Labor market shifts and gig economy growth in Brazil

Brazil is experiencing significant shifts in its labor market, characterized by high turnover rates and the rapid expansion of the gig economy.

Data from the Ministry of Labor and Employment and consultancy Michael Page indicate a surge in job-hopping, with approximately 44% of workers actively seeking new opportunities. This mobility is most pronounced among younger demographics, specifically those aged 14–24. Key drivers for this trend include low salaries, long working hours, and limited professional development prospects.

Simultaneously, the gig economy has grown significantly, with the number of people working primarily through digital platforms increasing by 25.4% between 2022 and 2024 to reach roughly 1.7 million. This sector faces scrutiny regarding labor rights and safety. While offering flexibility, platform work often involves algorithmic management that critics describe as creating a ‘false freedom,’ where low income growth—only 1.2% compared to the 6.2% private sector average—forces workers into extended hours. Discussions regarding these labor relations are increasingly influenced by international standards, such as the International Labour Organization’s Convention No. 193, which focuses on the actual facts of work organization and control rather than just contractual labels.