Brazil Faces Skilled Labor Shortage Despite Low Unemployment Rate
Brazilian companies struggle with a skilled labor shortage amid low unemployment, due to educational shortcomings and shifting job preferences.
- • Brazil's unemployment rate is at a historic low of 5.6%, yet companies face a skilled labor shortage.
- • 62% of industrial firms report difficulties hiring qualified workers.
- • Only 11% of Brazilian youth pursue vocational training, lower than OECD averages.
- • Job turnover has increased, with younger workers favoring autonomous work over traditional employment.
Key details
Brazilian companies are grappling with a significant shortage of skilled labor even as the country records a historically low unemployment rate of 5.6%, according to data from the Brazilian Institute of Geography and Statistics (IBGE). A survey conducted by the National Confederation of Industry (CNI) revealed that 62% of industrial firms report difficulties in hiring qualified workers, highlighting a pervasive labor market challenge across sectors.
Felipe Morgado, superintendent of Professional and Higher Education at the National Service for Industrial Learning (Senai), points to Brazil's educational system, particularly its limited technical training, as a key factor behind this shortage. The international study "Education at a Glance" shows that only 11% of Brazilian high school students undertake vocational courses, compared to 35% to 65% in OECD countries. Educational institutions have begun focusing on tech-based qualifications in an attempt to bridge this gap.
The issue extends beyond qualifications to job stability and labor preferences. Since the COVID-19 pandemic, job turnover has risen, with 13.7% of Brazilians changing jobs in 2023, up from under 12% in 2018. In São Paulo's retail sector, the average length of employment has fallen to 26 months, a 7% decrease since 2015. Younger generations are increasingly attracted to informal and autonomous work, valuing flexibility over traditional employment. Eduardo Lima de Souza, an app driver, exemplifies this shift, noting that autonomy and income potential outweigh the benefits of formal jobs.
These intertwined factors — educational gaps, evolving work preferences, and increased job turnover — contribute to the "labor blackout" faced by Brazilian businesses despite the country's low official unemployment figures. The challenge underscores the need for structural changes in education and labor policies to better align workforce skills with industry demands and to address the changing dynamics of employment in Brazil (source: 148240).
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.