Kenneth Rapoza – Forbes, 02/19/2016
Once China-like, Brazil’s labor market is starting to look old school Brazilian.
Maybe it was three years ago now when Latin America guru Tony Volpon of Nomura Securities in New York said over and over again in his Brazil reports that his country’s red hot labor market had no legs. China demand was slowing. Interest rates were rising. Investment was heading to the QE capitals of the world — U.S. and Europe. Volpon, now a technocrat at Brazil’s Central Bank, didn’t know how prescient he was at the time. Once the twin Petrobras bribery and money laundering scandals hit, all hell broke loose.
The big construction and engineering firms that tag-teamed with the oil giant and members of Congress to bilk billions from shareholders and public employees were rounded up like cattle. One by one, the captains of Brazilian industry were locked up. Their companies lost lucrative government contracts to build refineries and make marine vessels. Their employees lost their jobs.