Laércio Cosentino’s components, from Totvs, for Brazil to generate employment

In an interview with Neofeed, the chairman of the board of directors of Totvs says that low-skilled professions are being absorbed by technology. The solution? Train young people in technical careers

The chairman of the board of directors of Totvs, Laércio Cosentino, has long warned of a problem that continues to grow: the shortage of professionals in the technology area, a blackout that affects Brazil’s growth prospects.

The most recent data give a dimension of this barrier. Currently, Brazil trains 53,000 people a year with a technological profile in higher education. But the annual demand estimated by the Association of Information and Communication Technology Companies (Brasscom) is 159 thousand professionals per year from 2021 to 2025. This is a deficit of 424 thousand vacancies that need to be filled, but that will not have candidates .

“Brazil is experiencing full employment for skilled people and low-skilled jobs are being absorbed by technology,” says Cosentino, in an interview with NeoFeed. “This means that the failure to prioritize basic education and technical courses tend to perpetuate social programs and the low productivity of Brazilian products and services. We are losing to other nations. The reversal will only be possible with a country plan.”

The solution may seem simple. But at the same time obvious, in Cosentino’s view. “Develop in young people skills for a technical career and train, train, train”, says the businessman, in this interview about Brazil’s prospects in a new government of Luiz Inácio Lula da Silva.

Cosentino says the president-elect’s main mission is to unite a country divided in half, as well as pass structural reforms. Among them, the tax and administrative, which he considers essential for the country to grow again.

Regarding the profile of the minister who will command the economy, Cosentino believes that the ideal would be a name without political bias, with full understanding of the meaning of the word economy. “It should be a global reference”, says the chairman of the board of directors of Totvs, whose market value is R$ 19.6 billion.

Cosentino is also a serial investor in several startups. He is one of the creators of GHT4, a multifamily office that also brings together Guga Valente, from the communication group ABC, the former CEO of Itaú BBA Caio Ibrahim David and Rodrigo Vella, from Vella Pugliesi Buosi and Guidoni Advogados.

Check out the interview:

What to expect from the third term of president-elect Luiz Inácio Lula da Silva?
The main mission of the next President of the Republic is to unite a country divided in half in number of people, remembering that half of Brazil means a population greater than countless countries around the world. It also needs to approve structural reforms and propose and approve a short, medium and long term country plan. Measures to strengthen a power plan will be bad for the future and difficult to implement in the face of the division of the country.

In your opinion, should he be more the Lula of the first term or the Lula of the second term?
This moment has no similarity to previous mandates and to the one complemented by the Dilma government. The world is different, the needs are different. Social programs are vital to reduce inequality, but education and health are the pillars that should be pursued to migrate social programs towards a more just society. Brazil is experiencing full employment for skilled people and low-skilled jobs are being absorbed by technology. This means that the failure to prioritize basic education and technical courses tend to perpetuate social programs and the low productivity of Brazilian products and services. We are losing to other nations. Reversal will only be possible with a country plan.

“We are losing to other nations. The reversal will only be possible with a country plan”

The technology sector has a huge shortage of professionals. And this is one of the obstacles to the country’s growth. What could be done to solve this gap?
Develop skills in young people for a technical career and train, train, train.

Much has been speculated about who would be Lula’s Minister of Finance or Economy. But before speculating on names, what profile would you like to see at the forefront of the Brazilian economy?
The ideal would be a minister without political bias, with full understanding of the meaning of the word economy and aligned with the current world in terms of initiatives and speed of transformation. It should be a global reference.

There is no data on the fiscal gap in 2023 – the numbers range from more than BRL 100 billion to BRL 400 billion. Is the increase in the tax burden inevitable and how can this affect companies?
Increasing the tax burden makes no sense. Decisions must be made in light of prioritization of the essentials and full focus on the structural reforms that the country needs.

There is a lot of talk about reforms for Brazil to grow. Which one do you consider the most essential?
Tax and administrative reforms are essential to reduce the weight of the State and leave money for investment.

What, in your view, needs to be done for Brazil to unlock growth and get back to growing consistently?
Reforms, technical education plan and maintenance of social programs with a defined term and a country plan with goals for three, five, ten and 20 years.

There are a series of campaign promises that mean increasing spending, ranging from an increase in the minimum wage above inflation to an exemption from paying IR for those earning up to R$5,000. Is it possible to fulfill all promises? And how is the spending ceiling in this scenario?
Responsible management is what matters right now.

Source: Neofeed