Portuguese 
English 
Spanish 
6 min of reading 
0 comments 
Hiring rises at an accelerated pace in the services sector, while shorter contracts increase replacement costs, pressure companies, and place professional retention at the center of the labor dispute.
The Brazilian job market, especially in the services sector, is experiencing an increase in hiring and a reduction in the length of time workers stay in formal jobs.
A survey by the FecomercioSP Services Council shows that between February 2021 and February 2026, the volume of admissions advanced by about 80%, while the Average Length of Stay in employment fell by 27% in the country.
The indicator did not fall to 6.8 months.
-
Chinese giant chooses SC to set up its first factory in Brazil, investing R$ 250 million and producing MRI machines costing R$ 10 million each, with 100 direct jobs and 5% of revenue allocated to research.
-
After selling a unit for R$ 115 million to pay off debts, a traditional factory in SC founded in 1932 has a new R$ 64.8 million plan denied by the court and retains about 690 workers in Joinville.
-
Use of slimming pens skyrockets in Brazil, surpasses the global average, and causes unexpected changes in consumption habits, diet, beauty, and the wellness market.
-
Itaú shuts down service, lays off 350 employees, and creates internal tension after closing an operation created just 10 months ago; employees report pressure for targets, system failures, and extra costs to serve customers.
According to FecomercioSP, the drop was 6.8 months in Brazil during the analyzed period.
The data indicates shorter contracts and a greater need for companies to replace professionals, especially in activities that depend on in-person labor.
In this context, the central issue is no longer just hiring.
According to available data, the main pressure point is retention, as the entry of new workers occurs at a high pace, but the average stay in employment has decreased.
For companies, this movement increases the frequency of selection processes, training, and adaptation stages.
Services sector concentrates the greatest pressure on formal employment
The services sector has significant weight in the Brazilian economy.
According to FecomercioSP, it accounts for 57% of the country’s formal jobs and is responsible for about 70% of the Gross Domestic Product.
For this reason, changes in hiring and retention dynamics tend to produce effects on different segments of economic activity.
In São Paulo, the sectors with the greatest increase in admissions were precisely those most dependent on operational teams.
Accommodation and food services recorded a 159.4% increase in hiring during the analyzed period.
Other services advanced by 112.8%, while transport and storage grew by 81.9%.
The increase in hiring, combined with the decrease in the average length of stay, increases the circulation of workers between companies.
According to FecomercioSP, this scenario raises operational costs, requires continuous investment in training, and affects productivity, especially in businesses that need to quickly replenish teams.
Frequent changes of professionals can also generate indirect effects on the routine of companies.
Gallup estimates that the cost of replacing an employee can range from half to twice the worker’s annual salary.
The consultancy treats the data as a general estimate and emphasizes that the impact depends on the position, the profile of the role, and the context of the organization.
Low unemployment increases competition for workers
The competition for workers occurs in an environment of lower unemployment than observed in previous years.
According to IBGE, the unemployment rate was 5.8% in the quarter ending in April 2026.
In the same period, the average real habitual income was R$ 3,732.
This scenario increases the power of choice for some workers, according to FecomercioSP’s evaluation.
The study points out that the reduction in the length of stay occurred across different age groups, but was more intense among professionals aged 50 to 64, the group that showed the largest drops in absolute and relative terms.
The entity associates this movement with greater mobility in the labor market.
Marcelo Braga, president of the Services Council of FecomercioSP, stated that, “today, more than hiring, the entrepreneur needs to think about how to retain.”
According to him, “the market is more dynamic and professionals circulate more.”
The evaluation indicates a change in the profile of labor relations, with shorter links and more frequent transitions between occupations.
For service companies, this dynamic interferes with team planning, operational predictability, and the calculation of the total cost of each hire.
Talent shortage remains at a high level in Brazil
Turnover adds to another indicator monitored by the market: the talent shortage.
Research by ManpowerGroup shows that 80% of employers in Brazil reported difficulty finding professionals with the necessary skills in 2026.
The global average was 72%.
The survey interviewed more than 39,000 employers in 41 countries, including 1,020 interviews in Brazil.
In the recent series, the Brazilian index fell to 34% in 2018, rose to 71% in 2021, and reached 81% in 2022.
Since then, it has remained close to 80%, with 80% in 2023, 80% in 2024, 81% in 2025, and 80% in 2026.
ManpowerGroup attributes this situation to the mismatch between the skills available in the market and the demands of companies.
The study also points out that the transformation of required skills, digitalization, and the search for hybrid profiles are among the factors associated with hiring difficulties.
In 2025, the largest gaps cited by employers in Brazil were in IT and data, with 39%, customer service, with 29%, and marketing and sales, with 21%.
The sum exceeds 100% because each employer could indicate more than one area.
Salary, training, and productivity are part of the companies’ expenses
Compensation also follows this competitive environment for professionals.
In the quarter ending in April 2026, the average real regular income from all jobs reached R$ 3,732, with a growth of 5.3% compared to the same period in 2025, according to IBGE.
In the annual comparison, the group of other services recorded an increase of 9.7% in the average monthly real income.
Accommodation and food services saw an increase of 7.5%, while transportation, storage, and mail advanced 5.1%.
The data shows income pressure in areas related to the service sector, although IBGE does not attribute these increases, in isolation, to turnover.
For employers, the combination of higher salaries, scarcity of professionals, and shorter contracts changes the cost of the workforce.
In this view, the expense is not limited to the payroll but includes recruitment, integration, training, and the period until the new hire is fully adapted to the role.
FecomercioSP states that increased turnover requires continuous investments in training and affects productivity.
Gallup, in turn, associates employee replacement with direct and indirect costs, including expenses that do not always appear separately in company statements.
Employee retention becomes part of companies’ strategy
In light of the data, retention has been treated by consultancies and business entities as a management variable, not just a human resources indicator.
This approach involves compensation, working hours, benefits, leadership, training, internal opportunities, and working conditions.
In Brazil, 44% of employers surveyed by ManpowerGroup in 2026 said they prioritize upskilling and reskilling current employees as a strategy to address the talent shortage.
Another 25% mentioned the search for new talent groups, 23% mentioned greater location flexibility, and 21% pointed to more flexible hours.
These responses indicate that some companies are trying to reduce their dependence on external hires by developing professionals already within the organization.
At the same time, the search for new talent groups and more flexible work models shows an attempt to broaden the reach of job openings.
Smaller companies can adjust routines and internal policies with fewer decision-making steps, while larger organizations have the scale to structure training, mobility, and development programs.
This difference does not guarantee results, but it changes how each business can respond to the difficulty of retaining and hiring.
Turnover affects the planning of service companies
Turnover usually appears in a fragmented way in companies.
Part of the cost arises in recruitment, another part appears in training, and a third portion manifests in productivity during the adaptation of the new employee.
When these effects are analyzed separately, the total impact may become less visible.
Data from FecomercioSP shows that the average job tenure decreased precisely during the period when admissions increased.
This combination indicates a more active market, but also more unstable for company planning.
For service businesses, the challenge lies in reducing the permanent need for replacement without interrupting the hiring of new workers.
The position filled today may be reopened in a shorter time than in the past, and this shorter interval changes the economic calculation of each admission.
Be the first to react!