A proposal to reduce the maximum working hours in Brazil from 44 to 36 hours a week could shrink the GDP by 6.2%, though unions believe the losses will be offset by increased consumption and productivity.
A proposal to cut the maximum workweek in Brazil from 44 to 36 hours has gained traction due to a movement advocating for labor rights. This change is projected to reduce the country's GDP by 6.2%, as indicated by studies from FGV-Ibre and Ipea, which highlight labor as a critical production factor. While this reduction poses risks to economic output, labor unions argue that the measure is essential in light of excessive labor exploitation and may lead to a boost in consumption, innovation, and overall productivity.
Furthermore, the transition to a shorter workweek could increase the cost of labor by 22% for those currently under the 44-hour limit. The average wage across all formal employment contracts could rise by 17.6%, while the total operational costs for businesses may not increase significantly, particularly in labor-intensive sectors. These financial implications are crucial for the ongoing debate regarding the balance between worker rights and economic efficiency.
The discussion comes at a time when labor unions are pressing for better working conditions and a reduction in exploitative practices. Advocates for the shorter workweek are hopeful that while the immediate economic impacts may seem adverse, the long-term benefits of happier, more productive workers could ultimately lead to a more robust economy. Political support for these measures is essential, as seen in the recent engagement from the President of the Chamber in favor of labor rights and adjustments in working hours.
