Brazil Job Creation Falls Short of Expectations

Brazil created 121,305 formal jobs in September 2026, below expectations of 171,000 and down from 165,827 in August, a four-month high. The result reflected 2.21 million hires and 2.09 million dismissals. Four of the five major sectors posted positive balances, led by services (+81,241), industry (+19,285), commerce (+15,697) and construction (+9,468). Agriculture recorded a net loss of 4,381 jobs. All five regions added jobs, with the Northeast leading at 49,142. Year to date, Brazil created 1,248,914 formal jobs, while the 12-month net balance reached 787,073. The stock of active formal employment contracts totaled 48.36 million in September, up 0.25% from August.

Brazil created 165,827 formal jobs in August 2026, above forecasts of 95,700 and up from 58,568 in July. The result was the highest since March, reflecting 2,294,563 hires and 2,128,736 layoffs during the month. Employment increased across all five major economic activity groups, led by services (+110,346), followed by construction (+20,848), industry (+16,613), commerce (+16,565) and agriculture (+1,452). Employment also increased in all states, with São Paulo posting the largest gain in absolute terms (+42,533), while Paraíba recorded the strongest increase in relative terms (+1.59%). The August balance was positive for both men (+81,838) and women (+83,989), with 128,997 jobs added among people aged up to 24. People with completed secondary education posted the largest gain (+100,939). The average real hiring wage was R$2,410.74, broadly stable from July. Year-to-date employment grew 2.41%, with 1,134,033 jobs created.

Brazil created 58,568 formal jobs in July 2026, below forecasts of 112,000 and down sharply from 145,161 in June. The result reflected 2,262,888 hires and 2,204,320 layoffs. Four of the five major economic sectors posted positive job balances, led by services (+24,098 jobs), followed by construction (+12,691), agriculture (+12,523), and industry (+11,315). Commerce, meanwhile, recorded a negative balance of 2,056 jobs. Twenty-two of Brazil’s 27 states registered positive net payrolls. São Paulo posted the largest gain, with 17,814 jobs, followed by Mato Grosso (+5,766) and Minas Gerais (+5,199). Among states with negative balances, Espírito Santo recorded the largest decline, with 2,605 jobs lost, followed by Rio Grande do Sul (-903) and Tocantins (-366). The stock of active formal employment contracts reached 48,082,866, up 0.12% from June.