Carnival time in Brazil’s job market

The battle to stimulate economies and bring life back to a moribund jobs market across the UK and Europe is a far cry from Brazil’s red hot jobs market. Unemployment keeps falling and has reached a low of 5.5%, impressive in a country where unemployment was consistently in double digits through 2006 and in which high levels of weak schooling and high drop-out levels produce a low quality workforce. Salaries are positively hopping. Construction workers saw average wage raises of 11.79% in 2011.

But it’s at the executive level that the prizes are juiciest. Shortages are particularly acute at the top end of the work pyramid thanks to Brazil’s weak education system and insufficiency of places. The combination of a huge and generalised logistics upgrade, covering everything from railways, roads, ports, sanitation and water and energy, together with the much-delayed and now urgent works for the World Cup (2014) and Olympics (2016) has led to an explosion of demand for professionals across Brazil. Engineers and IT personnel are at a particular premium. Tales of unseemly fights and ruses by corporate executives to get their hands on graduates before they discover their true worth are emerging.

The numbers are mind boggling. According to Claudia Safatle of Valor, Brazil needs 350,000 engineers for the next three years. Universities will produce a fraction of that at just 60,000. It’s a similar story in IT where companies will be fighting over the 34,000-35,000 graduates to fill an estimated 80,000 roles.

It’s even prompting Brazil to consider, at least temporarily, loosening restrictions on foreign workers with talk of a new short-term, probably five-year, work visa. This could mark a new wave of post-war European immigration to Brazil. Welcome to the huddled masses.

About admin

I've been researching and writing on Brazilian financial markets, industry and economy since 2006 for a wide range of specialist media, consultancies and investors. Before that I spent over 10 years in London and New York writing for and editing magazines and journals dedicated to finance, investment and economics in developing markets, mostly for the Euromoney Institutional Investor group and Thomson Financial. Areas of coverage Below are samples of areas that I cover and some of the common themes that I investigate. Capital markets BM&FBovespa markets *capital raising trends: via equities (IPOs and secondary issuance), debt and loans *the asset management industry: legislation and coverage of the key hedge, pension and investment funds * corporate governance: how the regulator is seeking to strengthen best practice and limitations * debt markets: the nascent corporate markets, attempts to boost liquidity and new insturments. * private equity market: why this market has been so successful, who’s involved. *electronic, high frequency trading and alternative trading platforms: what does the future hold? Banking *credit: the growth of consumer and business credit and competition between banks and models *Public versus private: the role and market share of public and private sector banks and the politicization of the industry * internationalization: which Brazilian banks are expanding overseas and where * investment banking: the growth of the domestic market and who’s winning which mandates *regional banks and development banks: what role they play in the industry and how they compete Mining *licensing: the complex process of obtaining environmental, water, land and operating licenses at a state and federal level. * capacity: the feasibility and sustainability of capacity increases * financing: how miners are raising finance in Brazil and abroad *competition: the interplay Vale, MMX and junior miners *logistics: rail, road and port connections Oil and gas: the fund raising issues related to the massive of pre-salt (link) Multilatinas: Who are they and how and where they are expanding Meatpacking: Are debt burdens sustainable, what are the different business models for areas such as branding and distrbution Agriculture: How are farms consolidating, what are environmental risks, how can foreign investors be involved. IT and software: Can Brazil take on India and build a viable long-term IT industry? For more information on clients and work, please see the media and consultancy sections.
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