A proposed reduction in the work schedule in Brazil could raise property costs and slow down construction projects, according to a study by the Brazilian Chamber of Construction Industries (Cbic).
A current proposal in the Brazilian Congress to eliminate the 6x1 work schedule may significantly impact the construction industry, potentially increasing construction costs and slowing projects. The Câmara Brasileira da Indústria da Construção (Cbic) has published a study indicating that this change could raise the labor costs in the construction sector by up to 15%, affecting around 3 million formal workers. Currently, the total expenditure on labor in this sector is approximately R$ 135.3 billion, but under this new scenario, it could rise to R$ 155.6 billion annually.
The chief economist of Cbic, Ieda Vasconcelos, suggests that the average hourly wage would increase from R$ 15.01 to R$ 16.51, reflecting a raise of about 10%. This change means that construction firms would need to either work fewer hours with the same workforce or increase wages to make up for lost hours, creating financial strain on their operations. This potential increase in costs could have broader implications on the housing market, leading to higher prices for housing, which is already a critical issue in Brazil.
The effects of this proposed work schedule adjustment would be particularly severe for micro and small enterprises, which account for a staggering 98.7% of more than 300,000 construction establishments in Brazil. As these smaller companies often operate on tighter margins, they are likely to face greater challenges in maintaining profitability while adapting to new labor cost structures, potentially stunting growth in the construction sector and affecting the overall economy.
