A large number of layoffs and total loss of revenue affected mainly activities such as performing arts, fairs, and festivals, and music. The Federal District recorded a major economic decline and the following months are viewed with skepticism
The cultural and creative sector, which accounts for about 2.64% of GDP according to Firjan, was one of the most affected by the global crisis resulting from COVID-19. Concerts, events, and conventions were canceled and postponed indefinitely. Artists, producers, and entrepreneurs lost their revenues, which led to a high rate of layoffs in the market.
A survey carried out throughout the national territory will be launched this Tuesday (8), in a virtual event, to present the impact of the pandemic in the Brazilian cultural and creative sectors. The work was coordinated by researchers Pedro Affonso, Rodrigo Amaral, and André Lira, with support from UNESCO in Brazil, SESC, USP, the National Forum of State Secretaries and Directors of Culture, and 13 State Secretaries of Culture. The webinar is open to the public and can be seen on the channel of the Secretary of Culture of the State of Espírito Santo on YouTube.
Conducted between June and September this year, the survey obtained 2,667 responses from individuals, legal entities, and entrepreneurs, in 472 municipalities. The Northeast was the region with the highest participation, with 31.08% of responses, followed by the Southeast, with 27.59%. The state and capital with the largest participation were Bahia and Manaus (AM), respectively.
The sector most represented in the research is the performing arts, followed by music, visual arts, and crafts. Most respondents were female, with 53.2%. Of the total number of people who answered the questionnaire, about 35% are in the age group between 30 and 39 years old.
Participants were asked about the impacts of social isolation on their revenues during March to July this year, and about their expectations for the second half. Between March and April, 41.8% of them lost all of their revenues, and between May and July, this proportion increased to 48.88%. The Federal District was the place that most recorded total revenue losses between May and July (59.2%) and Mato Grosso do Sul registered the lowest percentage (16%). The sectors most affected by the total loss of revenue between May and July were the performing arts, fairs, and festivals, fashion, culture, hip-hop, and music.
A large number of layoffs was observed in 2020. About 44% of organizations dismissed all employees. Contracting of third-party services registered a reduction of 43.16% in the period from March to April. Between May and July, the percentage increased to 49%, 16. The festivals and fairs sector were the most impacted. Among the services that were hired even in the face of the crisis, internet advertising (19%), online tools for remote work (12.6%), and broadband internet service (6.94%) stand out.
There is skepticism for the 2020 financial statement. Most of the sample said they believed they would lose all of their revenue - the performing arts sector is the most pessimistic, in contrast to the design and creative services sector. Regarding some type of assistance, between March and April, 21.23% of the organizations did not receive any form of support. Approximately 26.58% received emergency assistance, which was used, primarily, to maintain the headquarters, premises, and offices.
- The summary of the study in Portuguese is available for free download here
Webinar - COVID-19 and the Cultural and Creative Sectors: Reality, Needs, and Expectations for the future
Participation of artists, cultural managers, and representatives of the government
Dates: December 8, 9, and 10, 2020
Hours: 7:00 pm - 8:30 pm