Brazil’s Unemployment Falls to 5.2%, Lowest Since 2012
Figures from the Brazilian Institute of Geography and Statistics (IBGE) show the rate fell by 0.2 percentage points.
Quick overview
- Brazil's unemployment rate fell to 5.2% from September to November, the lowest in over a decade.
- The decline was primarily due to job creation in public administration and social services, with approximately 492,000 new jobs added.
- Despite the positive employment trends, 37.7% of workers remain in the informal sector, indicating ongoing structural challenges.
- Public optimism is rising, with 69% of Brazilians believing their personal situation will improve by 2026, coinciding with significant presidential elections.
Brazil’s unemployment rate dropped to 5.2% in the September–November period, marking its lowest level in more than a decade.
The decline was driven mainly by job creation in public administration and social services, according to data released on Tuesday.
Figures from the Brazilian Institute of Geography and Statistics (IBGE) show the rate fell by 0.2 percentage points compared with the previous rolling quarter, which had already set a historical low. On a year-on-year basis, unemployment also declined from 6.1% in the same period of 2024.
The data reflect the creation of approximately 492,000 new jobs in sectors including public administration, defense and security, education, and social services.
Labor Market Resilience Despite External Pressures
This reading is the lowest in the IBGE’s unemployment series, which began in 2012, underscoring the resilience of Brazil’s labor market despite external challenges. During part of the period, Brazilian exports faced U.S. tariffs of up to 50% on several products, in effect from August 6 through mid-November.
In mid-November, U.S. President Donald Trump lifted surcharges on many agricultural products following a meeting with Brazilian President Luiz Inácio Lula da Silva. Brazil is the world’s largest exporter of commodities such as beef and coffee, although some sectors—notably machinery—continue to be affected by U.S. trade measures.
Despite the improvement in employment, informality remains high. About 37.7% of Brazilian workers are still employed in the informal sector, highlighting structural challenges in the labor market.
Optimism Builds Ahead of 2026
Public sentiment has also improved. According to a survey by Datafolha, 69% of Brazilians believe their personal situation will improve in 2026, up from 60% in a similar survey conducted in 2024. At the national level, 60% of respondents expect 2026 to be a better year for Brazil, compared with 47% previously.
Asked whether 2026 would be better, the same, or worse than 2025, 16% said it would be the same, 11% expected it to worsen, and 3% were undecided.
The year 2026 will be politically significant for Brazil, as the country heads into presidential elections, with incumbent President Lula da Silva seeking re-election for a fourth term.
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