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Rio Grande do Sul Faces A Severe Labor Shortage, Affecting Industry and Commerce. Sectors Such as Civil Construction and Footwear Production Suffer from High Turnover and Difficulty Attracting Qualified Professionals.
In a scenario that has left entrepreneurs from various sectors on high alert, the shortage of skilled labor is beginning to critically impact the economy of Southern Brazil.
The difficulty in finding professionals for essential positions in industry, civil construction, and commerce not only affects production but also raises operational costs and imposes a slower pace on businesses. Although the problem had already been visible in recent years, it has worsened, according to recent data.
According to the Federation of Industries of the State of Rio Grande do Sul (Fiergs), the third quarter of 2024 brought concerning data: approximately 27% of industrial entrepreneurs in the state declared that the lack or high cost of skilled workers is one of the main difficulties for the continuity of operations.
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This is the highest rate recorded since 2014, reflecting the worsening of this situation and placing the state on high alert.
Strategic Sectors Face Crisis
According to the newspaper Zero Hora, civil construction is one of the most affected areas by the lack of professionals.
With high turnover and employment rates at elevated levels, companies find it difficult to retain qualified workers in technical areas, such as finishing and electrical installation, which are essential for the progress of construction projects.
According to the president of the Union of Industries of Civil Construction of Rio Grande do Sul (Sinduscon-RS), Claudio Teitelbaum, the situation is so intense that many workers are being contested among companies in the same industry, leading to a wage escalation and further encouraging job switching in search of better conditions.
Within construction companies, the roles of masons, carpenters, and finishing specialists have been the most affected, with a significant increase in costs.
The engineering director of Cyrela Goldsztein, Gustavo Navarro, highlighted that the salary of a masonry mason, for example, has increased by 30% in the last two years, evidencing the weight of this shortage on the sector.
Companies like MRV are also facing similar hurdles, especially in specialized activities like painting and plumbing, which are crucial for project completion.
The chief economist of Fecomércio-RS, Patrícia Palermo, further points out that commerce also faces challenges with a lack of candidates for temporary positions, especially during peak retail periods.
According to Palermo, many workers are unwilling to take on temporary commitments or flexible hours, which restricts opportunities for retail and creates a disconnect between job availability and the demand for professionals.
Reasons for the Labor Shortage
According to experts, high turnover and the constant search for better salary conditions are factors contributing to this labor shortage.
Qualified workers, especially younger ones, do not show the same loyalty to companies as was observed in previous generations.
Today, many prefer to change jobs, fields, or even regions in search of new opportunities and challenges, a behavior that entrepreneurs and managers say is encouraged by wage competitiveness.
According to economist Maria Carolina Gullo, a professor at the University of Caxias do Sul (UCS), the heated labor market creates a turnover cycle that drives up the cost of “human capital” in the state.
“These new generations are not afraid to change careers and seek competitive compensation or even personal satisfaction,” explains Gullo, highlighting that the difficulty in retaining young workers is one of the major obstacles facing the sector.
This phenomenon leads many companies to spend even more on salaries and benefits to attract and retain qualified professionals.
Additionally, the demographic changes in Rio Grande do Sul also play a crucial role in this process.
According to the president of Fiergs, Claudio Bier, the state’s population is aging more rapidly than the national average, which reduces the number of young people available in the labor market.
He stated that the lack of effective programs to attract young individuals from other states and the prevalence of social assistance, which discourages formal work, are additional barriers for the productive sector of the region.
Small Businesses and the Impact of Labor Shortages
Another relevant factor is that the shortage affects primarily small businesses.
Fiergs points out that 36.1% of small enterprises face difficulties due to the lack of skilled labor, putting them at a disadvantage in competing for professionals.
In contrast, medium and large companies experience fewer retention problems, as they can offer better compensation packages and benefits, although they also feel the weight of increased costs to attract workers.
In the footwear sector, the situation is similar. Shoe manufacturing companies report difficulty filling technical positions, especially for sewing roles.
According to the executive president of the Brazilian Footwear Industry Association (Abicalçados), Haroldo Ferreira, the lack of qualified professionals could jeopardize the production of items aimed at next year, putting the sector’s ability to meet future demands at risk.
The Future of the Labor Market in the South
To tackle these challenges, the state government, together with Fiergs and other entities, has been discussing the creation of economic development strategies.
Among the proposals are investments in professional training programs and incentives to attract young people to industry and civil construction, as well as policies to encourage the retention of local workers in the formal market.
The goal is to combat turnover and facilitate entrepreneurs’ access to a stable and qualified workforce.
Given this scenario, the question remains: Will Rio Grande do Sul be able to reverse the situation of lacking qualified labor and ensure the competitiveness of strategic sectors?
Quero trabalhar com vcs
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