Posted by: changholt | January 3, 2012

Does Brazil have a labor shortage?

According to Wharton’s Lauder class,  several authors pointed out  that Brazil’s labor demand outstrips its Supply.

How will that effect your Brazilian business opportunities?

they pointed out that Brazil’s shortage of qualified labor is little more than a supply-demand imbalance. With the Brazilian economy firing on all cylinders — and in the context of a legacy of dramatic government underinvestment in education — firms operating across a number of industries and sectors are demanding more skilled workers than the labor market currently offers, leading to unmet hiring quotas, increased pressure on existing employees and slower firm growth. The shortage is especially pronounced for firms in need of technicians and engineers. Given their demand for large numbers of these specialist employees, the oil and gas, real estate and aerospace industries have been hit particularly hard by the shortfall.

In particular, while many developing countries are suffering from a similar phenomenon, the labor problem is especially severe in Brazil, which recently placed third in a global ranking of countries coping with labor shortages. Indeed, according to the study, in which human resources firm Manpower interviewed more than 40,000 employers across 39 different countries, 57% of employers in Brazil are unable to find the skilled workers they need to operate their businesses. Claudio Lampert, chief legal officer of Brazilian logistics firm Grupo LLX, is one these employers. “Lack of qualified labor isn’t a problem for the future; it’s a problem we’re facing today,” he states. “At this very moment, we’re in need of an additional 3,000 employees.” This acute labor shortage has dramatic implications for Brazilian citizens, Brazilian firms, foreign job seekers and the future of the Brazilian economy in general.

So when doing business in Brazil make sure you are working with someone who has the right labor force, and/or this could be an opportunity for your company to add value when doing business in Brazil. Either way, you need to be working with someone who can navigate the waters.

For more information on this article please go to the original article


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