Rafael Antunes, a former truck driver from the northern suburbs of Rio de Janeiro, illustrates the changing dynamics of Brazil’s labor market. After losing his job two years ago, the 52-year-old turned to driving for Uber, where his monthly earnings can be as low as half of what he made previously. His story reflects a broader economic trend that is shaping the political landscape as President Luiz Inácio Lula da Silva seeks re-election.

Despite steady economic growth during Lula’s third term and unemployment levels falling to 5.3 percent—the lowest since 2012—a significant portion of Brazilians express skepticism about the economy’s health. A recent poll by Quaest found that 49 percent of respondents believe the economy has worsened over the past year, while only 19 percent feel it has improved. Rising household debt amid high-interest rates and slow recovery in real incomes contribute to this sentiment.

A key factor underlying this disconnect is the rapid expansion of Brazil’s gig economy, particularly the growth of transport and delivery apps such as Uber. Approximately two million people, predominantly men, now work full-time in these roles, representing about 2 percent of the workforce. Driver numbers have grown 37 percent over the past three years, with many citing a lack of alternative employment opportunities as their primary reason for joining the gig economy.

This shift has been so significant that it has entered the national lexicon as the "Uberização" or “Uberisation” of the economy. Economists note that this phenomenon serves as a form of informal safety net, helping to reduce unemployment by roughly one percentage point, according to Daniel Duque, a Brazilian economist. Brazil’s sprawling urban centers, limited public transportation, low wages, and sizeable informal labor market create an environment where gig work is particularly viable and attractive.

The widespread adoption of gig work also signals a cultural shift away from traditional unionized employment towards individual entrepreneurship. Mansueto Almeida, chief economist at BTG Pactual, highlighted that whereas formal industrial jobs and trade unions once predominated, many young workers today start their careers through app-based platforms.

However, the growing reliance on gig economy jobs has also fueled frustration and economic anxiety. Economists argue that despite positive headline figures, this underlying resentment contributed to the strong showing of hard-right Senator Flávio Bolsonaro in the recent presidential election’s first round. Bolsonaro secured 47 percent of the vote, narrowly surpassing Lula’s 45 percent, and is favored in the upcoming runoff.

Guilherme Klein Martins, an economist at the Federal University of Rio de Janeiro, pointed to the accumulation of debt in over 80 percent of Brazilian households and the slow rebound of real wages as factors deepening public dissatisfaction. Some gig workers, like São Paulo Uber driver Nielson Costa, remain unconvinced by government initiatives. Although Lula has introduced a R$30 billion ($6 billion) credit line to help drivers purchase their own vehicles, Costa said the support fails to address more pressing financial struggles.

Uber maintains that its platform has positively impacted workers by increasing incomes and lowering unemployment rates, but workers’ experiences vary widely. As Brazil’s labor market continues to evolve, the gig economy presents both opportunities and challenges for the country’s future economic and political trajectory.