Productivity of Workers only Grows in Agriculture

From 1995 to 2021, the indicator fell in the industry and stagnated in services, points out FGV

São Paulo

On the one hand, agribusiness is breaking trade balance records. On the other hand, the industry is losing more and more space in the economy, and the service sector is suffering from a sequence of crises. Along the way, the Brazilian worker feels how the loss of productivity affects wages and jobs.

In comparison with industry and the service sector, agriculture was the only segment that showed robust growth in labor productivity in the last 26 years, from 1995 to 2021.

In this interval, the average growth in productivity per hour worked in this sector was 5.6% per year, according to a survey by researchers from the Brazilian Institute of Economics of Fundação Getulio Vargas.

In 2021, an agricultural employee could produce R$ 18.60 in an hour of work, compared to R$ 4.30 in 1995. In the same period, industry productivity decreased from R$ 38.80 to R$ 36.60 (falling back 0.2% per year).

In the case of the service sector, which employs more Brazilians and is responsible for around 70% of the hours worked, productivity also stagnated: it went from R$ 33.50 in 1995 to R$ 37 last year (increase of 0.4% per year).

Translated by Kiratiana Freelon

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