25K75IL000014

The Brazilian economy's post-pandemic recovery has shown significant progress, marked by a 2.9% gross domestic product (GDP) growth in 2023 and a historic high in employment levels.

However, challenges remain in the labor market, particularly concerning informal employment, low wages, and ongoing issues such as child and forced labor.

The unemployment rate has fallen to 7.4%, yet these positive trends are overshadowed by persistent labor violations and occupational safety and health (OSH) deficits.

Brazil is recognized internationally for its efforts to combat child labor, having ratified key ILO conventions and integrated them into domestic law.

However, child labor remains a critical issue, with 1.9 million children and adolescents engaged in work in 2022, many involved in hazardous activities prohibited by Brazilian law and particularly affecting girls and black or mixed-race children.

Forced labor continues to be a concern, with over 63,000 workers rescued since 1995, and a worrying increase in cases in 2023.

The majority of those exploited in forced labor are mixed-race men in the agricultural sector, often lacking basic education.

This issue highlights the urgent need for improved labor inspection and enforcement.

Supply chains in Brazil face significant risks due to these labor violations, which threaten both domestic industries and international trade relations.

While Brazil has established national guidelines on business and human rights, criticisms persist regarding the voluntary nature of these regulations.

To address this, new legislation is being proposed to create binding guidelines for human rights in business activities.

In response to these challenges, the Brazilian government, with support from the International Labor Organization (ILO) and various stakeholders, has implemented a series of tripartite pacts (pactos) aimed at improving working conditions across supply chains.

These initiatives, which started in sectors such as wine and coffee, aim to promote decent work, formalize employment, and eradicate child and forced labor.

The ILO will collaborate with the Brazilian government and other stakeholders to enhance these pacts, focusing on building capacity, fostering social dialogue, and integrating local voices into national decision-making processes.

The project will emphasize a supply chain approach to ensure the sustainability of its interventions, targeting at least three supply chains within Brazil's agricultural sector.

Key activities will include establishing a technical secretariat to oversee the pacts, conducting assessments of labor conditions, and implementing targeted actions to improve OSH standards and eliminate labor violations.

The project aims to strengthen the capacity of labor stakeholders, including the Ministry of Labor and Employment (MTE), to robustly implement these pacts and promote decent work.

By engaging with civil society, local institutions, and workers organizations, the project will ensure that the needs and perspectives of vulnerable and marginalized groups are addressed.

A pilot project will also be developed to provide technical assistance and enhance the capacity of local governments to implement labor policies, with the potential to expand successful models to other supply chains.

This comprehensive approach seeks to create sustainable improvements in labor practices across Brazil, aligning with global standards and contributing to the eradication of child and forced labor.

International Labor Organization

TO SUPPORT LABOR STAKEHOLDERS INCLUDING THE MINISTRY OF LABOR AND EMPLOYMENT TO ROBUSTLY IMPLEMENT TRIPARTITE PACTOS TO PROMOTE DECENT WORK AND TO ADDRESS LABOR VIOLATIONS IN BRAZIL AND IN THE LATIN AMERICA AND THE CARIBBEAN REGION

17.401 - International Labor Programs

OASAM Office of Grants Management [DOL - OASAM]

Bureau of International Labor Affairs (ILA) [DOL]

Brazil

Foreign

K-IL-24-001

Termination This cooperative agreement was reported as terminated by the Department of Government Efficiency (DOGE) in July 2025. See All
Amendment Since initial award the End Date has been shortened from 11/30/28 to 03/27/25.