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In Brazil, A Crisis In The Labor Market Is Leaving Companies With Open Positions While Many Prefer Informal Work. With Low Unemployment Rates, The Economy Shows A Change In The Profile Of Workers.
Brazil is facing an intriguing paradox in the labor market: while numerous job vacancies arise, the difficulty in filling these positions increases day by day. The information is from the portal Zero Hora.
This phenomenon is particularly evident in Rio Grande do Sul, where companies report a growing shortage of workers willing to take formal jobs.
Amid this reality, many Brazilians choose informality, drawn by promises of higher income and greater flexibility in daily life.
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Informal Work Is Growing and Attracting More Brazilians
Marco Antônio Ebel, a resident of Esteio in Rio Grande do Sul, is an example of how new work possibilities have transformed the lives of many people.
At 32 years old, he switched from a butcher position in a supermarket, governed by CLT, to become a ride-hailing driver and delivery person.
Currently, Ebel works between 10 and 12 hours a day, usually without days off during the week, but for him, the earnings are justifiable.
“For me, this issue of having practically double the income every month, and sometimes more, ends up compensating for not having vacation and paid time off”, comments Marco Antônio.
He represents a new generation of workers who, instead of seeking formal jobs, venture into the informal market, seizing opportunities created by technology, such as ride-hailing apps and e-commerce platforms.
The Unemployment Rate Is Low, But The Search For Formal Work Is Decreasing
Brazil, in 2024, recorded an unemployment rate of 6.6%, the lowest since 2012.
In Rio Grande do Sul, this rate was even lower, reaching 4.5%.
At first, this could suggest a positive scenario, but the difficulty companies face in finding candidates for their formal positions reveals another side to the story.
According to experts, the labor shortage is directly linked to the fact that many workers prefer to operate informally, where they find more flexibility and, often, higher pay than what is offered in formal positions.
According to Rodolpho Tobler, an economist and researcher at FGV Ibre, the current unemployment rate is maintained, in part, by many Brazilians’ decision not to seek formal jobs.
“This voluntary informality, and not out of necessity, ends up helping to keep the unemployment rate low, as the worker stops looking for formal work”, states the specialist.
Technological Innovations as Drivers of Informality
The evolution of technology, especially ride-hailing apps and commerce on digital sales platforms, has been crucial for the increase of informality in the labor market.
According to data from the Continuous National Household Sample Survey (Pnad Contínua) from IBGE, approximately 6 million people are employed in Rio Grande do Sul, with 1.9 million of them in the informal market.
Between 2021 and 2024, the number of informal workers grew by 20.5%, while formal jobs increased by 10.3%.
Informal Workers Seek Higher Earnings But Face Challenges
Although informality has attracted many workers in search of higher pay than what is offered in formal markets, the salary difference between the two types of employment has been decreasing.
In 2019, a formal worker earned, on average, 40% more than an informal one.
However, by the end of 2024, this difference had fallen to 19%.
Data from IBGE confirms that although the average salary of informal workers in Rio Grande do Sul is lower, this difference has been decreasing over the years, especially in sectors with lower professional qualification.
For Rodolpho Tobler, this choice for informality is especially appealing for less qualified workers, who have difficulty finding growth opportunities in the formal market.
“Informal workers often receive a monthly amount that exceeds what they would earn as formal workers, compensating for the lack of social protection”, explains the economist.
Profile of Informal Workers: Education and Qualification Impact Choice
The Pnad Contínua reveals that informality in the labor market is more frequent among individuals with lower education levels.
In the last quarter of 2024, 42.3% of workers with completed elementary education were informal.
This rate dropped to 26.8% among those with completed high school and to 17.4% among those with higher education.
This data shows that the higher the qualification, the lower the probability of the worker opting for informality.
Changes in Labor Relations After The Pandemic
The work scenario in Brazil has also changed due to a transformation in the relationships between employer and employee, especially after the Covid-19 pandemic.
The search for greater flexibility and autonomy has led many workers to prefer work models that allow more freedom of schedule, such as ride-hailing drivers and freelancers who manage their own businesses on social media.
“I can be available any time of the day and, if necessary, make up for it at night. This makes things much easier, especially for those with small children who need to be taken to school or the doctor”, explains Marco Antônio Ebel, who, in addition to being a driver, is a delivery person.
The pandemic accelerated this change in worker behavior, who now values the ability to better manage their time and personal life.
Returning to The Formal Market: The Desire for Stability
Despite the advantages of informality, some workers choose to return to the formal market in search of benefits such as stability and social protection guaranteed by the CLT.
Jaime Machado, from Porto Alegre, is an example of this.
Aride-hailing driver for four years, he is taking a technical nursing course to qualify and seek formal employment, hoping to secure rights such as vacation, medical leave, and the security of a fixed salary.
“I want to know that if I get sick and can’t work for a day, I will still be receiving, and also have the possibility of resting with my family, without having to work 10 hours a day like I do now”, emphasizes Jaime.
What Can Companies Do To Attract Formal Workers?
The Brazilian Association of Human Resources of Rio Grande do Sul (ABRH-RS) points out that companies need to adapt to attract workers back to the formal market.
According to Pedro Fagherazzi, president of the association, it is essential for companies to highlight the benefits of the CLT, such as job stability and career progression opportunities.
“Reinforcing the benefits of a signed work card and investing in salaries above the minimum wage, professional qualification, and promotions within the company are essential strategies to attract these workers”, emphasizes Fagherazzi.
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