Brazil Loses 94 Billion Reais Annually Due to LGBT Discrimination in the Labor Market

The exclusion of LGBT people from the Brazilian labor market leads to losses of 94.4 billion reais annually, which is equivalent to 0.8% of the country’s GDP. These figures are presented by the World Bank in the study “The Economic Cost of Exclusion Based on Sexual Orientation, Gender Identity and Expression, and Sex Characteristics in the Brazilian Labor Market.”

In addition to direct economic damage, the study records fiscal losses of 14.6 billion reais a year. This amount consists of lost taxes and public spending associated with the systemic isolation of the group.

Unemployment and Social Barriers

The unemployment rate among LGBT people in Brazil is 15.2% – almost twice the national average (7.7%). The economic inactivity rate in this group reaches 37.4% (the national average is 33.4%).

Economic losses hit women harder (54.3 billion reais a year) compared to men (40.1 billion). Transgender, non-binary, and intersex people face the highest barriers in education and job seeking. According to the authors of the report, about 70% of transgender people in the country did not finish high school, and only 0.02% receive higher education.

Stigmatization directly reduces employee retention in the workplace and limits their professional growth. Research coordinator Samuel Araujo points out that the fear of prejudice forces many to hide their identity at work. This causes stress and reduces productivity.

About the Study

Data collection took place in 2025. The World Bank conducted the work together with Brazilian organizations, including Instituto Matizes, Mais Diversidade, the National Association of Travestis and Transsexuals (Antra), the Brazilian LGBT Association (ABGLT), and the Pan American Development Foundation (PADF). Researchers used online surveys, face-to-face interviews, and focus groups.

The work in Brazil is part of the World Bank’s global initiative to assess the economic consequences of discrimination. Previously, similar methods were used in India, Serbia, and North Macedonia.