Youth unemployment has risen in Brazil
youth unemployment brazil

Youth unemployment has risen in Brazil

As industries and retailers start to hire for temporary jobs at the end of the year, Brazil registered a net 76,600 formal jobs created in October. It was the seventh straight month during which the country has registered positive numbers in the creation of in net jobs. However, Brazil has lost 294,300 jobs overall in the last 12 months.

Unemployment is worse among young workers. According to the International Labor Organization (ILO), nearly one-third of the Brazilian youth (between 15 and 24 years old) is out of a job – the worst rate since 1991. Among 190 countries analyzed by ILO, only 36 found themselves in worse situations than Brazil. Latin America’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).

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.

Labor reform

Last week, Brazil’s labor reform came into effect. Congress changed 110 articles of the country’s legal labor framework. The reform created an environment favorable to employers, but with fewer workers’ rights. According to the Ministry of Labor, the new rules should create 2M jobs over the next 2 years.

While most changes will be implemented immediately, some still require further negotiations between companies and workers. One of the reform’s most controversial points allows companies to hire people for small periods and pay them by either the hour or the day of work.

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 labor, central or otherwise to the company’s services.

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.

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MoneyNov 21, 2017

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BY The Brazilian Report

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