LUSA 02/12/2026

Lusa - Business News - Brazil: Economy would grow with more women in labour market - IMF

Washington, Feb. 11, 2026 (Lusa) - The growth of the Brazilian economy could be more robust if the number of women in the labour market increased, according to the International Monetary Fund (IMF), which warns of the need for priority reforms in the country in a report released on Wednesday.

"Our estimates suggest that halving the gap in labour force participation rates between men and women, from 20 to 10 percentage points, by 2033 could increase Brazil's growth by 0.5 percentage points per year," the report reads.

According to the IMF, "putting more people in jobs is especially important because, in Brazil, as in many other countries, the ageing population is expected to weigh on economic growth."

Presenting statistical data, this report shows that when Brazil's unemployment rate fell to 5.2% in November 2025 — the lowest in a quarter of a century — "it marked an impressive recovery after the pandemic."

However, the study notes, "while men's participation in the labour market has returned to its pre-COVID trend, women have lagged significantly behind."

Priority reforms are therefore needed, including "improving childcare, recalibrating social security benefits and reducing wage differentials."

According to the study, the need to take care of domestic and family responsibilities is one of the main reasons why many Brazilian women find it difficult to enter the labour force.

"This is especially relevant given the ongoing debate about whether Brazil's main conditional cash transfer programme, Bolsa Família, is also discouraging women from entering the labour market," the study reads.

Bolsa Família, an initiative of President Lula da Silva's government that has aimed to reduce extreme poverty since 2003, currently offers an average monthly subsidy of around US$130 (€109.55) to families who keep their children in school and comply with mandatory vaccinations and other health requirements.

This programme benefits around 50 million people — or about a quarter of the population — and was significantly expanded in 2023.

On this issue, the IMF concludes, after analysing the data, that "although Bolsa Família does not appear to systematically reduce labour force participation, transfers are associated with lower participation by women in households with children aged 6 years old or younger".

The IMF recognises that "it is important to emphasise that a complete assessment of the relationship between Bolsa Família and economic well-being would need to cover considerations that go far beyond simple labour force participation".

Another factor that may be hindering female participation in the labour market, according to the IMF, is the wage gap between men and women.

The study notes that "on average, women's monthly wages tend to be about 22% lower than men's."

This wage disparity may, according to the IMF, encourage some women, "including those receiving Bolsa Família benefits, to stay at home and care for younger children rather than enter the labour market."

According to the IMF, there are several measures that can help more women enter the labour market and support economic growth in Brazil. These include: expanding access to affordable childcare and elderly care services, along with adjustments to the parental leave policy framework; adjusting the Bolsa Família framework; addressing wage disparities, including through the effective implementation of the landmark Equal Pay Act of 2023.

Together, "these measures can promote a more favourable environment for women to enter the labour market" and thus "increase Brazil's economic potential," it concludes.

 

 

 

 

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