How is the Brazilian footwear sector in 2024

In February, 3,400 new vacancies were opened

The Brazilian footwear sector ended the first two months of 2024 with the creation of 5 thousand jobs. In February, 3,400 new vacancies were opened. As a result, the national footwear industry ended the period with 285.25 thousand jobs, 6.8% less than in the same period last year. The information was released this Wednesday (3) by the Brazilian Association of Footwear Industries (Abicalçados), which classified the result as "recovery, but without reasons for euphoria".

The executive president of Abicalçados, Haroldo Ferreira, highlights that the data points to a slight recovery, but that it still leaves the sector with results far below previous years. In 2022, for example, the first two months recorded the creation of 13 thousand vacancies. “We are reaching last year's level of job creation, but far below our capacity”, explains the director.

Factors
According to Ferreira, factors such as the exemption from import taxes for international platforms on remittances of up to US$50 have severely impacted the activity. “Compensatory mechanisms such as the payment exemption policy for the sectors that employ the most have helped to ensure that the impact is not greater. However, since the middle of last year, even this topic has been a source of controversy, with the Federal Government not respecting the will of the National Congress, which approved the renewal of the benefit twice”, comments the director, highlighting that companies They need security to plan the year and pave the way for a resumption of activity.

Payroll relief
The payroll tax exemption has been in force since 2011 and currently benefits 17 sectors of the economy that employ the most in the country, including footwear. Currently, companies in the covered sectors can replace the payment of 20% social security contribution on employees' salaries with a rate that ranges from 1% to 4.5% on gross revenue - in the case of the footwear sector, the payment is 1.5%. The renewal of the mechanism, which was approved by the National Congress last year, however, was put back on the agenda by the federal government via a Bill currently being processed urgently in the legislative houses.

(*) With information from Abicalçados.