Brazil is home to the largest economy in Latin America and one of the largest markets worldwide, with a population of over 200 million. Despite its extreme income inequality and the noted difficulty of doing business due to bureaucracy, there is ample opportunity to invest, with many international companies choosing to establish themselves there. This article discusses the opportunities and challenges to consider when growing your business in Brazil.
The market at a glance
Size of workforce
Those who work for pay or profit for at least one hour a week, or who have a job but are temporarily not at work due to illness, leave or industrial action
104M
people
Employment rate
The ratio of the employed to the working age
55%
Education rate
% of population (25-44 yrs old) with tertiary graduation rates
13%
Cost of labour
Average wages
13.4
English proficiency index (world)
The world's largest ranking of countries and regions by English skills
#41/80
Low proficiency
English proficiency index (Latin America)
Latin America's largest ranking of countries and regions by English skills
#4/15
Low proficiency
Finding the right talent
Popular local job boards include Catho and Vagas, and international boards Indeed and CareerJet. Not all jobs are advertised online, so expect prospective job applications from candidates sent to you directly.
Things to keep in mind
All companies in Brazil must follow the principle of proportionality, meaning two out of every three of your employees must be Brazilians and earn at least two thirds of total salaries. This imposes restrictions and makes it complicated for foreign workers to enter into the labour market.
Some employment agencies and headhunters exploit the difficult job situation for foreigners by providing fraudulent offers, so conduct your research when choosing which agency to partner with.
After working for the same employer for a year, employees are entitled to up to 30 vacation days, plus eight public holidays and up to four religious holidays.
Sources:
- Total 2017 Labour force
- % of working age population
- % of population (25-44 yrs old) with tertiary graduation rates
- Mean nominal hourly earnings
- English proficiency index
- Labour laws and restrictions-1
- Labour laws and restrictions-2
- Labour laws