Brazil Unemployment Matches Forecasts at 5.4%

Brazil's unemployment rate fell to 5.4% in the second quarter of 2026, down from 6.1% in the previous quarter, matching market expectations. The number of unemployed dropped 10.9% from the previous quarter to 5.9 million. Employment gains were concentrated in transportation, storage and postal services (3.9%) and public administration, education and health services (2.6%). The broader labor underutilization rate declined to 12.9% from 14.3%, while the number of underemployed workers fell 6.6% to 4.1 million. Total employment rose 1.1% to a record 103.1 million people, lifting the employment rate to 58.8% from 58.2%. Meanwhile, average real monthly earnings were unchanged from the previous quarter at BRL 3,738.

Brazil’s unemployment rate fell to 5.6% in the rolling quarter ending in May 2026 from 5.8% in the previous period, matching forecasts and marking the lowest reading since January. The number of unemployed stood at 6.1 million, broadly unchanged from the prior quarter, while employment rose 0.5%. Sector data showed quarterly gains in transportation and public administration, while annual growth was led by agriculture, transportation, and public services. Domestic services remained the only sector to post an annual decline. The underemployed population due to insufficient working hours fell 5.7% in the quarter, while the number of discouraged workers dropped 10.2%. The informality rate edged down to 37.3% of total employment from 37.5%. Meanwhile, average real monthly earnings across all jobs held steady at BRL 3,726.

The unemployment rate in Brazil rose to 5.8% in the moving quarter that ended April of 2026 from 5.4% in the moving quarter ending in January. The increase was aligned with seasonal movements and below the market expectations of 5.9%, marking the lowest unemployment rate for an April quarter on record. The unemployed population rose by 8% from the earlier moving quarter to 6.3 million. In turn, net employment eased by 0.3% to 102.3 million. Still, average earnings inched higher to R$3,732 per month from R$3,719.