Inequalities Mark Formal Employment for Youth in Brazil

Formal employment integration for young Brazilians aged 16 to 29 is characterized by significant inequalities, according to the research Youth and the World of Work, conducted by Fundação Itaú with technical support from Datafolha and Instituto Lo.

What the Research Reveals

The survey indicates that, although the youth age group represents a significant portion of the workforce, their integration into formal jobs is not homogeneous. The observed differences point to regional, gender, educational level, and socioeconomic origin disparities.

Context of Formalization in Brazil

Formalizing an employment bond means the worker has a registered work card (carteira de trabalho), access to rights such as unemployment insurance, FGTS (Severance Pay Fund), INSS (Social Security) contributions, and paid vacations. In Brazil, the formalization rate varies by economic sector and region, historically being lower among young people, who often hold temporary or informal jobs.

Structural Inequalities

Among the factors that typically influence the formalization of young people, the following stand out:

• Education: Higher levels of schooling increase the likelihood of accessing formal job opportunities.
• Gender: Young women frequently face additional barriers in the formal labor market.
• Region: States with more developed economies tend to offer a greater number of formal opportunities.
• Family Income: Young people from higher-income families have greater access to networks that facilitate formal hiring.

Importance of the Survey

By identifying the inequalities that permeate youth formal employment, the research provides subsidies for public policies and private initiatives aimed at reducing informality and promoting the inclusion of young people in the formal labor market. Understanding these patterns is essential for planning training programs, incentives for hiring young people, and actions that seek to balance opportunities among different groups.

The study Youth and the World of Work reinforces the need for continuous attention to the youth employment scenario, especially in a country where young people represent an important engine for economic and social growth.

With information from Agência Brasil.