Lost in Transition: Brazil Faces Largest Global Economic Loss Linked to Work Cycle Failures
SÃO PAULO – December 8, 2025 - New research from Pearson (FTSE: PSON.L), the world’s lifelong learning company, reveals that inefficiencies during career and learning transitions are costing Brazil an estimated R$ 1.08 trillion annually in lost economic value—equivalent to 9% of the country’s Gross Domestic Product (GDP), according to Lost in Transition Brazil.
The study highlights that Brazil’s economic losses result primarily from significant delays in job transitions. These prolonged gaps account for nearly two-thirds of the total losses (R$ 701 billion). In contrast, automation—a dominant challenge for other economies—contributes less to Brazil’s economic impact.
Key findings from the report include:
- The total cost – Failures in career transitions cost Brazil R$ 1.08 trillion annually, the largest loss among eight global economies analyzed in the study and nearly double that of California, which ranks second at 4.8% of GDP.
- Delayed job transitions – These contribute R$ 701 billion of the total loss, as prolonged unemployment affects over 20% of unemployed Brazilians, who remain jobless for more than two years. On average, it takes 42 weeks for unemployed workers to re-enter the workforce—significantly longer than in Canada (18 weeks) or the UK (32 weeks).
- Youth employment crisis – Nearly one in four (24%) Brazilians aged 18-24 are disengaged from both education and employment, one of the highest rates globally. This “neither studying nor working” population represents a critical threat to Brazil’s future workforce productivity.
- Risk of automation – Roughly 32% of jobs in sectors such as agriculture and industry are considered at high risk of automation, compounding economic challenges.
- Lost opportunities – Reducing the average duration of unemployment by just 20% would generate up to R$ 140 billion in annual gains, demonstrating the economic upside of streamlined transitions and workforce resilience strategies.
Emerging implications and actions required for Brazil
The report emphasizes the need for urgent collaboration across governments, companies, and educational institutions to mitigate economic losses and improve workforce resilience. Specific policy recommendations include:
- Reducing unemployment duration is critical, with policies focused on active labor market interventions, retraining, and job matching that could yield outsized returns.
- Automation risks should not be overlooked. Although it is not yet the dominant driver of losses, its share will grow as technologies mature. Proactive reskilling programs could pre-empt the kinds of disruptions already seen in the US and UK.
- Youth transitions remain significant. Delays in moving young Brazilians from education into productive work contribute to longer-term underemployment and skills mismatches. The country’s 24% NEET rate underscores the urgency of this challenge.
For policymakers, the study suggests even greater investments to combat structural unemployment, with professional placement programs, retraining, and agile reinsertion of professionals into the market, as well as strategies to anticipate automation impacts—acting before it becomes the main source of disruption.
Among companies, the study points to actions that promote workforce resilience and strengthen recruitment processes by adopting continuous learning strategies.
Cinthia Nespoli, CEO of Pearson Brazil, said:
“Brazil is not losing economic value solely because of automation but because many individuals face extended periods without employment. This delay has a profound cost in terms of productivity, income, and human development.”
“Brazil’s young, diverse workforce is an incredible asset, but transition failures are costing the economy over R$ 1 trillion annually while nearly a quarter of jobs face automation risks. The solutions lie in two key areas: investing in continuous learning and reducing unemployment gaps through dynamic reskilling systems. These shifts will empower individuals to navigate changing job landscapes while unlocking the full potential of Brazil’s workforce to drive long-term economic growth.”
This report is part of Pearson’s Lost in Transition global research series, which highlights the risks of a widening global “skills chasm” between employer demands and employee readiness, while calling for a transformative shift in approaches to learning and skills development.
About Pearson
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