Brasília, June 24, 2003 (Agência Brasil - ABr) - The Minister of Labor and Employment, Jaques Wagner, said that the greatest barrier to job creation, currently in Brazil, is the lack of investments by the productive sector, as a result of a tax burden that can amount to 33% of the payroll, as well the country's economic situation. "We face very difficult conditions, of recession, which is worldwide," he affirmed, adding that many countries face financial problems, like Brazil, even though their tax burdens are smaller.

According to Wagner, this situation is the result of the exclusionary globalization model that is growing throughout the world and which has led President Luiz Inácio Lula da Silva to seek relations with other countries that "suffer from a similar drama" in order to find a negotiated solution.

The Minister also affirmed that the President is "experiencing anguish," because job creation is not taking care of the three million young people who are looking for jobs, nor those who lost their jobs. For this reason, Wagner said, there is a great effort to reorganize the economy.

In an attempt to reduce the problem, he said that his Ministry is taking various steps. The first one, which will be launched by the President on June 30, is the First Job program. Its goal is to create 250 thousand jobs in the first twelve months for young people between 16 and 24, who try to get formal jobs and are usually rejected with the justification that they "lack experience." To deal with this difficulty, the government will announce a credit line for firms enrolled in the National Employment System (Sine) as a counterpart for creating places for those who are arriving on the job market.

Jaques recognizes that people who are over 40 also face many difficulties in rejoining the job market, and he explained why emphasis is being placed on jobs for young people. "We are working initially with young people, because the unemployment rate in this age group is double the national unemployment rate, and this population ends up becoming a kind of reserve army for organized crime. The statistics are dramatic, to the point where two thirds of the prison population is made up of people under 24 years of age."

But this effort doesn't exclude others, he said: "We are beginning with young people, because the drama is greater there. But it is clear that it is economic growth that will lead to the generation of employment, minimizing the lack of jobs and income." (DAS)