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

Moderador

Notas de la presentación

Sugerencias: El botón Nueva diapositiva se encuentra en la barra de herramientas Estándar. También puede hacer clic en Insertar > Nueva diapositiva.

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