More than half of Brazilians who opened their own businesses want to become a CLT again | Brazil

Research conducted by Central Única dos Trabalhadores (CUT) shows that although 53.4% ​​of those interviewed believe that Brazilians, in general, prefer to be entrepreneurs, 56% of freelancers currently in the private sector who have CLT experience say they would definitely take on a formal contract again.

The survey, which was conducted in person, included 3.85 lakh people from the economically active and inactive population and those working on digital platforms in the five regions of the country. It was implemented by Vox Populi with the participation of the Department of Statistics and Inter-Union Social and Economic Studies (Dieese).

This is a broad work. The perception of getting a formal job or going into “self-employment” is just one of the aspects that are addressed. According to Marta Maia, technical lead for research at Vox Populi, the work will allow the creation of a database that can be divided, “to contribute to qualified debate.”

What attracted the most attention from the management of CUT and Dieese is the perception that Low wages, qualification requirements and long working hours are, according to participants from the economically active population, the main factors that keep them away from formal employment.. Low salaries stood out at 44.5% and excessive demands at 38.7%.

“We have seen manufacturers offering two minimum wages, but requiring qualifications and proof of at least two years of experience,” says Sergio Nobre, national president of CUT. “As well as specialist drivers of dual-articulated urban buses earning this as well.” “Under these circumstances, many people are giving up their jobs to become app drivers,” he adds.

According to the latest National Household Sample Survey (Pnad), conducted by the International Institute of Statistics, informal employment covers 37.8% of Brazilians in the labor market.

Nobre highlights that “what led to informal work was the instability of formal work.” “It’s the perception that as an employee you won’t be able to pay your bills,” adds Adriana Marcolino, artistic director at Dieese.

For Professor Nelson Marconi, a researcher on the subject at Fundação Getúlio Vargas, many began to view the signed document as “something unwanted.” For him, the wave of so-called “hollowing out” (individual legal entities) among workers with a lower educational level must be controlled, because these are the people who demand social rights the most.

“It is often an illusion to imagine that this type of service will guarantee a higher income,” Marconi adds. “You earn more because you work more. But the pay per hour is lower.”

Unionists call this movement “necessary entrepreneurship.” For Nobar, the wave spread on social media. He says it is to the point of “influencing even the academic field as well as the justice system.” CUT has discussed this issue with the Federal Government and the judges of the Federal Supreme Court.

Although the research reveals that entrepreneurship, for those interviewed, is a national desire, there is a contradiction between this perception and personal desires. In the question “What kind of professional activity would you like to pursue”, two conflicting (and spontaneous) answers were linked.

“Getting a good job with a formal contract” was mentioned as a goal for 17.8% of those interviewed, while 17.6% said they preferred self-employment. Passing a public exam is the wish of a minority of respondents (7.6%), although the stability offered by this type of work was highlighted as the biggest attraction, cited by 48% who would prefer to follow this path.

The research reveals other strange inconsistencies. A total of 40.9% of CLT subjects responded that they “definitely” wanted to become entrepreneurs. At the same time, on the question of those who work as freelancers in the private sector and would like to return to the CLT system, in addition to the 56% who declared that they would “definitely” return to this model, 30.9% also said that they “could” return.

The widespread use of the term “entrepreneur” also confuses many people. A part of the interviewees who work in professions such as street vendors, builders, hairdressers, IT technicians and manicurists declared themselves self-employed in the survey, and another part declared themselves entrepreneurs. “One in six self-employed people identifies as an entrepreneur,” Marcolino highlights.

However, Vox Populi’s research clearly points out the main reasons why professionals become self-employed. The first is flexible working hours, which was highlighted by 35% of those who prefer to work independently. “Being your own boss” came in second at 25%, followed by “doing what you truly love” (18%), and “being an entrepreneur, building something and leaving a legacy” (15%).

“There is a clear growth in the number of self-employed workers among those with less education, which reinforces the need for discussion to avoid future obsolescence of the CLT, which brings with it a wide net of social protection,” says Marconi.

The professor also suggests restricting the activities that can be included in the tax system to MEIs (individual micro-entrepreneurs) to avoid fraud as well as the risk of employing some professionals under the less onerous system. “It is necessary to determine what the upper limit of this is,” he says.

Marconi also recalls the large number of informal workers who will not retire, which leads to growing loopholes in the social security system.

According to Noubar, some new professions have already begun to organize themselves into associations and cooperatives. In Pernambuco, the Union of Self-Employed Delivery Workers, Employees and Motorbike Workers (Seambape) was created. Also in El Salvador, an app-based drivers’ union, Sindmab, was created.