Brazil productivity growth may take 30 years to offset workweek reduction

A study by the National Confederation of Industry (CNI) indicates that Brazil could take between 17 and 30 years to achieve the productivity gains required to offset a reduction in the weekly workweek from 44 to 40 hours. The study assumes that jobs and salaries would be maintained, meaning productivity per hour would need to increase by 8.3% to 8.5% to compensate for an estimated 8% drop in total hours worked.

Based on historical data from 1981 to 2024, where productivity grew by 0.5% annually, the transition would take approximately 17 years. However, using the average growth of 0.28% from the last six years, the timeline extends to nearly 30 years. CNI President Ricardo Alban noted that productivity is essential for competitiveness, investment, and worker remuneration.

The report also warns of alternative scenarios: if companies respond by cutting staff to avoid costs, formal employment could drop by over 50%. If companies substitute higher-paid workers with lower-paid staff, the national wage mass could decrease by 2.9% to 6%. International comparisons show Brazil ranks 100th globally in productivity per worker and 91st in productivity per hour, trailing significantly behind economies like Ireland, Norway, and the United States.