Brazil creates jobs, but youth unemployment is rampant

</p> <p>Unemployment is worse among young workers. According to the International Labor Organization (<a href="http://www.defenddemocracy.press/ilo-report-global-youth-unemployment-rise-first-time-three-years/">ILO</a>), nearly one-third of the Brazilian youth (between 15 and 24 years old) is out of a job &#8211; the worst rate since 1991. Among 190 countries analyzed by ILO, only 36 found themselves in worse situations than Brazil. Latin America&#8217;s biggest economy has rates of youth unemployment similar to countries ravaged by wars and tragedy, like Syria (30.6 percent) and Haiti (34 percent).</p> <p>In Brazil, 14.3 percent of young workers were out a job in 1991. Now, that rate is at 29.9 percent; it should remain stable in 2018, with a slight reduction to 29.8 percent. The world average for unemployment among young workers is at 13.1 percent.</p> <h3>Labor reform</h3> <p>Last week, Brazil&#8217;s labor reform came into effect. Congress changed <a href="https://brazilian.report/2017/11/08/labor-reform-brazil-changes/">110 articles</a> of the country&#8217;s legal labor framework. The reform created an environment favorable to employers, but with fewer workers&#8217; rights. According to the Ministry of Labor, the new rules should create 2M jobs over the next 2 years.</p> <p>While most changes will be implemented immediately, some still require further negotiations between companies and workers. One of the reform&#8217;s most controversial points allows companies to hire people for small periods and pay them by either the hour or the day of work.</p> <p>The reform also allows companies to outsource any kind of labor. Previously, companies were only able to outsource “non-core” activities such as security or maintenance. However, a new law approved by Congress liberates outsourcing to any kind of <span class="il">labor</span>, central or otherwise to the company’s services.</p> <p>For example, a hospital may have previously outsourced its security or cleaning staff, but now it could even potentially outsource doctors and nurses – positions that were hired directly by the institution.