Discrimination against LGBTI+ people drains billions from Brazil’s economy

Brazil is losing nearly R$94 billion annually due to discrimination against LGBTI+ people, as exclusion limits employment, income and productivity. Addressing these barriers could boost economic growth while making the labor market more inclusive.

Brazil is losing billions each year due to discrimination against LGBTI+ people, according to a new World Bank report developed with Instituto Matizes, +Diversidade, To.gather, PADF, ANTRA, ABGLT and other civil society partners. The study reveals that exclusion in the labor market is not just a social issue but a major economic problem, costing the country about R$94.4 billion annually, or 0.8 percent of its GDP. At a time when Brazil is trying to boost growth and productivity, this loss represents a significant missed opportunity.

Unequal Access to Jobs

The report shows that LGBTI+ individuals face clear disadvantages when it comes to employment. Unemployment among this group stands at 15.2 percent, nearly double the national average. Many also drop out of the workforce entirely, leading to higher inactivity rates. Even when employed, LGBTI+ workers often face limited career growth and lower overall income when participation is considered. These patterns suggest that exclusion is not just about wages but about access to stable and meaningful work.

Discrimination at the Workplace

A major reason behind these gaps is workplace discrimination. Many respondents reported experiencing harassment, negative comments or unequal treatment on the job. Others said they feel pressured to hide their identity to avoid conflict or job loss. This creates stress and affects performance. The situation is even more difficult for transgender, non-binary and intersex individuals, who often face barriers even during hiring. As a result, many are pushed into informal jobs or self-employment, not by choice but due to a lack of opportunities.

Barriers Start Early

The report highlights that exclusion often begins long before people enter the workforce. Many LGBTI+ individuals face discrimination in schools, leading to high dropout rates, especially among transgender youth. Lack of support, bullying and family rejection make it harder to complete education. This limits skills development and reduces the chances of securing good jobs later in life. These early disadvantages continue to affect income and employment outcomes over time.

A Cost to the Entire Economy

The impact of exclusion goes beyond individuals. It affects the entire economy. When people are unable to fully participate in the labor market, productivity declines. The report estimates that Brazil also loses around R$14.6 billion each year in tax revenue and increased social spending. Fewer people in formal jobs means less income tax and social security contributions, while higher unemployment leads to greater reliance on public support.

The findings make it clear that inclusion is not just about fairness but also about economic growth. By reducing discrimination and improving access to education, jobs and financial services, Brazil can unlock the potential of a large part of its population. The private sector also has a key role to play by creating inclusive workplaces and fair hiring practices.

In simple terms, exclusion is costing Brazil both money and talent. Addressing it could help the country build a stronger, more productive and more inclusive economy.