Only 7% of entrepreneurs said they intend to strengthen the staff at the end of the year
For entrepreneurs the trade and services sector, the fourth quarter is usually the most awaited move for business, especially because of year-end parties. This leads companies to expand the workforce to meet the expected demand period. The economic crisis, however, has brought down the segment's expectations, and the industry has put on the brakes to fit the lean times. Nine out of ten entrepreneurs (88%) said they did not contract nor pretentem hire employees to enhance effective at the end of the year. Only 7% said they would not even admit anyone but the plan to do through December.
The data are part of a survey conducted by the Credit Protection Service (SPC Brazil) and the National Confederation of Shopkeepers (CNDL) released on Thursday. As president of the CNDL, Honorius Pinheiro, the explanation for this widespread despondency is the current situation of the economy. "The business community think that Christmas results, the main commemorative date in number of sales and earnings will be poor, which prevents them from investing in the infrastructure and especially discouraged the hiring of work," Pinheiro said.
According to the survey, 45% of entrepreneurs expect the worst sales for the last months of the year.Another 28% project a performance equal to 2014. The main reasons given by executives to pessimism, are the changes in politics and the current economic climate (32%), unemployment (20%) and high inflation and decrease in power household purchasing (16%). "Entrepreneurs clearly understand that the unfavorable economic environment inhibits consumption and causes many consumers to rethink their shopping habits in order to face the crisis," he said in a statement, the chief economist at SPC Brazil, Marcela Kawauti.
Only 27% of entrepreneurs surveyed said they plan to invest at Christmas, against 71% who will not.The expectations of the business break even if justified when taken into account the poor performance of other festive days of the year as Mother's Day, Valentine's and Father. Held in September, the poll of 1,168 entrepreneurs in capitals and cities of the country.
