Brazil’s Labor Market Gains Momentum: Unemployment at Lowest Since 2012

Official data from the Brazilian Institute of Geography and Statistics (IBGE) show that Brazil’s unemployment rate fell to 6.2% in the three months ending in May 2025. This is the lowest level for this period since 2012.

The rate improved from 6.8% in the previous quarter and 7.1% a year ago. The number of unemployed people dropped to 6.8 million, nearly one million fewer than last year.

The total number of employed Brazilians reached 103.9 million, up 1.2% from the previous quarter. More people now work in jobs with formal contracts, which offer better pay and more security. The number of workers with these contracts reached a record 39.8 million.

At the same time, the share of informal workers—those without formal contracts—fell to 37.8%, the lowest since the pandemic. This means 39.3 million people still work informally, but the trend is moving toward more formal jobs.

Average monthly wages rose to R$3,457, about 3.1% higher than last year. This growth is just above inflation, so workers have a bit more buying power.

The number of self-employed workers stayed steady at 26.1 million, and more of them have registered their businesses, giving them more stability.

The share of people who are unemployed, underemployed, or not looking for work but available for a job stayed stable. This shows the job market absorbed temporary jobs created at the end of last year without major problems.

Experts say that the rise in formal jobs and the drop in unemployment make the job market stronger. This helps businesses and the economy because people with steady jobs can spend more and plan for the future.

Brazil’s job market in 2025 shows slow but steady improvement. More people have stable jobs, and fewer are left out. These changes help the country’s economy grow and give workers better chances for a secure future. All figures and claims come from official IBGE data.

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