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Sustaining Employment and Wage Gains in Brazil



Brazilian labor markets have performed remarkably well in the past 15 years. This performance has been the main driver of reductions in poverty and inequality

Consolidating gains depends on achieving two critical goals:

  • Raising labor productivity
  • Connecting the poor to more and better jobs

The current economic scenario highlights the importance of focusing on these goals. Achieving these goals require:

  • Strong labor demand (economic growth stimulating creation)
  • A good match between supply and demand. In addition, investments in the supply side are needed to strengthen the skills and employability of the labor force

Brazil has shown important results in employment policies, technical education, and productive inclusion. Moving forward, incremental reforms are needed:

  • Information systems and management models that measure results by tracking final labor market outcomes (an increase in employability and earnings)
  • Improving articulation with demand, strengthening access to apprenticeships, and a focus on job insertion/search
  • Connect, adapt skills and jobs policies to the profile of the poor, and address non-technical employability barriers of the poor