companies and workers. Formalizing the company and employment is, in most cases, an essential condition for accessing the credit market. The expansion of formal education raises wages, the bargaining power of workers and increases their chances of getting formal employment.

There was also the adoption of measures that sought to simplify compliance with legal norms and reduce their costs, such as the creation of Simples, Simples Nacional and Individual Microentrepreneur (MEI).

The reduction of the underground economy is important for the country. Informality brings direct damage to society, creates an environment of transgression, stimulates opportunistic economic behavior, with a drop in the quality of investment and a reduction in the growth potential of the Brazilian economy. The road is long, much has been achieved, but we still have a lot to do.


* Evandro Guimarães, Executive President of ETCO, and Fernando de Holanda Barbosa Filho, researcher at FGV / IBRE


Project expands benefits of the National Microenterprise Statute

Deputy Luiz Carlos Hauly PSDB-PR
Deputy Luiz Carlos Hauly (PSDB-PR)

The Chamber of Deputies analyzes Complementary Bill 418/14, by deputy Luiz Carlos Hauly (PSDB-PR), which proposes several changes to the National Statute of Micro and Small Enterprises (Complementary Law 123/06). One of them allows the craft industries of spirits, wines, beers and liqueurs to fit into Supersimples.

Source: Plantão News (21/01)

To access the full story, click here.


Informal Economy

27/11/2012 - Informal market

[iframe width = ”600 ″ height =” 490 ″ src = ” ″ frameborder =” 0 ″ allowfullscreen]

Clipping Type: TV
Issuer: CNT
Duration: 00:01:46

Tax digitization helps to reduce informality

Source: DCI (São Paulo - SP) - 05/06/2012

According to Professor Roberto Dias Duarte, a specialist in the Public Digital Bookkeeping System (Sped), this fiscal digitalization helped to reduce the rate of the so-called underground economy, also known as the informal economy.

From 2007 to 2008, the indicator in relation to the Gross Domestic Product (GDP) decreased from 19,5% to 18,7%. "This is because in this period [among other factors] there was the implementation at Sped in Brazil", he evaluates. In the following years, 2009 and 2010, the rate - calculated by the Fundação Getulio Vargas (FGV) and the Brazilian Institute of Ethics in Competition (ETCO) - was 18,6% and 18,4%, respectively.

The explanation, according to the expert, is because Sped, by facilitating the inclusion of Brazilian entrepreneurs in the formal system (Simples Nacional or Micro Empreendedor Individual), made it possible to rationalize accessory obligations. In other words, greater understanding of what the government should pay in tax.

“In this digital tax ecosystem, which integrates companies and authorities, the existence of an underground economy is becoming more and more difficult and expensive every day”, he understands, adding that the fight against unfair competition is one of Sped's objectives and causes it to decrease informality in the country.

On the other hand, Duarte recalls that the rate of the underground economy in relation to Brazil's GDP, which represents more than R $ 660 billion, is “almost the size of an Argentina”, in addition to being well above the world average, which is 10%.


For Duarte, the difficulty in adapting to the tax and accounting digitalization system, especially for micro and small entrepreneurs, is a matter of management. "Many are not informed about this adequacy".

For Professor Edgar Madruga, “the biggest problem for Sped is cultural”. “The owner of a company has to know that it is his responsibility to adapt to the system in the best possible way. The risk is entirely his, ”he analyzes.

According to also a specialist in Sped, and a member of the Brazilian Association of Tax Law (Abat), Tânia Gurgel, there is a high cost for micro and small companies, ranging from R $ 200 thousand to R $ 300 thousand, involving from their own technology for each obligation within Sped, until training of the internal team. “And for large companies, it can reach a cost of R $ 30 million”, adds Jorge Campos, tax specialist at Aliz, and is also an administrator on the Sped Brasil blog.

The experts' comments were made yesterday during the 1st National Forum on the Digital Tax Era and the Electronic Crossing of Tax Information, carried out by Aba.


Research by JAPS Sped, coordinated by consultants José Adriano Pinto and Roberto Dias Duarte, shows that there are several problems that companies face in relation to Digital Tax Bookkeeping (EFD).

The survey, carried out between March 15 and 18, 2012, was attended by 470 professionals responsible for the Bookkeeping of more than five thousand corporations.

According to the study, although 90,2% had transmitted the files on the initial deadline (March 14), the majority (60,4%) faced problems in the operation. The most prominent point was the insecurity regarding the quality of the content. Almost 70% stated that they intend to rectify the Bookkeeping, with 79,1% saying they face problems with EFD data.

“One of the biggest difficulties is in the preparation of company registrations, at the foundation. As the vast majority of companies do not have this centralized information, this fact compromises all other operations ”, says Miriam Negreiro, consulting director at ABC71.

She points out that the responsibility for this problem begins with those who create or adequately maintain records that have tax and accounting implications and how to operate or use this data.

The study also mapped the profile of the professionals who answered the questionnaires and found that 30% are members of accounting organizations. Retail and wholesale trade also deserves to be highlighted with 8,3% and 3,6%, respectively.

The services sector had a 7,5% share. The industrial sector, on the other hand, had an expressive participation, in its various specializations, with emphasis on: automobile (3,4%), consumer goods (2,8%), steel and metallurgy (2,3%). The construction sector was represented by 3,2%.

Audio files

Interviews and news


27/05/2014 - CBN Radio
Listen to the interview with ETCO Executive President Evandro Guimaraes, given to Journalist MILTON JUNG in the CBN Newspaper today, May 27th - 7am


06/06/2013 - National Radio of Brasilia
Listen to Roberto Abdenur's interview with Rádio Nacional de Brasília on the 10 + 10 Debate Cycle


27/11/2012 - CBN Radio - IES
Roberto Abdenur speaks to CBN about the Underground Economy Index

ETCO's Executive President - Roberto Abdenur, gave an interview to Rádio CBN on 18/12/12 where he talks about the Underground Economy Index and the stagnation of its results in the last study.


27/11/2012 - Rádio Jovem Pan - Informal Economy
Jornal da Manhã: Underground Economy Index

In the Jornal da Manhã program, presenters Roberto Muller and Leonardo Muller talk about the Underground Economy Index conducted by FGV and ETCO Institute


27/11/2012 - Rádio Jovem Pan - IES
Jornal da Manhã: Underground Economy Index

In the Jornal da Manhã program, the announcers Roberto Muller and Leonardo Muller present data from the Underground Economy Index conducted by FGV and Instituto ETCO


27/11/2012 - CBN Radio - IES 0:20
CBN talks about Informal Economy

The CBN newspaper comments on some figures presented in the Underground Economy Index carried out by FGV and Instituto ETCO


27/11/2012 - CBN Radio - IES 1:28
CBN talks about Informal Economy

During the Reporter CBN program, data obtained from the survey of the Underground Economy Index carried out by FGV and Instituto ETCO are presented


27/11/2012 - Rádio Band News
Band News: Informal Economy moves 17% of national GDP

At Band News, presenters talk about Informal Economy and the Underground Economy Index conducted by FGV and Instituto ETCO



27 / 01 / 2012 - Interview by ETCO President Roberto Abdenur to Rádio Jovem Pan about illegal practices in the fuel sector - This audio file is also available here in Windows Media (wma) format


28 / 07 / 2010 - Underground economy - Ricardo Amorim - Eldorado Radio

26 / 07 / 2010 - Informal economy - André Franco Montoro - Rádio Nacional DF

21 / 07 / 2010 - Underground Economy Index - André Franco Montoro - Eldorado Radio

21 / 07 / 2010 - FGV study on underground economy - CBN Radio

21 / 07 / 2010 - Informal economy generated 578 billion in Brazil (1) - Radio Band News

21 / 07 / 2010 - Informal economy generated 578 billion in Brazil (2) - Radio Band News


02 / 12 / 2009 - São Paulo intensifies the fight against piracy - Radio Band News

02 / 12 / 2009 - Financial crisis favors the growth of the informal economy - Young pan

01 / 12 / 2009 - FGV discloses IPC-S - Underground economy - Eldorado Radio

01 / 12 / 2009 - Informal economy grew 0,9% over GDP in the first half - CBN Radio

01 / 12 / 2009 - City free from piracy and illegal trade - CBN Radio

01 / 12 / 2009 - Curitiba will be the first city in the Piracy-free City project - Band News

30 / 11 / 2009 - Curitiba will be the first city free from piracy and illegal trade - Band News

04 / 06 / 2009 - Debate - People Talking Program - Trianon Radio

14 / 05 / 2009 - Interview with André Franco Montoro Filho - CBN Radio


30 / 09 / 2008 - Interview with André Franco Montoro Filho - Eldorado Radio

30 / 09 / 2008 - Interview with André Franco Montoro Filho - Trianon Radio

22 / 07 / 2008 - Taxes - Interview with André Franco Montoro Filho - CBN Radio

04 / 06 / 2008 - André Montoro talks about the sale of Varig - Eldorado Radio

17 / 04 / 2008 - Underground Economy Index - Culture Radio

01 / 04 / 2008 - Interview with André Franco Montoro Filho - National Radio

28 / 03 / 2008 - André Franco Montoro Filho talks about possible increase in the basic interest rate that could be made by the Central Bank - Eldorado Radio

11 / 03 / 2008 - Interview with André Franco Montoro Filho - Radio Roquette Pinto

10 / 03 / 2008 - Interview with André Montoro on the informal economy in Brazil - CBN

07 / 03 / 2008 - Interview with André Franco Montoro Filho - AM Band Radio


10 / 09 / 2007 - José Nêumanne - high incidence of tax evasion - Young pan

16 / 08 / 2007 - Interview - André Franco Montoro Filho - CBN Radio


More audio: Institutional ETCO spots