Worker productivity in Brazilian industry has been stagnant for decades. The level has remained well below that seen in countries with the same characteristics as Brazil and, in the last 5 years, the rate has been falling. In 2024 compared to 2023, the drop was 0.8%, according to the most recent study by the CNI (National Confederation of Industry). Here is it (PDF – 1 MB).
Among the reasons cited in studies that explain what happens are the absence of a predictable regulatory environment and high tax complexity that result in low investment stimulus. In this context, the country tends to maintain high statistical employment and low productive dynamism.
The historic low in unemployment recorded from 2025 ends up not translating into a consistent increase in production per hour worked.
For Lucia Garcia, federal counselor at Cofecon (Federal Economic Council), recent growth was based on the expansion of the use of the workforce, not on efficiency. “Absolute production grows, but production per unit of resource employed does not”he declares.
She assesses that stimulus to consumption and changes in labor rules increased employment, but did not solve the structural challenge. “What we need to increase productivity is private investment in innovation and structure, in addition to public investment in infrastructure and research”it says.
Economist Marisa Rossignoli, advisor to Corecon-SP (Regional Economic Council) and professor at the University of Marília, states that the country needs to increase productive complexity. “Without industrial production with higher added value, the economy is vulnerable to international cycles and commodity prices”he declares.
IBGE data show that workers with completed higher education receive, on average, R$6,738 per month, compared to R$2,595 for those who only completed secondary education. The general average is R$3,508. For Rossignoli, qualification is a condition for higher wages and higher productivity.
Sérvulo Mendonça, chairman of Holding SM, states that low unemployment is not synonymous with economic efficiency. “The problem is not low unemployment, it is structurally low productivity coexisting with high employment”it says.
According to the CNI (National Confederation of Industry), in Brazil, it is difficult to even maintain the current level of efficiency of workers in the sector.
Marcelo Azevedo, manager of Economic Analysis at CNI, states that the country has experienced long-term stagnation. “We haven’t seen consistent progress in industrial productivity for a long time. This limits economic and income growth”he declares.
