JOB SEARCH IN BRAZIL“BE PREPARED FOR THE REAL DEAL”
June, 2011Prepared by: IE Brazil Office
People need to see Brazilian job market as it really is…
…and it is different from what you read in The Economist
Some of the reasons why this event was organized in the first place
Career Development Services for students is serious subject and one of the pilars of our strategy to strenghten our brand in Brazil
“…here is my résumé, I am interested in…”
“…Brazil is one of my target markets for the job search…”
…”Brazil is booming”…
Southeast
Northeast
South
North
Midwest
• 56% of GDP• 42% of population
São PauloRio de Janeiro
• 17% of GDP• 14% of population
• 13% of GDP• 28% of population
• 5th largest country in the world in size
• 200MM people
• 7th largest GDP
• Inequality: 113th Gini coefficient
• 7,5% GDP growth for 2010a and 4,5% for 2011e
Some demographics about Brazil
The size and growth of the economy create a significant discrepancy when it comes down to the job market…
Market SizeHealth & EducationInfrastructureFinancial Market sophisticationBusiness sophisticationInnovationMarket efficiencyLabor Market efficiency
7974513243
10
9980
…you can only compete with the locals if you are an expert in your area of work
Indicator Rank/133
Source: World Economic Forum
This is the first time ever that the country sees a high inflow of foreigners and companies are not prepared to react
Source: JP Morgan
FDI, in US$
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
10,8
26,9
32,8
16,6 18,1 18,8
45,1
48,5
Brazil leaves hyperinflation behind. Foreign investment was restricted to very traditional multinationals.The only foreigners working here were their top-executives
There were virtually no foreigners
Foreign companies were closing
branches in Brazil. Foreign banks were
burning Brazilian Bonds
Foreigners flee
Significant inflow of foreigners to compete with highly
talented Brazilian who spent the last years working abroad
and are also coming back
Now they come back with great competition
world crisis
Banks are optimistic in their macro forecasts
Real GDP change (%)
Inflation
Interest Rates
Exchange Rate (1US$)Source: JP Morgan
2008 2009 2010 2011 2012 2013 2014 2015
Main economic indicators – Historical data & forecast
5,1% -0,2% 7,5% 4,0% 4,0% 4,0% 4,0% 4,0%
6,0% 4,3% 5,9% 6,4% 5,0% 4,5% 4,5% 4,5%
13,75% 8,75% 10,75% 12,50% 12,50% 10,00% 9,00% 8,50%
R$1,84 R$2,00 R$1,76 R$1,59 R$1,66 R$1,80 R$1,93 R$2,04
• GDP growth should be around 4,0% for the next years
• The main concern is Inflation: it is high and is expected to be around 4,5% after 2013
• Interest rates will continue to be high to control inflation
• The overappreciation of the Real is also a concern. Some banks believe it will depreciate by 25% in the next 4 years
Upsides and downsides to move to Brazil and start your job search
Salaries are higher than ever and there is job creation has reached its record
Average annual executive pay, 2010 ($,000)
São Paulo
New York
London
Singapore
Hong Kong
0 100 200 300 400 500 600 700
CEO/PresidentDirector
Source: Dasein Executive Search; The Economist
Top MBA Degrees
MBA graduates vs. number of management jobs
Siource: Serasa Experian
Senior Management
Jobs
6 thousand
Over 100 thousand
But still, when you talk to foreigners who moved to Brazil…
…all of them will tell you that they came for a personal reason in the first place
Why?
You need a company to sponsor your visa. It costs 5,000€ and takes 3 months…
…while jobs are created and closed in less than one month
You are the perfect fit but we can’t wait a few months
for your visa
I could pay for the expenses and you
would just have to signa few papers…
…sorry, still…
A foreigner must master the Portuguese to enter the job market
It is difficult to penetrate the networks controlling the job market…
…and it takes between 3 to 6 monhts
vGRINGO
LOCAL
AFTER 6 MONHTS IN BRAZIL
Rio and São Paulo are two of the most expensive cities in the world nowadays
Rent & CondoElectricity & InternetGroceriesTransportationMobileHealth Insurance
Total
2.500350800200250250
4.350Note: Cost of living in São Paulo and Rio considering the same lifestyle of the IE student in Madrid
Amounts in R$ Euros
1.140160360200
9090
2.040
Cost of a beer in a bar
Cost of lunch in the street
Cost of dinner with your partner
3€ 15€ 75€
One of the worlds most dangerous places
Venezuela Colombia S. Africa Brazil Mexico Russia Argentina Chile Europe
48
3534
25
15 11 5 2 1
Homicide Rate per 100,000 People (2009)
Source: World Economic Forum & JPMorgan
For those who like rankings…
89th in reliability of police services
111th in organized crime
118th business costs of crime & violence
But if you are still interested, here are the types of jobs that foreigners are more likely
to find in Brazil
If you are an expert…
• Consulting
• Finance (back-office)
• Marketing (Consumer Goods)
• Technology
Easier Harder
If you haven’t blended in…
• Career change
• Sales & Customer Relations
• Finance (front-office)
• PE & M&A
Other cities besides São PauloRio de Janeiro Curitiba Porto Alegre
Belo Horizonte Salvador Brasília
Oil & GasOlympics
InfrastructureTourism
Vale
HSBCRenault
BR FoodsPhillip Morris
ALL
GerdauRennerPetropar
BraskemOdebretch
Ford
FIATBMG
CEMIGThe Capital
And how does the job search work in Brazil
People who have created or are
managing the jobs
Head Hunter10
%
Human Resource
s
10%
80%
Friend
Former colleague Group or
Network
A few things that never work and are a waste of time and energy
Trying to network from abroad
Skype and phone Interviews
Writing e-mails in a foreign language
Sending your résumé to Head Hunters
The main industries and the National Champions in Brazil
Financial & InsuranceOil & GasMiningFood & BeverageElectricityTelecomSteel & MetallurgyCommerceTransportationConstructionChemicalSoftware & ITVehicle & PartsPulp & PaperTextileIndustrial MachineryElectronicsAgricultureNonmetallic MineralsOther
TOTAL
33794
20424
15171426154
176
287942207979
623
Company(sector)
Source: Economática
% of Bovespa Total Capitalization
Number of companies
20,9%18,1%11,4%8,5%7,4%4,5%4,4%3,0%2,7%2,2%1,8%1,6%1,0%1,0%0,9%0,6%0,4%0,1%0,1%9,4%
Bovespa by sector (as of December, 2010)
Petrobrás (Oil & Gás)Vale (Mining)Itaú Unibanco (Banking)Ambev (Beverages)Bradesco (Banking)Banco do Brasil (Banking)Santander (Banking)OGX Petroleo (Oil & Gas)Itausa (Banking)Sid. Nacional (Steel)
TOTAL
229,1166,896,786,967,254,152,138,936,123,4
851,3
Company(sector)
Source: Bloomberg
% of Bovespa Total Capitalization
Market Cap(in US$ billion)
14,8%10,8%6,2%5,6%4,3%3,5%3,4%2,5%2,3%1,5%
54,9%
Brazil’s 10 Largest Public Equities
If you decide to move to Brazil, how can the IE Office help you in the job search?
An honest assessment and review of your profile and your story
A weekly 1 hour meeting at our office where we try to push you through some
networks and companies
Monthly events with alumni and bi-monthly events with professors
We don’t have a structure dedicated to careers. Everything is done
individually by alum
Different from other schools, the IE Alumni Network in Brazil is not an Expat’s Group
Over 200 alumni
Brazil, Spain, Portugal, Italy, Chile, Argentina, Ireland, England, India, Uruguay, Venezuela, Austria
Active andwilling to help
Transparentto eachother
Active in thesourcing of jobs
QUESTIONS?
If you decide to come to Brazil, you will find a job and we can help you. But it takes time, money and effort