THE RELATIONSHIP AMONG INDUSTRY EMPLOYMENT LEVEL, MINIMUM WAGE AND UNEMPLOYMENT RATE IN BRAZIL: A VAR-BASED MODEL

Employment levels, especially within the industrial sector, could be indicators of economic vitality and societal well-being in a country.The Brazilian industrial sector has long been recognized as a cornerstone of its economic landscape, providing employment opportunities for millions of workers.However, the performance of the industrial sector is closely intertwined with broader macroeconomic factors, particularly labor market dynamics.This article aims to investigate the relationships between Industry Employment Level, Minimum Wage, and Unemployment Rate in the short term, considering the context of Brazilian re-industrialization.The VAR model was used to analyze the relationships between variables over time, enabling the examination of how variables influence each other and how shocks in one variable affect others in the system.The outcomes were significant, highlighting the inverse relationship between the Unemployment Rate and Industry Employment Level.It was evidenced that an increase in the real value of the Minimum Wage could potentially increase the region's Unemployment Rate and that Industry Employment Level has a strong influence on Minimum Wage, demonstrating the importance of industrial activity for the stability of the Brazilian economy and the need for planning and investing in national reindustrialization projects.