A survey by the Brazilian Institute of Economics of Fundação Getúlio Vargas (FGV-IBRE) pointed out that agriculture was the only segment that showed robust growth in labor productivity in the period between 1995 and 2021.
In the last 26 years, the average growth in productivity per hour worked reached the level of 5.6%.
In an interview with CNN Rádio, FGV IBRE researcher Fernando Veloso said that this sector differs from industry and services: “It is inserted in the international economy, exports a lot, imports machines, suffers competition with other countries, uses technology and manages to make its application in the production process.”
“This is a different behavior from industry and services, which are stagnant”, he added.
At the same time, however, he stressed that there is a difficulty in Brazil, as 70% of employment is in the service sector and industry.
“Agriculture corresponds to less than 20% of jobs in Brazil. It is the only one that increases productivity, but affects relatively little in the country’s unemployment. It would be important for it to happen in industry and services as well,” he argued.
The economist also considers that Brazil has known problems, such as a complex tax system, low level of education, problems in infrastructure, but that agriculture managed to escape this.
“The sector has opened up to the outside world and uses technology to increase productivity, something that the industry has struggled to do”, he added.
Source: CNN Brasil
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