Brazil created 137,303 formal jobs in January 2025, according to the Ministry of Labor and Employment’s CAGED report released on February 26.
This figure far exceeded economists’ forecasts, which had anticipated a median net creation of just 51,508 positions. The strong result came from 2,271,611 new hires and 2,134,308 dismissals during the month.
Despite outperforming expectations, January’s job growth marked a 20.7% decline compared to the same month in 2024, when 173,233 jobs were created.
However, it still represented a significant improvement over January 2023’s net gain of 83,297 jobs. Labor Minister Luiz Marinho had earlier hinted at the robust performance, predicting over 100,000 new positions for the month.
Four out of five sectors contributed to the positive balance. Manufacturing led with 70,428 new jobs, followed by construction with 38,373 positions and agriculture with 35,754 roles.
The services sector added 45,165 jobs but was partially offset by a loss of 52,417 positions in vehicle trade and repair. Regionally, the South (65,712) and Central-West (44,363) saw the largest gains, while the Northeast reported a net loss of 2,671 jobs.
Brazil’s Labor Market
The average starting salary for newly hired workers was R$2,251.33 ($375), up from R$2,162.32 ($360) in December 2024. Meanwhile, those leaving their jobs earned an average of R$2,265.01 ($378), slightly lower than December’s R$2,289.58 ($382).
These wage figures reflect ongoing adjustments amid inflationary pressures and economic uncertainties. Temporary contracts also played a role in job creation. Brazil recorded a net increase of 39,763 positions for temporary workers and apprentices in January.
This figure resulted from 332,820 hires and 293,057 dismissals under these categories. While Brazil’s labor market has shown resilience with historically low unemployment rates—6.1% at the end of 2024—economists warn that high interest rates and fiscal constraints could slow job creation later this year.
The SELIC rate remains elevated at 14.75%, potentially dampening consumption and investment. January’s strong performance highlights Brazil’s ability to sustain job growth despite economic headwinds.
However, maintaining this momentum will depend on navigating inflationary challenges while capitalizing on emerging opportunities in key sectors like technology and services.