Brazil Unemployment Rate Rises in March

The unemployment rate in Brazil rose to 6.1% in the moving quarter ended March 2026 from 5.8% in the prior quarter, matching market expectations. Still, this marks the lowest rate for a quarter ended in March in the historical series, which began in 2012. The unemployed population grew by 19.6% to 6.6 million in the quarter. Employment fell 2.5% in the public sector and 1.0% in the private sector. The employment level was 58.2%, a drop of 0.7 p.p. in the quarter. Over the year, the unemployed population fell by 13.0%.

The unemployment rate in Brazil averaged 5.8% in the moving quarter to February of 2026, slightly higher than market expectations of 5.7% but still marking the lowest for the period on record. The figure compared to the 6.8% rate in the corresponding period of the previous year and the 5.2% in the moving quarter ending November of last year, which seasonally sees lower unemployment.

The unemployment rate in Brazil averaged 5.4% in the moving quarter ending January 2026, remaining unchanged from that of the moving quarter ending October of 2025, and aligned with market expectations. It was the slowest on record for the period, holding the view that the Brazilian labor market remained tight at the turn of the year despite the prolonged period of high base rates by the central bank and slowdown in growth. The unemployed population remained broadly unchanged from the earlier moving quarter at 5.9 million, and the employed population also remained loosely unchanged at 102.7 million. In the meantime, average wages grew by 2.8% on the quarter to R$3,65 monthly. This was equivalent to a 5.4% annual growth rate, ahead of the inflation rate in the period.