• 5.3

    2019

0.2

Down

Key drivers

Talent Mismatch (7.9)

The mismatch between the skills employers are seeking and the skills available among job applicants has improved but remains high compared to the past.

Wage Pressure in High-Skill Industries (3.6)

Wage growth in low-skilled industries – particularly in the trade and wholesale sectors – has continued to outpace wage growth in high-skilled industries.

Labour Market Flexibility (9.2)

The legal and regulatory framework surrounding the labour market in Brazil is ranked as one of the most restrictive across the 34 markets featured in the Index. Despite a small decrease in the Indicator, it remains high.

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Education Flexibility

5.8
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Labour Market Participation

5.9
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Labour Market Flexibility

9.2
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Talent Mismatch

7.9
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Overall Wage Pressure

3.9
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Wage Pressure in High-Skill Industries

3.6
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Wage Pressure in High-Skill Occupation

1.0
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Jonathan Sampson

Managing Director, Hays Brazil

View from the Ground

A change in government initially brought with it a wave of optimism among Brazilian employers. However, the lack of initial traction has tempered this enthusiasm and GDP growth downgrades have followed. Despite this, we are seeing positive momentum in the skilled labour market, with a number of major projects being undertaken, indicating an underlying confidence in the near future. In general, candidates are taking a more considered approach before moving jobs and businesses are offering more balanced opportunities. This has resulted in a slowdown in wage growth for high-skill occupations. Furthermore, changes in labour regulations are now starting to take effect as Brazil becomes more comfortable with what they mean in practice. As such, a closer equilibrium can be seen that will support employment growth as macro conditions gain momentum.

Jonathan Sampson, Managing Director, Hays Brazil

Key Skills in Demand

  • Chief Finance Officers
  • IT Scrum Masters (Dev Team Facilitator)
  • Rewards & Benefit Specialists
  • Purchasing Managers
  • Regional Sales Managers

Market Insight

GDP rose by just over 1% in 2018, as the economy continued its slow recovery following the severe recession of 2015-2016.

The unemployment rate fell to 12.5% in 2018. However, most of the jobs created in the past year have come from the informal. This brings with it concerns about its potential to reverse the recent fall in income inequality and dilute the tax base. The appetite for hiring in the formal sector is still being hit by the lack of certainty in Brazilian politics. Jobless rates are also far higher among young people, women and Afro-Brazilians.

In the medium term, the unemployment rate is expected to gradually fall and labour productivity to slowly rise due, in part, to increased flexibility in employment contracts. GDP growth is expected to accelerate to over 2% annually over the next five years.