Brazil Unemployment Rate Falls to 5.3% as Jobs Hit a Record
Brazil's jobless rate fell to 5.3% in the three months through July, with employment at a record 103.3 million. XP has already trimmed its year-end policy rate call to 13.25%. The post Brazil Unemployment Rate Falls to 5.3% as Jobs Hit a Record appeared first on The Rio Times .
The Brazil unemployment rate dropped to 5.3% in the quarter ending July 2026, according to the Brazilian Institute of Geography and Statistics. This marks a record high of 103.3 million people in employment, with 5.8 million fewer individuals classified as unemployed compared to the previous quarter. Despite the improvement, Brazil is still operating near full employment levels, as the underutilization rate stands at 13.0%.
Informal work accounts for 38.8 million people, comprising 37.5% of the employed workforce. Construction added 371,000 jobs in the quarter, while domestic service saw a decline of 229,000 positions over a year. The average wage, dubbed rendimento real habitual, remained stable at R$3,762 (US$728) per month, up 3.3% compared to July 2025.
Formal private sector payrolls reached 39.4 million, a new record. The main driver behind the wage stagnation is the recent hiring of new entrants at lower wage levels. The Central Bank of Brazil's Selic rate is expected to remain at 13.25% at the end of 2026, with potential cuts following if economic growth slows.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
