Brazil Net Payrolls Beat Forecasts in January

Brazil created 112,334 formal jobs in January 2026, surpassing forecasts of 92 thousand and marking the highest level since September 2025. This reflects the net difference between 2.2 million hires and 2.1 million dismissals during the month. The country now has over 48.5 million active formal employment contracts. Four of the five major economic sectors posted growth, led by industry (+55.0 thousand jobs), construction (+50.5 thousand), services (+40.5 thousand), and agriculture (+23.1 thousand). The commerce sector posted a net loss of 56,800 jobs, a seasonal post-holiday decline. Eighteen of twenty-seven states recorded job growth, with Santa Catarina (+19.0 thousand), Mato Grosso (+18.7 thousand), and Rio Grande do Sul (+18.4 thousand) posting the largest gains.

Brazil shed 618,164 formal jobs in December 2025, well above forecasts for a loss of around 478,000 and reversing November’s gain of 85,900. December typically sees seasonal layoffs, and the 1.26% monthly decline was broadly in line with the recent December average of 1.07%. All five major sectors posted net losses, led by services (-280,810), followed by industry (-135,087), construction (-104,077), commerce (-54,355), and agriculture (-43,836). Every state recorded negative balances, with the largest losses in São Paulo (-224,282), Minas Gerais (-72,755), and Paraná (-51,087).

Brazil created 85,900 formal jobs in November 2025, above market expectations of 75,000 and higher than October’s 85,147. There were 1.98 million hires and 1.89 million layoffs. Even so, job creation was 19% lower than in November 2024, marking the weakest November reading since the current series began in 2020. Agriculture (-16,500), construction (-23,800), and industry (-27,000) posted net job losses, with cuts concentrated in soybean and sugarcane cultivation, raw sugar manufacturing, and infrastructure and building projects. Commerce (78,000) and services (75,100) were the only sectors with net gains. By state, São Paulo led job creation with 31,100 positions, followed by Rio de Janeiro (19,900) and Pernambuco (9,000), while Minas Gerais (-8,700) and Goiás (-8,400) recorded the weakest results. The average starting wage rose to R$2,310.78 from R$2,304.31 in October.