Debunking the myth of a bloated public sector: Brazil in an international context

In the midst of administrative reform discussions, a popular viewpoint portrays Brazil’s state apparatus as bloated.

Scholars specializing in public service suggest that public examinations need to be revised, existing careers should be reformed, personnel should be adapted to labor market changes, and performance evaluation needs enhancement.

Nevertheless, the notion of an oversaturated public workforce is disputed.

Félix Lopez, a researcher and coordinator at Ipea’s Atlas of the Brazilian State, which collects data on public servants, highlights that the idea of an exploding public workforce in Brazil is a myth.

He illustrates that an international comparison supports this stance.

Of the 91 million workers in Brazil, 12.45% (11.3 million) work in the public sector, a similar percentage to Mexico and less than the U.S., where 13.55% of the workforce is in the public sector.

Even Chile, known for its liberal reforms reducing state influence, has a higher rate (13.1%).

However, the researcher stresses that beyond raw numbers, the public policy of each country must be taken into account.

Brazil ambitiously seeks universal access to healthcare and education, demanding a larger workforce.

Yet, even with these efforts, Brazil remains mid-level in international comparison.

For instance, countries in the European welfare state, like Norway and Sweden, have 30.22% and 29.28% of their workforce in the public sector, respectively.

The OECD average is 23.48%.

Brazil has seen exponential growth of 400% in municipal public servants since the early 1990s, primarily to meet the demands for health, education, and social assistance services outlined in the 1988 Constitution.

Yet, despite this growth, many areas, especially those requiring higher qualifications, face staffing shortages.

On a federal level, the public workforce has actually shrunk, except for university professors.

Pedro Masson from the National School of Public Administration claims the number of public servants in 2023 is less than in 1989.

He also emphasizes that the transition to digital solutions can help cover some activities.

Nevertheless, there are numerous federal-level tasks suffering from a lack of personnel, particularly in regulatory agencies, research institutes, and environmental organizations.

Some business leaders have criticized the state’s involvement in areas that could be better managed by the private sector while advocating for more staffing in essential public institutions.

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