Effects of Unemployment on Economic Sectors: A Proposal for Behavior Analysis with Brazilian Municipalities

Abstract

Although determined municipal public policies focus on the unemployment rate, to understand its determinants, one must assess how the main employment sectors in the country work, and how they affected by unemployment. In view of these facts, it is possible to raise the following research question: what is the influence of the main employment sectors on the unemployment present in Brazilian municipalities? Thus, this research will aim to analyze the effects of unemployment in the main employment sectors in Brazil. The study used data from 5.631 Brazilian municipalities, performing quantitative descriptive analysis procedures, in addition to the development of a linear regression model and a Tobit regression model. The Services sector appears with a positive highlight in relation to the others. Mineral Extractivism, on the other hand, presented a worrying unemployment estimate, being the sector that suffers the greatest impact in relation to unemployment. Among the economic sectors that also presented worrying coefficients are the Transformation industry (0.80) and Business (0.77). The results presented in the research can serve as a basis for decision-making, not only for public sector managers, but also for managers in the private sector.