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Brazil Loses R$ 1 Trillion A Year Due To Job Transitions, Says Pearson. Research Suggests Urgent Actions To Combat Structural Unemployment.
Brazil loses R$ 1 trillion a year due to job transitions, says Pearson, and the survey shows that this loss primarily occurs because of the difficulty of re-employing professionals after they leave a job.
The study points out that the problem happens because workers take longer to reintegrate into the market, highlighting failures in the learning, qualification, and adaptation processes to new professional demands.
According to the report Lost In Transition, Brazil showed the highest proportional loss among all observed regions.
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Brazil Loses R$ 1 Trillion A Year Due To Job Transitions, Says Pearson
Pearson’s research shows that R$ 1.08 trillion are not generated in the country annually due to failures in the three studied stages of the labor cycle.
Among them, the most critical is the transition from one job to another, responsible for R$ 701 billion of this.
This number places Brazil at the top globally in inefficiency during the re-employment process. The country averages 42 weeks for a worker to find a new job.
By comparison, the time is more than double that observed in Canada (18 weeks) and significantly higher than in the United Kingdom (32 weeks).
Thus, Pearson estimates that reducing this interval by just 20% could generate an additional gain of R$ 140 billion a year, boosting productivity and accelerating economic growth.
Discrepancy Between Education And Market Hinders Reemployment
According to Cinthia Nespoli, CEO of Pearson in Brazil, the problem is structural and involves a historical misalignment between professional training and the demands of companies and productive sectors.
“When we look at the result, we can see that there is a discrepancy between what education and markets provide to companies versus what the economy demands”, Nespoli states.
Furthermore, the executive highlights another critical point: one fifth of young people aged 18 to 24 do not work or study. This group, known as “neither-nor,” undermines the country’s growth potential precisely because they represent an essential portion of the future workforce.
Automation Deepens Losses And Pressures Sectors
The report also reveals that automation is responsible for R$ 241 billion of the annual losses—about 22% of the total.
Although this impact is still smaller than that generated by job transitions, it is expected to grow in the coming years.
The research warns that 32% of jobs in Brazil are at high risk of being replaced by automated technologies.
Nespoli emphasizes that the country can anticipate movements of other nations to avoid greater losses:
“We already know what led to greater losses in other economies; we are at a point of technological maturity that provides the opportunity to prepare better.”
From Education To Work: Impact Over A Lifetime
Although it has a smaller weight in the total loss, the transition from education to the first job is also concerning.
According to Pearson, failures at this stage compromise not only the start of a career but the entire professional trajectory and future earnings.
The lack of integration between educational institutions and the market ends up widening inequalities and reducing labor productivity.
Therefore, public policies for guidance, training, and access to work become even more urgent.
Recommendations To Reduce Billion-Dollar Losses
The study Lost In Transition concludes that Brazil needs to act on two priority fronts to reverse the situation in which Brazil loses R$ 1 trillion a year due to job transitions, says Pearson:
1. Combat Structural Unemployment
The research recommends creating professional matching, retraining, and quick re-employment programs capable of reducing the time between leaving and entering new positions.
2. Prepare The Economy For Automation
Pearson argues that the country cannot wait for automation to become the main source of disruption. Proactive preparation—with investment in technology, training, and public policies—is essential to avoid even greater losses.
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