Formal Employment Grows Despite Annual Decline

Formal Jobs in Brazil showed a significant drop in the first half of 2025, with the creation of 1,222,591 new opportunities.

In this article, we will take an in-depth look at the factors that influenced this reduction, highlighting the role of the service sector in job creation and the performance of different regions.

In addition, we will discuss the profile of new hires and salary variations, as well as the negative impact observed in Espírito Santo.

Join us for a detailed analysis of the latest data on the Brazilian labor market.

Overview of Job Creation in the First Half of 2025

In the first half of 2025, Brazil generated a total of 1,222,591 new jobs with a signed employment contract, representing a drop of -6,8% compared to the same period in 2024, when the country registered around 1.31 million new formal jobs.

This decline in the number of vacancies reflects a slowdown in the growth of the labor market, in a context where most federative units, except Espírito Santo, registered an increase in the number of formal jobs, according to information from government portal.

The Services sector stood out as it accounted for more than half of the jobs created, accumulating a balance of 643,021 new jobs.

In regional terms, São Paulo led job creation, followed by Minas Gerais and Paraná, strengthening the labor market in these states.

Furthermore, most hiring was concentrated among young mixed-race people aged 18 to 24, with completed secondary education, receiving salaries between 1 and 1.5 times the minimum wage, reflecting the dynamics of the current market.

Participation of Economic Sectors in Job Creation

• Services – 52.4%
• Industry – 18.7%
• Civil Construction – 7.5%
• Agriculture – 7.5%
• Trade – 7.5%

\nThe sector of Services continues to be the highlight in the generation of formal jobs in Brazil, representing more than half of the vacancies created in the first half of 2025. This predominance is due to their capacity for constant adaptation and innovation, in addition to covering a wide variety of activities such as health, education, technology and tourism Ministry of Labor Report.

The continued growth of this sector has boosted the national economy, creating opportunities for young people and qualified professionals, making it an essential pillar for the country's economic development.

Regional Highlights in Job Creation

During the first half of 2025, São Paulo led the creation of formal jobs, demonstrating its industrial and commercial strength.

Minas Gerais and Paraná also stood out, reflecting the economic growth in these areas.

In June, 166,621 new jobs were created in the country, showing stability and confidence in the market.

Nonetheless, Espírito Santo was the exception, ending the month with a significant drop of 3,348 jobs, reflecting local economic challenges that contrast with the national scenario.

Despite this, 26 of the 27 federative units registered growth, confirming a general positive trend in job creation.

New Hires' Profile and Salary in June 2025

The Brazilian labor market in June 2025 highlighted the hiring predominantly of young mixed-race people between the ages of 18 and 24.

This specific group proved to be the main workforce among new formal admissions, reflecting a strong market preference for young people with energy and flexibility.

The emphasis in hiring fell on those who had Complete High School, confirming the importance of this level of education as a minimum condition for many jobs.

Furthermore, these young people received salaries ranging from 1 to 1.5 times the minimum wage, which represents an alignment with the average salary of the period, situated at R$ 2.278.

To explore more about the economic context of this scenario, access detailed information on the portal Government news on employment.

This demographic trend highlights the search for profiles that combine young capabilities with basic qualifications, providing a solid foundation for growth in the country's formal market.

Total Stock of Formal Jobs in Brazil

By June 2025, Brazil had reached the mark of approximately 48.42 million of formal jobs, a significant amount in the national economic context.

This number reflects continued growth in the formalization of the labor market, an indication of economic health and income generation.

With the Services sector leading the creation of new jobs, followed by Industry and Civil Construction, the diversification and dynamism of the Brazilian economy is evident.

The role of states like São Paulo, which has excelled in job creation, is crucial to sustaining this expansion.

São Paulo surpassing 349 thousand new vacancies in 2025.

This level of formal employment is vital for the formulation of public policies that further encourage the absorption of young and qualified labor, essential for increasing productivity and national competitiveness.

The predominant demand among young people aged 18 to 24 with a high school diploma also highlights the importance of investing in education and professional qualifications, preparing the workforce for present and future challenges.

Formal Jobs remain a central concern, especially given the 6.8% drop in job creation.

Despite the challenges, some sectors, such as services, stand out in generating new opportunities.

The future of the labor market in Brazil remains uncertain.