State of the Brazilian Labor Market
As the world looks to emerging markets to find new growth opportunities, Brazil has shone forth as a rising star. Brazil’s GDP stood at approximately $2.1 trillion in 2010. The agriculture, industry, and services sectors contributed 6 percent, 28 percent, and 66 percent of Brazil’s GDP, respectively. From 1996 until 2011, Brazil’s average annual GDP growth has been 3.26 percent, making it one of the fastest growing economies in the world. As the economy has continued to grow steadily, there has been a decrease in unemployment across the country. From 2001 until 2010, Brazil’s unemployment rate averaged 9.95 percent; and in September of 2011, the unemployment rate stood at 6.0 percent. One of the major drivers of this decrease in unemployment has been the growth of the Brazilian service sector. For the first ten months of 2011, the government registered net job creation of 2.24 million, slightly below the 2.74 million jobs registered in the same period of 2010. Due to Brazil’s strong recovery from the global financial crisis, Brazil is experiencing job growth and talent shortages in many sectors.
A recent study by the Brazilian Association of Information Technology and Communication (Brasscom) states that Brazil will need 750,000 IT professionals to keep pace with the increasing demand. This increasing demand for skilled workers cannot be filled by the low number of skilled graduates entering the workforce. According to Brasscom, the eight states analyzed by the association—São Paulo, Rio de Janeiro, Distrito Federal, Paraná, Minas Gerais, Bahia, Pernambuco and Rio Grande do Sul—will need 78,000 professionals in 2014, and only 33,000 students might graduate by that time. As can be seen from the data, it is critical for Brazil to develop a more efficient and transparent job marketplace in order to effectively allocate its human capital throughout the economy to continue to deliver strong economic growth.
 Travel Document Systems, Brazil: Economy, http://www.traveldocs.com/br/economy.htm (November 2011).
 Trading Economics, Brazil GDP Annual Growth Rate, http://www.tradingeconomics.com/brazil/gdp-growth-annual (November 2011).
 Trading Economics, Brazil Unemployment Rate, http://www.tradingeconomics.com/brazil/unemployment-rate (November 2011).
 Wall Street Journal, Brazil Job Creation Slowed In October From Year Ago, http://online.wsj.com/article/BT-CO-20111118-705947.html (November 2011).
 RCR Wireless, Brasscom: Brazil Will Be Short 750,000 IT Professionals, http://www.rcrwireless.com/americas/20111121/industry-2/brasscom-brazil-will-be-short-750000-it-professionals/ (November 2011).