Structural Change and Labour Productivity in BRICS

The BRICS countries (Brazil, Russia, India, China, and South Africa) have seen varying GDP growth rates, averaging around 5 percent in the 1990s, rising to 8 percent in the 2000s, and about 5.5 percent from 2011 to 2020. Structural change and labour productivity are key for sustained economic growth, achieved by reallocating resources to more productive activities. This study analyses employment changes and labour productivity from 1990 to 2018, focusing on labour shifts from less productive to more productive sectors, inter-sectoral changes in output and employment patterns, and the impact of structural changes on labour productivity. Using the Economic Transformation Database (ETD) and methodologies from various researchers, the study highlights significant structural changes in China and India, while Russia, Brazil, and South Africa show minimal change. It underscores the need for policies promoting education, vocational training, and reducing trade barriers to enhance productivity and economic growth.