Number of workers in the sugar sector falls, but quality of jobs grows

The national sugar-energy chain, an important sector of agribusiness and the Brazilian economy, has undergone several transformations in recent years, resulting in different effects on the job market in this segment. A study carried out by researchers from Esalq/USP and Cepea (Center for Advanced Studies in Applied Economics) demonstrates that, although the number of workers in the sugar-energy sector fell between 2008 and 2016, the quality of jobs in the sector grew during this period.

 According to researchers from Cepea and Esalq/USP, from 2008 to 2016, there was an increase in the proportion of workers in the sugar sector with higher education compared to total employment and also a significant increase in real wages. Among other factors, this scenario is the result of the harvest mechanization process, notably in the Center-South region of Brazil. According to researchers from Cepea and Esalq/USP, this technological change has brought important developments, such as the possibility of better quality jobs and salary gains, which were observed even among workers with lower qualifications. The study also highlights the effects of the crisis on the sugar-energy chain between 2009 and 2016, which had an impact mainly on the reduction of industrial jobs, given the closure of plants during the period.

SECTOR DATA – The sugar-energy chain has an important contribution to generating income and jobs. According to information from Cepea, 3,2% of the total number of people employed in agribusiness in 2017 were in activities in the sugar-energy chain (involved in the production of sugar cane, sugar and ethanol). The activity also presents a high level of formalization within agribusiness, covering 8% of all formal jobs in the sector in the same year. As a comparison, while in the agricultural activity of sugarcane cultivation 80% of employed people are employed with a formal contract, for Brazilian agriculture in general this rate is only 17%.

In the sugarcane agroindustry (sugar and ethanol plants), 95% of those employed are employed with a formal contract, while for the agroindustry in general this percentage is 58. In agribusiness as a whole, only 36% of employed people have a formal contract. This result is an indicator of the highest quality level of jobs generated by the sugar-energy activity.

The complete study, with graphs, tables and methodological notes, is available here