Retail sectors are beginning to experience a slowdown in business during the pandemic, and the COVID-19 crisis is likely to have an increasingly negative impact, leading to layoffs.
In Campo Grande, the CDL (Chamber of Shopkeepers) carried out a recent survey, and the results are surprising: in the capital, at least 70,000 workers have already been laid off. retail sectorIn Mato Grosso do Sul, the total number of employees can reach 20%.
However, retail employment totaled 320,000 before the pandemic crisis. In the first fifteen days of March, sales fell by 501,000. Due to the sharp decline, businesses closed on the 19th following the City Hall's measure, as well as the fight against Covid-19 and social isolation.
Layoffs in the retail trade in Campo Grande
According to Adelaido Vila, president of the Campo Grande CDL, we are going through a difficult time. For example, with the high number of layoffs, business owners are unable to access the financing proposed by the Federal Government. Credit is making it difficult for business owners, and the only solution is to lay off employees.
There's already talk that the numbers could be even higher after businesses reopen. However, reopening is being proposed for the following day (6). The first to be laid off are temporary workers, or those with the shortest tenure. Although there's no guarantee that businesses will reopen, approximately 25% of these employees have already been laid off. Layoffs are also expected to occur at companies with 40 to 50 employees, making it difficult to retain employees in this scenario.
On the other hand, it is difficult to predict the number of exact layoffs, as there may be different behaviors in the commercial sectors. What is guaranteed is around 25% to 30% of layoffs, but according to Sebrae, 38% can be maintained for a month and 57% require loans.