Half of the currently employed adults who earned a registered job in January in Brazil may be unemployed or change jobs before the year ends. The statistic illustrates the high turnover rate of the Brazilian labor market that, according to the economist Gustavo Gonzaga, from PUC Rio, negatively affects the productivity of the economy. Some allocative flexibility is always healthy, but at the level that we have in the country, it is bad. In the case of young people, this situation is even more serious, said Gonzaga at the seminar Labor Market Outlook in Brazil, sponsored this week by the Brazilian Institute of Economics (FGV/IBRE).At the event, the economist stated that it is the result of a legislation that generates perverse incentives in the system, because it creates the perception of gains in the short-term, for employees and employers. On the employee's side, part of the received labor benefits adds up to the unemployment insurance. In relation to the employer, Gonzaga highlighted that, in addition to avoiding the payment of charges, the resignation of workers with less than one year on the job is related to the fact that companies avoid approving contract termination and complying with worker's rights, such as severance payments, leaving room for agreements.However, the low degree of involvement of workers and companies generates a vicious circle with little prospect of raises in wages, from one side, and low investment in training, in the other, which affects productivity, he concludes.