# The education gap: how underinvestment in human capital threatens Brazil's productivity and competitiveness

Spending per student in Brazil's education system exposes a structural gap when compared with the reality of developed nations.

- Section: Education
- Published: October 19, 2026
- Address: https://ceoone.com.br/en/article/the-education-gap-how-underinvestment-in-human-capital-threatens-brazil
- Em português: https://ceoone.com.br/artigo/abismo-educacional-como-o-subinvestimento-em-capital-humano-ameaca-a-p.md

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Photo: Jessica Olivella/Pexels

## Key points

- Brazil spends on average US$ 4,133 per student a year, about a third of the OECD average of US$ 13,601.
- In 2023 the country spent about 4.5% of GDP on public education, close to the OECD average, but the number of students dilutes the amount per student.
- A teacher at the start of their career earns about US$ 25,700 a year, half the OECD average, and only 22.3% say they are satisfied with their pay.

Data from the Education at a Glance 2026 report, prepared by the Organisation for Economic Co-operation and Development (OECD), show that Brazil spends on average US$ 4,133 a year per student from basic education to higher education. The amount is only about a third of the average of the rich-country bloc (US$ 13,601), putting the country third from last in a ranking of 42 nations, ahead only of Peru and Colombia.

The budget gap shows up at every stage of schooling. In basic education, the country's average annual spending reaches US$ 4,294 per student, against US$ 13,231 in the OECD. In higher education, the Brazilian figure drops to US$ 3,539, against an international average of US$ 15,960. The sharp drop in spending per undergraduate stems from a methodological change by the OECD itself, which began counting the more than 10 million students enrolled in private institutions, exposing the reliance on the private system to fill the shortage of budget-intensive public places.

## The GDP paradox and the challenge of systemic productivity

Contrary to what spending per student suggests, Brazil does not allocate a negligible share of its wealth to education. In 2023, the country devoted about 4.5% of its Gross Domestic Product (GDP) to the sector through public funds, close to the average invested by OECD members (4%). However, the huge population and the high proportion of school-age young people dilute that amount, leaving the budget insufficient to address historic bottlenecks in infrastructure, teaching innovation and professional recognition.

For the corporate sector and decision-makers, this financial gap is not just a fiscal debate; it is the main productivity bottleneck in the Brazilian economy. Chronic underinvestment in cognitive development shows in the low competitiveness of Brazilian workers in global markets. The lack of advanced skills in science, math and technology undermines the country's ability to attract high value-added industries and develop a solid ecosystem of deep techs and open innovation.

## Undervalued teachers and the Japan effect crisis

The fragility of the model shows starkly in how attractive and well paid the teaching career is. An early-years elementary school teacher in Brazil's public system earns, at the start of their career, about US$ 25,700 a year (adjusted for purchasing power parity). That is practically half the OECD average (US$ 49,700) and a fraction of the US$ 109,000 paid in Luxembourg, the world leader on this indicator.

The situation creates a severe engagement crisis: only 22.3% of Brazilian teachers say they are satisfied with their pay, ranking 34th among 38 countries surveyed. The survey draws a striking comparison by placing Brazil alongside Japan among the countries with the lowest teacher job satisfaction (37.3% among the Japanese). However, while the efficiency of Japan's education system makes up for low teacher satisfaction with top scores in the Programme for International Student Assessment (PISA), Brazil combines low salaries and lack of motivation with chronically poor learning outcomes.

## The demographic window as a lever for restructuring

Although the picture is challenging, Brazil's demographic transition opens a strategic opportunity to rebalance. With the 5-to-14 age group projected to keep shrinking (by about 3% through 2033), a window of opportunity opens for the government. The natural fall in the absolute number of enrolled students will allow spending per student to rise without necessarily raising the sector's absolute spending cap, redirecting the budget to better salaries, continuous teacher training and technological infrastructure.

For senior business leaders, aligning investment in education with global ESG criteria becomes indispensable. Developing a skilled workforce is the primary foundation for making local supply chains more sophisticated and for building a corporate environment able to lead the technological and sustainable transition of the coming decades.

## Sources and editorial notes

- Study data: Education at a Glance 2026 report, released by the Organisation for Economic Co-operation and Development (OECD).
- Reference reporting: O Estado de S. Paulo (September 30, 2026 edition, Metrópole section, by Paula Ferreira and Renata Cafardo).
- Complementary and macroeconomic analysis: World Economic Forum (Global Competitiveness Report), data from the Brazilian Institute of Geography and Statistics (IBGE) on the demographic transition and analysis of corporate impact by a CEO ONE journalist.

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