Aging population threatens to slow growth in Brazil
Surat, February 13, 2026
Household and care-giving duties besides a government monthly stipend are likely stopping women from taking up paid jobs in Brazil, a new analysis says.
Paper author and economist Bunyada Laoprapassorn raises these reasons in a commentary published by the International Monetary Fund this week.
Brazil faces growing pressure to bring more people into the workforce as an aging population threatens to slow economic growth, he says.
Analysts estimate that narrowing the gap between men’s and women’s participation in the labour force — from 20 to 10 percentage points by 2033 — could spur annual growth by about 0.5 percentage point, he writes.
A major barrier for many women is the weight of household and caregiving duties, a pattern highlighted in data from Brazil’s Continuous Household Sample Survey.
The issue has gained fresh attention amid debate over whether Bolsa Família, the country’s flagship cash‑transfer (stipend) programme, inadvertently discourages women from seeking paid work.
Bolsa Família, created in 2003 to combat extreme poverty, provides an average monthly payment of about US$130 to families who keep children in school and meet basic health requirements. The programme now reaches roughly 50 million people — around a quarter of the population — and saw a major expansion in 2023.
An examination of recent data shows no broad evidence that the benefit reduces women’s participation in the labour force. However, the transfers are linked to lower participation among women in households with children aged six or younger, suggesting that childcare demands continue to shape employment decisions.
Economists say any assessment of the monthly family stipend impact on economic wellbeing must look beyond whether recipients enter the labour force.
Fresh data show wage gaps continue to weigh on women’s participation. After adjusting for education, age, race, industry and job role, women earn about 22 percent less than men. Analysts say the gap may prompt some women, including Bolsa Família beneficiaries, to stay home to care for young children rather than seek paid work.
In its latest annual review, the IMF outlines measures to increase women’s participation and support growth. These include expanding affordable childcare and eldercare, revising parental‑leave rules, and redesigning Bolsa Família so benefits phase out more gradually when recipients take jobs. The report also calls for stronger enforcement of Brazil’s 2023 Pay Equity Law.
The IMF says these steps would help create conditions for more women to enter the workforce and strengthen Brazil’s long‑term economic outlook.
Indian policy makers should learn from Brazil’s example freebies and monthly stipends sometimes harm a country. Stipends encourage beneficiaries to relax at home. Payouts divide populations. Small wonder hard working taxpayers loathe freeloaders.
