Brazilians will have to work later, but the market is still resisting the “gray hair”

The demographic transition in Brazil is occurring rapidly and is already being reflected in the job market. The participation of more experienced people is increasing and that of younger people is decreasing, and this movement is only expected to strengthen from now on.

The percentage of young people (14 to 25 years old) in the workforce reached 15.2% in the fourth quarter of 2024, the lowest level in the IBGE historical series, which began in 2012. On the other hand, the participation of workers over 60 years old reached 8%, the highest level ever recorded.

It is a portrait of the aging of the Brazilian workforce. Last year, the age group with the highest participation was no longer the 25 to 39 age group. The leadership now belongs to the 40 to 59 age group.

"The 60+ group is the only segment of the population that continues to grow. This group, aging actively, can continue to add to and contribute to Brazil being more competitive and productive," highlights Alexandre Kalache, president of the International Longevity Center in Brazil (ILC BR) and consultant at Bradesco Seguros.

Another factor, pointed out by researcher Rogério Nagamine Costanzi, from the Economic Research Institute Foundation (Fipe), is that pension reforms , especially the one in 2019, tend to extend people's working lives, by increasing the retirement age.

Economist Eduardo Giannetti da Fonseca, author of The Value of Tomorrow , emphasizes that, given these scenarios, it will be necessary to completely reformulate the concept of retirement. "People will have to continue working. Investing in education and retraining will be essential," he says.

The number of people over 60 in the labor force increased by 70.6% between the fourth quarters of 2012 and 2024, rising from 5.2 million to 8.9 million. This was the largest increase among all age groups.

A worrying point in this scenario is the possible loss of economic dynamism in the short term, with fewer young people entering the market and a narrowing of the population base. Labor is an essential factor for GDP growth. Experts fear that there will be losses in productivity, an indicator in which Brazil is already not doing well.

According to a survey by the Brazilian Institute of Economics at the Getulio Vargas Foundation (FGV Ibre), productivity in Brazil grew by just 0.5% per year between 1981 and 2024. Specifically in the last half decade, the average increase was just 0.3%.

The Fipe researcher indicates that increasing the participation of older people is essential for the country's future economic growth, due to demographic trends. However, doubts persist about the market's capacity to absorb older workers, and chronic health problems associated with age continue to be obstacles to their greater participation.

Experts interviewed by Gazeta do Povo identify a lack of technical qualifications among younger people, while older professionals may be out of step with current demands without constant retraining. According to analysts, people with higher levels of education, even at an advanced age, have greater employability.

"With health and knowledge, people remain viable in the market," says Kalache, who is also a former director of the World Health Organization's (WHO) global aging program.

Costanzi, from Fipe, points out that, for those aged between 60 and 69, the greatest chances of being in the job market are for men and for those who have at least completed high school. The chances are lower for those who receive pensions, retirement benefits or the Continuous Benefit Payment (BPC).

The transformation in the Brazilian market goes beyond age. Candice Fernandes, country manager at Italian consultancy Stato Intoo, predicts a change in the skills valued by the market. "Experienced professionals have valuable skills such as emotional intelligence and crisis management. Age is no barrier when there is continuous learning."

Changes in the current demographic scenario will require young professionals to adopt a more flexible approach. The single career for life is becoming obsolete, and it will be necessary to develop versatility to transition between different roles throughout life, experts point out.

"Young people need to understand that the profession they choose now will probably not exist in 10 or 15 years," warns researcher Janaína Feijó, from FGV Ibre. This reality reinforces the need for continuous learning, an effort that is both individual and dependent on efficient public policies.

The workplace of the future will bring together multiple generations, requiring a new collaborative approach. Young people will need to learn from experienced professionals, while older people will need to be open to innovation. This synergy can bridge skills gaps and create more productive and innovative environments.

Unprepared labor market: structural and cultural barriers

Despite the growing contingent of older professionals who want and need to remain active, the Brazilian market appears unprepared to absorb this workforce.

"We still don't know very well how to deal with this issue, despite recognizing the importance of intergenerationality," says Clea Klouri, partner and co-founder of Data8, a datatech company specializing in analyzing market trends for the older population.

Experts point out that society, in general, and companies, in particular, have not kept up with the accelerated pace of aging, failing to create the structures and public policies necessary for this new reality.

The main obstacle to the integration of older professionals is ageism, prejudice based on age.

"There is a mistaken perception that professionals over 50 are no longer useful in the market, as if they were not adaptable or resistant to new technologies," says Michelle Queiroz, director of the Longevidade Network and professor at the Dom Cabral Foundation (FDC). In practice, this results, for example, in the premature elimination of resumes based solely on age, even before any assessment of skills.

Another problem is the lack of specific programs to absorb or bring this contingent back into the job market. Even when these people are willing to retrain, the doors to the market often do not open for them.

A survey released in November by the consulting firm PwC Brasil and the São Paulo School of Business Administration (FGV Eaesp) reveals that, contrary to demographic trends, 72% of managers at large companies plan to hire only people under the age of 40. More worryingly, 86% of institutions do not have career plans for professionals above this age range.

Fernandes identifies an economic component in this equation: "There was a process of 'juniorization' of positions, in part to reduce payroll costs" – a short-term strategy that can compromise productivity and the transmission of knowledge in organizations.

To overcome this lack of preparation in the job market, experts recommend recognizing that ageism represents a market inefficiency that wastes valuable experience.

The assessment is that the coexistence of multiple generations in the work environment, although challenging, enhances the combination of complementary skills and the transfer of knowledge.

Klouri emphasizes that organizations need to make better use of the knowledge generated and developed by more experienced professionals. She points out that the experience accumulated by these professionals is often not passed on when they leave the company, due to the lack of methodologies to capture this knowledge. "This transfer is essential for organizational health, but it still does not occur consistently," she states.

This is the third chapter of the series of reports "Threatened Future", which shows the economic challenges of the aging Brazilian population.