The main objective of this work is to analyze the effects of Brazilian Labor
Market Reform (BLMR) in the short run and, based on identified changes in
the economy in recent decades, to verify how these changes have affected the
labor market. Four methods were used in a complementary way: (i) employment
quality index; (ii) panel data estimation method; (iii) synthetic control
method and (iv) microdata analysis. We observed that there was no
considerable increase in the quality of employment and formal employment and
the rate of unemployment did not decrease after the implementation of these
changes. Part of this dynamic is cyclical and related to exogenous shocks,
such as the COVID pandemic on the Brazilian economy. Finally, according to
econometric analysis, the rate of unemployment in Brazil is more responsive
to investment rates and the business environment than to unit labor cost and
changes in labor legislation.