SAO PAULO, (Reuters) – Brazil’s government is exploring ways to ease immigration rules in order to attract up to 10 times more foreign professionals and help spur economic growth, a senior official told Reuters.
A lack of skilled workers is one of many bottlenecks that have lately brought the world’s sixth largest economy to a near standstill. From construction sites to oil rigs and technology operations, companies are struggling to find qualified workers to ramp up their operations in Brazil. Internet giant Google , for instance, currently has 39 open positions in Brazil.
“This country has become very isolated from the rest of the world in terms of its labor markets and that is affecting our competitiveness,” said Ricardo Paes de Barros, who heads a team on strategic initiatives at the president’s office.
“We want to turn that around so Brazil will be better connected with the rest of the world in terms of transfer of knowledge,” he said in a telephone interview.
A former Portuguese colony, Brazil has a long history of welcoming immigrants from all over the world, similar to the United States. In the last few centuries, the country has received waves of immigration from Africa, Europe, Japan and most recently from poorer neighbors such as Bolivia.
But economic woes in the second half of the last century reduced the arrivals to a trickle. Today foreigners represent just 0.3 percent of Brazil’s workforce, down from 7 percent at the beginning of the 20th century. In Australia, a similarly sized country that has long attracted immigrants, foreigners account for about 20 percent of the workforce.
The debate over a more flexible immigration framework reflects Brazil’s new status as an emerging economic power. Near full employment has boosted the popularity of President Dilma Rousseff, herself the daughter of a Bulgarian immigrant.
“We need to reach a level of 2 to 3 percent of our workforce made up of foreigners. That means multiplying the current levels by 10,” said Paes de Barros, a Yale-educated economist. “If we do that we should be fine.”
The timing, however, may not be ideal. By the time a bill finally lands in Congress, the 2014 presidential vote will already be around the corner, which could make it difficult for Rousseff to divert her attention from a re-election push.
“The other variable to keep in mind is that much will depend on a rebound in economic growth in 2013 and 2014. Because if we are in an environment where unemployment starts to take off and the labor markets starts to cool off this becomes a more difficult sell,” said Chris Garman, an analyst at Eurasia Group, a consulting firm.
“The government, unfortunately, is coming to this a little bit late.”
Brazil’s economy is expected to grow less than 2 percent this year but gain speed again in 2013 as a flurry of government stimulus measures take effect. The jobless rate, however, remains near an all-time low of around 5.8 percent.
