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Falling unemployment, rising wages: how the Brazilian labor market in 2025 is changing the economy and reducing inequalities

Written by Anna Alice
Published 05/01/2025 às 17:45
The Brazilian labor market in 2025 is key to reducing inequalities, boosting the economy and attracting investment. (Image: Reproduction/Canva)
The Brazilian labor market in 2025 is key to reducing inequalities, boosting the economy and attracting investment. (Image: Reproduction/Canva)

Falling unemployment, rising income and expanding sectors! The job market in 2025 promises to transform the Brazilian economy and attract investors. Discover the impacts of this economic revolution, regional challenges and the role of technology in the future of employment.

In a Brazil that seeks stability amid a challenging economic scenario, the labor market promises to be the point of balance for 2025.

With unemployment falling and key sectors growing, experts point out that the workforce will play a crucial role in building a economy more robust and inclusive.

Falling unemployment and economic recovery

Brazil ended 2024 with an unemployment rate of 6,1%, the lowest in more than a decade, according to data from the Brazilian Institute of Geography and Statistics (IBGE).

This means that 6,8 million Brazilians were unemployed, a reduction of 1,4 million compared to the previous year.

According to experts, the economic recovery was driven by the expansion of sectors such as commerce and construction.

These segments not only generated new jobs, but also boosted consumption and confidence in the market.

“When unemployment is low, there is an increase in income, which generates a positive impact on the entire production chain”, says Euzébio de Sousa, economics professor at FESPSP, in an interview with UOL News.

The impact on combating inequality

The growth of the labor market is not limited to job creation. It is also a powerful instrument for reducing poverty and social inequalities.

As Sousa points out, the improvement in occupation generates a virtuous cycle: an increase in family consumption, more activity in retail and, consequently, a greater need for investment by companies.

Data from IBGE shows that formal employment grew by 3% in 2024, which represents greater security and labor rights for millions of Brazilians. For economists, this is essential to ensure greater social equity.

Stability that attracts investors

With a booming job market, investor confidence also increases. “Companies see a promising future when there is an increase in employment and income. This stimulates new investments,” explains Sousa.

According to data from the Central Bank, gross fixed capital formation grew 5% in 2024, marking an advance in companies' production capacity.

This index reflects the expansion of industries and the construction of infrastructure, such as new industrial parks and logistics systems, which are essential to meet growing demand.

The role of education in the labor market

Education is a determining factor in strengthening the job market. According to studies by the Institute of Applied Economic Research (IPEA), qualified labor has a greater capacity to contribute to economic growth and to reducing social inequalities.

In 2024, Brazil recorded important advances in training programs, such as Pronatec and Novos Caminhos, which reached more than 1,5 million Brazilians.

However, challenges remain. The functional illiteracy rate among adult workers is still high, reaching 20%, according to a report by IBGE.

This compromises not only productivity, but also the ability to adapt to new technologies, which are increasingly in demand in the market.

Brazilian regions: disparities and opportunities

The impact of the labor market varies significantly across Brazil’s regions. While the Southeast leads in formal job creation, the Northeast faces more significant challenges due to lower industrialization and high dependence on the agricultural sector.

However, the growth of technology hubs in the Northeast, such as Porto Digital in Recife, demonstrates that there is potential for regional economic transformation.

The creation of jobs in the information technology industry has contributed to retaining local talent and reducing the exodus of professionals to the Southeast.

Public policies are essential

Despite the progress, Brazil still faces significant challenges. According to the International Labor Organization (ILO), 38% of the economically active population is still in the informal sector, a problem that directly impacts tax collection and workers' rights.

“Investing in education and professional qualifications is crucial to sustaining the growth of the job market”, argues Sousa.

In September 2024, the federal government announced the Qualifica Brasil Program, which promises to train 3 million workers in areas such as technology and civil construction by the end of 2025.

International scenario and internal risks

The global economy also influences the Brazilian labor market. In 2024, the International Monetary Fund (IMF) predicted global growth of 2,9%, a moderate pace that presents risks for emerging countries. However, the diversification of Brazilian exports has helped to mitigate these impacts.

Domestically, inflation is still a concern. Although controlled at 4,6% in 2024, according to the Central Bank, it could compromise purchasing power if wages do not keep up with rising costs.

The role of technologies and digital transformation

The incorporation of advanced technologies into the job market has generated both opportunities and challenges.

Automation and artificial intelligence are redefining traditional roles, requiring workers to be more skilled.

According to the National Confederation of Industry (CNI), 62% of Brazilian companies intend to invest in digitalization by 2025, which could increase the number of jobs in sectors such as information technology, engineering and logistics.

On the other hand, there is a risk of an increase in unemployment structural changes for less qualified workers. Experts warn that public policies must be implemented to ensure the training and relocation of these professionals in new positions.

Rising Sectors: Where Does the Future of Work Lie?

Sectors such as technology, renewable energy and agribusiness lead growth expectations for 2025. Brazil has stood out as one of the world's leading food exporters, and advances in technologies applied to agriculture, such as drones and smart irrigation systems, are transforming the sector.

In the energy sector, the country is also in a prominent position. The increase in investments in wind and solar farms, especially in the Northeast, has generated thousands of jobs.

Data from Absolar indicates that the photovoltaic solar sector created more than 120 thousand jobs in 2024, with expectations of expansion until 2025.

Finally, the information technology sector continues to expand, with a high demand for qualified professionals. Brazilian startups are on the rise, attracting international investment and promoting innovations that have a global impact.

A market of opportunities and challenges

Although the labor market in Brazil has shown significant progress, there is still much to be done. Reducing inequalities, qualifying the workforce and adapting to new technologies are just some of the areas that require attention.

With the right policies and the engagement of all sectors of society, 2025 can be a year of great transformation.

How do you think Brazil can better take advantage of these opportunities?

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Anna Alice

Copywriter and content analyst. She has been writing for the website Click Petróleo e Gás (CPG) since 2024 and specializes in creating texts on diverse topics such as the economy, jobs and the military.

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