Unemployment in Brazil Falls to Lowest Level Since 2012

The Unemployment Rate in Brazil shows a significant decline, reaching 5.6% in July 2025, the lowest level since 2012. This article will explore the factors that contributed to this reduction, including the increase in the employed population, the growth in the number of formal workers and changes in average monthly income.

Furthermore, the impact of the occupation on the public administration, health and agriculture sectors will be discussed, as well as future expectations for the economy and inflation.

We will analyze in detail the data and projections that shape the Brazilian labor market scenario.

Historic Drop in Unemployment in July 2025

The drop in the unemployment rate to 5,6% July 2025 marks a turning point in Brazil's economy, reaching its lowest level since 2012. This significant reduction cannot be attributed to a single factor, but rather to a series of events and policies that stimulated the labor market.

The impact of this improvement is visible in several sectors, especially those that have been significantly boosted, such as public administration, health, social services and agriculture.

Such advances are products of a more favorable economic scenario.

The data surprised analysts and economists, highlighting the need to achieve a balance with inflation that accompanies the increase in family consumption.

• Improvement of the macroeconomic environment;
• Effective government policies;
• Recovery of fundamental sectors.

The expectation of further declines in the unemployment rate raises concerns about possible inflationary pressures.

Like this, the Central Bank keeps the Selic rate high until the end of 2025, ensuring economic stability in the face of accelerated growth.

Current economic conditions offer an opportunity to strengthen labor market infrastructure by promoting more formal employment and increasing average earnings, which have recently risen. 4%, reaching R$ 3,484 per month.

Labor Market Structure in 2025

In 2025, the Brazilian labor market presents a remarkable structure, with the employed population reaching 102.4 million people.

The growth in formalization is evident, with 39.1 million workers having a formal employment contract, reflecting a significant advance in the quality of jobs.

Furthermore, informality saw a significant decline, reaching 37.8%, while the average monthly income rose to R$ 3,484, highlighting a more favorable scenario for workers.

Employed Population and Formal Employment Contract

In July 2025, the employed population in Brazil achieved a significant milestone reaching 102.4 million people.

This impressive growth reflects the dynamism of the public administration, health, social services and agriculture sectors.

Notably, workers with formal employment contracts have advanced to 39.1 million, highlighting the strengthening of the formal market.

This represents not only more security for employees, but also contributes to the national economy.

According to the IBGE, such advances are essential for the country's sustainable development.

As shown in the table below, the 2025 numbers are records:

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Average Income and Informality

The significant increase in average monthly income for R$ 3.484, representing an increase of almost 4%, reflects a positive trend in the Brazilian labor market in 2025. According to recent analyses, this increase is associated with the strengthening of sectors such as public administration, health and social services.

The reduction of informality to 37,8% suggests a improvement in quality employment, expanding coverage for workers with formal employment contracts.

According to a renowned economist, “the new wage levels and reduced informality boost domestic consumption, although there is concern about their impact on inflation.”

For more details on economic data, visit the Economic Report 2025.

These advances demonstrate that Brazil is moving towards a more solid and formalized structure, which benefits both workers and employers.

Sectors that Boosted Job Creation

The sectors of public administration, health, social services It is agriculture played a crucial role in job creation in Brazil by 2025. The combined efforts of these sectors resulted in significant growth in the number of formal jobs, strengthening the country's labor market.

Experts point out that the public administration stood out by implementing policies that encouraged hiring, especially in underrepresented areas.

The sector of health, in turn, received investments that enabled the expansion of medical services, increasing the demand for qualified professionals, which was essential for the creation of new vacancies.

Us social services, the growing importance of social support programs has fueled the demand for workers engaged in improving the well-being of communities.

In the field of agriculture, technological advances and sustainable practices have strengthened production, driving the need for skilled labor.

This growth is corroborated by government reports, which highlight the creation of more than 1.34 million formal jobs in 2025, as disclosed in a government analysis of the impact on employment.

These sectors have proven to be fundamental to Brazil's economic recovery, creating a virtuous cycle of growth and stability in the labor market.

Perspectives and Challenges for 2025

The Brazilian economic scenario for 2025 points to a continued reduction in the unemployment rate, which reached 5.6% in July, the lowest level since 2012. as reported.

This improvement is mainly due to the recovery in the public administration, health, social services and agriculture sectors.

However, the increased household consumption and its possible pressure on the inflation raise concerns, especially considering the prospect of a Selic raised by the end of 2025 according to market projections.

Rising consumption expectations can drive growth, but require attention to absorption capacity without generating significant inflationary pressures.

• Persistent inflation due to heated consumption;
• Adjustment risks in monetary policy;
• Possible external shocks affecting the national economy;

The Unemployment Rate falling reflects advances in the Brazilian labor market, but the impact of household consumption on inflation and expectations for the Selic rate indicate that the economic situation requires continued attention.

The future, therefore, demands caution and vigilance.