Poverty and the lack of employment opportunities are two major problems experienced by the favelados in Cachoeira. According to the survey 38% of respondents were unemployed while 48.5% were either self-employed or in salaried positions. The forms of employment are diverse including maids, masons, carpenters, plumbers, street peddlers, agriculture worker, and others. It seems to be the case that a large percentage of this work force however is in the informal sector. Incomes in Cachoeira are low for everyone as 76% of the households earn 115 Reais or less per month.
With the general employment characteristics above it appears that targeting employment initiatives toward home-based informal sector activities is appropriate. However any initiative must also address women's specific needs. Labour force surveys in developing countries similar to Brazil for example, suggest that women are major contributors to total household income and production, and tend to use all their income to meet their families' basic needs for education, health care, and food. Unfortunately incomes of households headed by women are generally lower than those headed by men. Consequently such households are more likely to compromise their children's education by requiring them to work instead.
Given the extremely low wages and apparent lack of opportunities the favelados need to be creative. In similar circumstances such micro-enterprise or micro-credit projects have been most successful in fostering economic development for vendors and artisans. Such an option might be appropriate for Cachoeira as it appears that the favelados are unlikely to have access to credit at reasonable rates and terms. This is beneficial for those people who have low incomes, are illiterate, and do not have employment in the formal sector. These types of programs can assist these groups and individuals in improving their business, as well as provide the means by which to access funds to make necessary household improvements.
In addition to such initiatives vocational education and training can also be developed. The best training programs are linked to production and in many cases offer literacy and numeracy, as well as agricultural, commercial or vocational skills. Such projects have provided organizational management, leadership training, marketable skills, and resources that might not otherwise be made available.
Despite the fact that there are a broad range of existing skills in the favela it is clear that the favelados require assistance from local, national, or international organizations to establish these programs. The involvement of external organizations however should evolve through a process of mutual learning, where the coordinator's contribution of new concepts and processes are deliberated through the participants' view of feasibility and possible alternatives.