Investment in Brazil Brings Booming Job Market

Statistics just out from Brazil show the country has one of the world's fastest-growing employment markets. The spectacular rise in jobs so far this year is one of the effects of the huge increase in investment in Brazil.

The essential ingredients of a healthy economy include steady GDP growth, strong consumer spending and job creation. In the first half of this year, almost 1.5 million new jobs were created in Brazil. The booming job market in Brazil joins buoyant growth (predictions for GDP growth in 2010 range from 6.5% to 7.9%) and big consumer spending, which is expected to reach R$2.2 trillion this year.

In the first six months of 2010, Brazil generated a total of 1,473,000 new jobs. This figure is higher than the 2008 record when just over 1,360,000 jobs were created. Year-on-year statistics are even more impressive - from June 2009 to June 2010, over 2.16 million Brazilians entered the job market and employment went up by 6.71%.

Statistics also show new employment in Brazil by sectors. Out of the eight main sectors, six experienced the highest job creation ever. At the top is the service industry in Brazil where almost half a million jobs have been generated this year. Close behind is the civil construction sector with over 230,000 new jobs.

As a major focal point of investment, construction in Brazil is currently one of the country's biggest growth industries. Not only is foreign investment flooding into all corners of Brazil for infrastructure and property projects, but the Brazilian government is spending billions on civil construction ranging from airports and stadiums for the 2014 World Cup to social housing within the Minha Casa Minha Vida programme. The huge investment sums involved mean that thousands more new job opportunities are likely within the Brazilian construction industry.

An expanding job market is excellent news for Brazil's bid to overcome social inequality. As more Brazilians enter the job market, wages increase and families have higher purchasing power and poverty levels fall. This is one of the main aims behind government investment in Brazil and so far, the results are impressive. In just four years, 91 million Brazilians have joined the middle class and 6 million have become part of the upper middle class. By 2014, the middle class will include 36.1 million more Brazilians.

At Obelisk International, we see the booming job market as great news for Brazil and also for those looking at investment in Brazil. The booming middle classes in Brazil are big consumers. Cars and property are at the top of desirable goods with leisure spending - for example, holidays - also a favourite. Although many Brazilians already own a car, the up-and-coming middle classes want bigger and better models - unsurprisingly, the automobile industry in Brazil was one of the few in the world that expanded in 2009.

The situation regarding property in Brazil follows a similar pattern, although investment opportunities here are much wider. Traditionally forced to rent, share with relatives or live in slums, many of the new middle classes are about to become first-time homeowners thanks to the affordable housing programme, Minha Casa Minha Vida. For those at the higher end of the middle classes who already own a home, property is now about buying a larger home with better finishes.

In Brazil, property aspirations are huge and to meet them, Ernst & Young believe that some 37 million properties will be built over the next 20 years. For Obelisk International, it's more than obvious that investment opportunities within Brazil's real estate and civil construction industries are therefore also huge.

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