Brazil Can Boost Growth by Bringing More Women into the Labor Force

IMF News, February 11, 2026

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Unemployment rate dropped to 5.2 percent in November 2025—the lowest in a quarter century.
Men’s participation has returned to its pre-COVID trend; women’s participation has fallen behind significantly.
Halving the gap in labor force participation rates between men and women from 20 to 10 percentage points by 2033 could raise Brazil’s growth by 0.5 percentage point per year.

Analysis based on Brazil’s Continuous Household Sample Survey.
Getting more people into jobs is important given an aging population that is expected to weigh on growth.

A major reason many Brazilian women find it hard to join the labor force is the need to look after household and family responsibilities.
Bolsa Família provides an average monthly stipend of around US$130 for families that keep children in school and comply with mandatory vaccinations and other health requirements.
Bolsa Família benefits around 50 million people—or about a quarter of the population—and was expanded significantly in 2023.
Findings:
- Bolsa Família does not appear to systemically reduce labor force participation.
- Transfers are associated with lower participation for women in households with children 6 years old or younger.
- A full assessment of how Bolsa Família relates to economic wellbeing would need to encompass considerations beyond labor force participation.

After controlling for education, age, race, industry, and position, the average monthly wage for women tends to be about 22 percent lower relative to men.
This pay disparity may encourage some women, including those receiving Bolsa Família benefits, to stay at home and care for younger children instead of joining the labor market.

Expand access to affordable, accessible, and quality childcare and eldercare services, along with adjustments to the design of parental leave policy.
Adjust the design of Bolsa Família—such as further tapering the exit from the Bolsa Família benefits upon employment to reduce any possible disincentives from paid work.
Address pay disparities, including through effective implementation of the 2023 landmark Pay Equity Law.
Together, these measures can foster a more supportive environment for women to join the labor market and enhance Brazil’s economic potential.

By Bunyada Laoprapassorn — Brazil Can Boost Growth by Bringing More Women into the Labor Force (February 11, 2026).