Brazil Unemployment Falls in July

Brazil’s unemployment rate edged down to 5.2% in the rolling quarter ended September 2026, from 5.3% in the previous period, matching market expectations and marking its lowest level since December 2025. The number of unemployed fell 4% quarter-on-quarter to 5.6 million. The employed population rose by 0.6% to 103.6 million, bringing the employment rate to 59%. The labor force participation rate remained unchanged at 62.2%. Private-sector employees with formal contracts, excluding domestic workers, were broadly stable at 39.4 million, the highest level on record. Meanwhile, the composite underutilization rate held at 13%, with 4.3 million people working fewer hours than desired and 2.5 million discouraged from seeking employment. Average real monthly earnings edged up to R$3,790.

Brazil’s unemployment rate stood at 5.3% in the rolling quarter ended in August 2026, unchanged from the previous quarter and matching market expectations. It was the lowest rate since December 2025. The unemployed population fell 4.9% year over year to 5.8 million. The number of private-sector employees with a formal contract, excluding domestic workers, was 39.5 million, the highest level in the historical series, and was broadly stable both quarter over quarter and year over year. The composite underutilization rate was 13.1%, also broadly stable. The population working fewer hours than desired fell 6.2% year over year to 4.3 million, while the discouraged population declined 11.9% to 2.4 million. The informality rate was 37.5%, equivalent to 38.8 million workers. Average real monthly earnings were broadly stable at R$3,777.

Brazil’s unemployment rate fell to 5.3% in the rolling quarter ended in July 2026, down from 5.8% in the previous quarter and matching market expectations. This was the lowest rate since December 2025. The unemployed population declined 8.0% to 5.8 million, while the employed population rose 1.0% to a record 103.3 million. Formal private-sector employment also reached a record 39.4 million, lifting total private-sector employment to 53.2 million. The composite underutilization rate fell to 13% from 13.8% in the previous quarter, while the number of people working fewer hours than desired was broadly stable at 4.2 million. Meanwhile, average real monthly earnings remained broadly stable at R$3,762.