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As highlighted in the OECD Action Plan for Youth, successful engagement of youth in the labour market is crucial not only for their own personal economic prospects and well-being, but also for overall economic growth and social cohesion. Therefore, investing in youth is a policy priority in all countries, including Brazil, and requires concerted action to develop education systems and labour market arrangements that work together well.
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In recent years, Brazil has combined strong economic performance with consistently falling unemployment rates. Despite this, young people in Brazil face significant labour market difficulties: they are over three times more likely to be unemployed than adults; the proportion of youth neither in employment, nor in education or training (NEET) is higher than in OECD countries; a very large portion of the unemployed have been out of a job for a year or more; the quality of jobs held by youth is often poor; job turnover high; and strong inequalities persist along gender, geographical and racial lines.
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Over the last decade, the Brazilian economy has grown at an average rate of 3.5% per year. Labour market conditions reflect this strong economic performance. Unemployment rates have fallen consistently and have reached their lowest levels since the new series began in 2002. In September 2013, the unemployment rate in Brazil’s six largest metropolitan areas stood at 5.4%, down from 13% in September 2003.
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This chapter describes education in Brazil, demonstrating close links between how much youth have studied and their labour market outcomes. It looks at the performance of Brazil’s education system in recent years, at key government policies that have successfully raised the educational attainment of Brazilian youth, as well as at the challenges that lie ahead.
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This chapter analyses both active and passive labour market policies aimed at youth in Brazil. It discusses the role of the public employment service, unemployment insurance and severance pay in helping youth find work, as well as the effect on work incentives of welfare programmes like Bolsa Família. The chapter also looks at Brazil’s largest labour market policy for youth ProJovem, and discusses the possible role that entrepreneurship programmes and hiring subsidies could play.