Ricardo Alban, president of the National Confederation of Industry (CNI), recently voiced significant apprehension regarding ongoing discussions about ending Brazil’s traditional 6×1 workweek model. Speaking on Wednesday, Alban emphasized that any alteration to the current work schedule, without a thorough consideration of the nation’s already low productivity rates, risks severely compromising Brazil’s economic trajectory for the coming years.
Brazil currently grapples with some of the world’s lowest labor productivity metrics, a critical factor that Alban insists must underpin any policy debate on working hours. Data presented highlights a stark reality: the average growth in productivity per worker across Brazil has been a mere 0.2% annually, escalating slightly to 0.5% per hour worked between 1988 and 2024.
This sluggish performance positions Brazil precariously on the global stage. According to metrics from the International Labour Organization (ILO), the country ranks 100th in productivity per worker and 91st in productivity per hours worked, despite maintaining its status as the tenth-largest economy worldwide. This discrepancy underscores a systemic challenge that goes beyond mere working hours.
Productivity concerns loom over potential 6×1 workweek changes
Alban directly linked Brazil’s economic future to this productivity dilemma, stating that hasty changes could “compromise the future” of the nation. The CNI’s stance is that social gains, while desirable, must be achieved through meticulously planned procedures that align with specific economic metrics, not in isolation.
The CNI president stressed that Brazil’s productivity performance remains a critical bottleneck. Historical data confirms a long-standing challenge, where output per worker grows minimally, making it difficult for the economy to absorb increased costs or reduced working hours without significant repercussions.
This poor showing in global productivity rankings suggests a deeper structural issue within the Brazilian economy. Even as a top-tier global economy, its efficiency per capita and per hour worked lags far behind, indicating that simply reducing the workweek without addressing underlying causes could exacerbate existing problems rather than solve them.
Small and medium enterprises at the forefront of impact
One of the most pressing concerns highlighted by Alban is the disproportionate impact a shift from the 6×1 scale would have on small and medium-sized enterprises (SMEs). These businesses are the backbone of the Brazilian economy, collectively accounting for a substantial 52% of the country’s total workforce capacity.
An IPEA (Institute of Applied Economic Research) study, cited by Alban, reinforces this warning, indicating that SMEs would bear the brunt of increased operational costs and logistical challenges. The question arises of how these businesses, often operating with tighter margins and less flexibility, could absorb the reduction in work hours while maintaining current salary levels, potentially leading to job losses or reduced competitiveness.
Navigating the labor market and social programs
Alban also questioned the practicalities of managing the labor force in a scenario of reduced work hours, even if salaries were to remain constant. He pointed out that certain regions of Brazil already experience near full employment, suggesting that simply reducing hours wouldn’t automatically free up a readily available workforce to fill gaps or expand operations.
Furthermore, the CNI president drew attention to the societal paradox in some Brazilian states, where the number of individuals enrolled in social welfare programs surpasses those holding formal employment. This situation, he argued, necessitates a prior focus on comprehensive requalification programs to equip this contingent with market-relevant skills and facilitate their entry into formal sector jobs.
The challenge extends beyond mere job creation; it involves matching skills to demand. Without a robust strategy for professional development and integration, a reduction in the workweek could leave a significant portion of the population on the sidelines, further widening the gap between those in formal employment and those relying on social assistance.
This complex interplay of labor supply, skills mismatch, and social welfare dependence requires a nuanced approach. Alban suggested that any major policy shift, such as altering the foundational workweek, must be part of a broader socio-economic development plan, rather than an isolated measure.
Broader economic considerations demand responsible debate
The productive sector is not opposed to discussion, Alban asserted, but advocates for a debate founded on sound economic premises. He emphasized the importance of discussing “how we can make a procedure of social gains with certain metrics,” ensuring that social advancements are sustainable and do not undermine the nation’s economic stability. Key factors such as Brazil’s substantial public deficit, where personnel expenses represent a significant burden, and the inherent inefficiencies within the public service sector, must be integral to any comprehensive dialogue. Alban underscored that a balanced approach is crucial to avoid unintended negative consequences on an already fragile economic landscape, urging policymakers to consider the long-term implications for the entire productive ecosystem before implementing sweeping changes to the workweek.
Public service efficiency and workforce challenges
Alban specifically questioned the feasibility of expanding the public workforce in response to reduced work hours, given existing inefficiencies. He asked, “How are we going to cover it if we clearly have identified that public service in this country is not sufficient, is inefficient?”
This query highlights a significant dilemma: if the existing public sector cannot meet current demands efficiently, how would an increase in personnel, potentially necessitated by shorter workweeks, be managed or even funded without further straining public finances?
The path forward for sustainable social gains
The CNI maintains that any pursuit of social gains must be anchored in practical, measurable processes. It calls for a framework where social improvements are carefully balanced against economic realities, particularly the nation’s fiscal health and its capacity to absorb new costs.
Such an approach would require meticulous planning and a clear understanding of the economic ripple effects. The goal should be to achieve meaningful social progress without inadvertently stifling economic growth or creating new structural problems for businesses and the labor market.
Ultimately, Alban’s message underscores the need for a comprehensive and strategic debate, moving beyond a simplistic view of workweek reduction. The focus, he argued, must be on developing policies that foster both social welfare and economic resilience, ensuring a sustainable path for Brazil’s future.
