Brazil's unemployment rate fell to 5.3% in the three months to July, the lowest level since the government's official series began in 2012, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) on Thursday.
The rate declined from 5.8% in the prior three-month period and compared with 5.6% a year earlier. The number of unemployed people totaled 5.819 million, down 8.0% quarterly and 4.9% year-over-year. The employed population reached a record 103.335 million, up 1.0% from the previous quarter and 0.9% from a year ago.
Formal private sector employment, measured by workers with signed work booklets, rose to 39.428 million, the highest in the historical series, increasing 0.4% from the prior three-month period and 0.8% year-over-year. Informal employment, excluding those with formal contracts, grew to 13.753 million, up 3.6% quarterly and 2.1% annually.
Average monthly income in the period fell to R$3,762 from R$3,786 in the prior three-month period, a 0.7% decline. The Central Bank's Monetary Policy Committee (Copom) reduced the Selic rate by 25 basis points earlier in August, bringing it to 14.0% per year.
IBGE analyst William Kratochwill noted the labor market appears balanced and has adapted to the current interest rate environment. He highlighted civil construction as a key driver of job growth, signaling continued economic resilience. Kratochwill also suggested upcoming elections could temporarily boost hiring, while recent job gains may reflect an influx of workers earning closer to average wages, weighing on income growth.
