---
title: "103.5 Million People Now Work in Brazil as the Jobless…"
canonical: "https://www.metaintro.com/blog/brazil-unemployment-5-3-percent-103-5-million-employed"
language: "en"
author: "drashtigarach"
published: "2026-09-30T13:08:07.000Z"
modified: "2026-09-30T13:24:15.218Z"
---

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# 103.5 Million People Now Work in Brazil as the Jobless Rate Holds at 5.3 Percent

Brazil's jobless rate held at 5.3% in June to August as employment hit 103.5 million. Which sectors grew, what happened to pay and what job seekers can do.

[![Drashti Garach](https://cdn.metaintro.com/rs:fill:40:40/q:72/plain/images/5719d740-e510-42bc-8017-e040d145f35f_1766029465094.png)Drashti Garach @DrashtiGarach](/blog/author/drashtigarach)

[September 30, 2026](/blog/archive/2026/09)12 min read

![A residential tower block under construction with a yellow crane against green hills and blue sky](https://cdn.metaintro.com/rs:fill:1200:675/q:78/plain/images/final-10403.jpg)

[https://x.com/intent/tweet?text=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed](https://x.com/intent/tweet?text=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent&url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed)[http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed](http://www.facebook.com/sharer.php?u=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed)[https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed&title=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent](https://www.linkedin.com/sharing/share-offsite/?url=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed&title=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent)[mailto:?subject=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed](mailto:?subject=103.5%20Million%20People%20Now%20Work%20in%20Brazil%20as%20the%20Jobless%20Rate%20Holds%20at%205.3%20Percent&body=https%3A%2F%2Fwww.metaintro.com%2Fblog%2Fbrazil-unemployment-5-3-percent-103-5-million-employed)

Brazil's unemployment rate was [5.3% in the three months through August](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), the lowest rate ever recorded for that period, and the number of people in work reached a record [103.5 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). The figures come from the PNAD Contínua household survey that the [Brazilian Institute of Geography and Statistics](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e) released on [Tuesday](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml). The rate is a record for the period, but it is [not an all-time low](https://sidra.ibge.gov.br/tabela/6381), average pay was [statistically stable on the quarter](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), and [37.5% of the employed](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) still work informally. For [Metaintro](https://www.metaintro.com) readers looking for work in Brazil, or hiring there, the useful detail sits inside the release itself, in which sectors gained workers, which workers saw their pay rise and how many still sit outside formal contracts.

## How Low Is 5.3 Percent, Really?

It is [a record for the time of year](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), not [a record for the series](https://sidra.ibge.gov.br/tabela/6381). The rate for June to August was the [lowest rate ever recorded for the period](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), down from [5.6% in the quarter through May and 5.6% a year earlier](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). The lowest reading in the whole series is still [5.1%, set in the quarter from October to December 2025](https://sidra.ibge.gov.br/tabela/6381), and no rolling quarter since then has come in below 5.3%, according to [the IBGE historical table](https://sidra.ibge.gov.br/tabela/6381).

The rate also [did not move](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml) from the previous rolling quarter. In the three months through July, unemployment was [also 5.3%](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), so the rate was unchanged on the previous rolling quarter even though it fell against the quarter through May. The result matched the median forecast of [17 consulting firms and financial institutions](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml) surveyed by Valor Data, whose projections ranged from 5.2% to 5.4%.

Seasonally adjusted, the rate edged up from 5.42% in July to 5.44% in August in [Banco Safra's seasonally adjusted figures](https://oespecialista.safra.com.br/desemprego-pnad-mercado-trabalho/), a small change that kept it close to the levels seen since the fourth quarter of 2025.

The count of [unemployed people fell](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml). An average of [5.8 million people](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml) were unemployed from June through August, which is 281,000 fewer than in the quarter through May and 300,000 fewer than a year earlier.

## What Does the PNAD Contínua Survey Actually Count?

The PNAD Contínua is [a household survey](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e), not a count of payroll records. Its unit of investigation is [the household](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e), and it has run nationwide on a permanent basis since January 2012, after an experimental start in October 2011.

The monthly figures are [not single months](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e). Each monthly release uses the last three consecutive months of interviews, so consecutive releases share two months of data, and the indicators reflect the [rolling quarter ending in each month](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e) rather than the month itself. That is why [the release published in late September](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) describes June, July and August together.

The definitions matter for anyone reading the numbers. The unemployed are people [aged 14 and over who were looking for work](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml) but could not find a job, and the employed population includes employees, employers and public-sector workers. [Discouraged workers](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) are reported as a separate group from the unemployed.

## Which Sectors Gained Workers?

Employment grew by [774,000 people](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) on the quarter, up 0.8%, and by 1.1 million people on the year. The labour force, meaning everyone working or looking for work, reached [109.3 million people](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), the largest in the series.

Two sectors had [significant quarterly gains](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). Against March to May, employment rose in general industry by [2.0%, or 265,000 people](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), and in construction by 4.1%, or 306,000 people. The other activity groups showed [no significant change on the quarter](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

Over the year, [a different group](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) stood out. Compared with June to August 2025, the one activity group with a significant rise was [transport, storage and mail, up 6.1%](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), or 358,000 more people. The other activity groups showed no significant change on the year in [the same release](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

For job seekers, the pattern is useful. Construction, industry and transport workers are in the [groups whose employment rose](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), while the other activity groups showed no significant change in statistical terms.

> The informality rate was 37.5% of the employed population (or 38.8 million informal workers), according to [our translation of the IBGE release](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

## What Happened to Pay, and Which Workers Gained Most?

Pay was [statistically stable on the quarter and up on the year](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml). Average usual real earnings from all jobs were [R$3,777 a month](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), up 0.7% from the quarter through May, a change the statistics office classifies as statistically stable because it falls within the survey's margin of error. Against the same quarter of 2025, average income was [up 3.7%, or R$136](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml).

[The total wage bill](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) grew faster than individual pay. Total usual real earnings reached [R$385.6 billion](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), the highest in the series, up 1.4% on the quarter and 4.8% on the year.

The gains were [concentrated](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). Over the year, average monthly earnings in the main job rose significantly in [only three activity groups](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

- **Industry workers** earned 4.0% more, an extra R$141 a month, in [the IBGE figures](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).
- **Retail and vehicle repair workers** earned 4.8% more, or R$140 a month, in [the same release](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).
- **Domestic workers** earned 4.6% more, or R$64, and theirs was also the only group with a quarterly rise, of [2.3%, or R$33](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

Compared with a year earlier, earnings rose for employees with a signed work card by [2.4%, or R$81](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), for domestic workers by 4.6%, and for the self-employed by 5.3%, or R$159. The self-employed recorded the [largest percentage rise](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) of the positions with a significant gain.

## How Many Workers Are Still Informal?

Formal private-sector employment is [at a record](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), while informal work remains widespread. Private-sector employees with a signed work card, excluding domestic workers, numbered [39.5 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), the highest level in the historical series, and stable both on the quarter and on the year.

Private-sector employees without a signed card numbered [13.7 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), the self-employed 26.1 million and domestic workers 5.5 million, all stable on the quarter and the year.

The informality rate was [37.5% of the employed](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), up from 37.3% in the quarter through May and down from 38.0% a year earlier. In people, the latest figure is [38.8 million informal workers](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), against 38.9 million a year earlier.

These formal workers are [employees with a carteira assinada](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), a signed work card. Readers following formal-contract rules can also read about [the proposal to end Brazil's six-day workweek](https://www.metaintro.com/blog/brazil-six-day-workweek-end-36-hour-cap-global-employers).

## How Much Slack Is Left Beyond Unemployment?

Unemployment is only one measure of slack. The composite underutilization rate was [13.1%](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), stable on the quarter and down from 14.1% a year earlier. That rate covers [15.0 million people](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto).

Underemployment is [lower than a year ago](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). The number of people working fewer hours than they want fell [6.2% year over year to 4.3 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), while the discouraged population declined 11.9% to 2.4 million.

The group [outside the labour force grew on the year](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto). People neither working nor looking numbered [66.4 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), stable on the quarter and up 0.9% on the year. The employment level, the share of working-age people who have a job, was [58.9%](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), up on the quarter and stable on the year.

## What Do the Formal Payroll Records Add?

A [second release on the same day](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano) covers formal jobs only. The [Ministry of Labour and Employment](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano) publishes the Novo Caged register of formal employment. In August, the formal market added [165,827 jobs](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), the result of 2,294,563 hires and 2,128,736 separations, taking the stock of formal contracts to 48,244,696.

[Every broad sector added jobs](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano) in August. Services added [110,346](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), construction 20,848, industry 16,613, retail 16,565 and agriculture 1,452. Over January to August, construction payrolls grew [by 200,431 jobs, up 6.79%](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), against 3.05% for services, which added the most jobs.

For the population aged up to 24 years, the August balance was [128,997](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), and workers who had completed secondary school had the largest balance by education level, at 100,939. Not every new contract is [a typical one](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano). Of the jobs created in August, [73.5% were typical contracts and 26.5% non-typical](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), and the non-typical group was made up mostly of workers on 30 hours a week or less, at 40,661, and apprentices, at 17,637. For a school leaver, that means apprentices and staff on 30 hours a week or less were part of the net gain in formal jobs, based on [the ministry's August figures](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano).

Starting pay in formal jobs [was stable on the month](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano). The average real hiring wage in August was [R$2,410.74](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), stable against July and up 1.02% on August 2025.

> Brazil's unemployment rate fell to 5.3% in the three months through August, the lowest rate ever recorded for the period, according to [the Valor International report](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml).

## Is Formal Job Creation Slowing Down?

Yes, [compared with recent years](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html). The January to August total of [1,134,033 formal jobs](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html) is the lowest for that period since 2020, and it is 25.2% below the 1,516,881 jobs created in the same months of 2025. August itself was the second-weakest August since the Novo Caged series began in 2020, ahead only of [August 2025, when the balance was 154,683](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html).

The August number still [beat expectations](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html). The median forecast in the Projeções Broadcast survey was [93,486 jobs](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html), and July's balance was 55,915 after revisions.

A slow, [gradual accommodation](https://oespecialista.safra.com.br/desemprego-pnad-mercado-trabalho/) of the labour market is the outlook in Banco Safra's analysis, with the jobless rate moving near current levels, as restrictive monetary policy tends to cool activity, moderate job creation and slow wage growth. Seasonally adjusted average nominal effective income rose [0.6% in August, below the 0.9% rise in July](https://oespecialista.safra.com.br/desemprego-pnad-mercado-trabalho/), and the participation rate stayed at 62.1%.

## Which States Are Adding Formal Jobs?

In August, [São Paulo added 42,533 formal jobs](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), Rio de Janeiro 20,886 and Pernambuco 13,428. In relative terms, the strongest August growth was in [Paraíba, up 1.59%](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), followed by Amapá and Rio Grande do Norte.

For the year so far, São Paulo has added [306,883 formal jobs](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano) from January to August, Minas Gerais 123,176 and Rio de Janeiro 77,670. The fastest relative growth was in [Amapá, up 6.30%](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano), Piauí and Acre.

At the other end, [Alagoas had a negative balance](https://www.jornaldocomercio.com/economia/2026/09/1265045-caged-saldo-liquido-de-emprego-formal-e-positivo-em-165-827-vagas-em-agosto.html) for the year to August, with Rondônia and Roraima showing the next smallest balances.

## What This Means for Job Seekers, and What Should You Do Next?

Industry and construction were the only activity groups with [significant quarterly employment gains](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), with transport the standout over the year, while the other groups showed no significant change. Pay tells a similar story. Real earnings are [higher than a year ago but statistically stable on the quarter](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), and nominal income growth slowed from 0.9% in July to 0.6% in August in [Banco Safra's seasonally adjusted figures](https://oespecialista.safra.com.br/desemprego-pnad-mercado-trabalho/).

With [38.8 million informal workers](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), a signed contract is worth pushing for, and formal employers made [2,294,563 hires in August](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano) for a net gain of 165,827 jobs. Readers weighing work abroad can compare these figures with [what Spain did to pull its unemployment down](https://www.metaintro.com/blog/spain-unemployment-down-to-nordic-levels-2026).

Here is what we would do:

- **Follow the sectors that are adding workers.** Construction, industry and transport are where the [household survey shows significant growth](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), and construction payrolls grew 6.79% this year in the [Novo Caged data](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano).
- **Ask for the carteira assinada.** Private employees with a signed card numbered [39.5 million](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), against 13.7 million without one, so ask which one an offer is.
- **Benchmark your pay.** Average usual earnings were [R$3,777 a month](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) in the latest quarter, so use that as a reference point, not a target, when you compare offers. The average real hiring wage for new formal hires was [R$2,410.74 in August](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano).
- **Look beyond São Paulo.** Amapá, Piauí and Acre grew formal jobs fastest in percentage terms from January to August, based on the [ministry's state table](https://www.gov.br/trabalho-e-emprego/pt-br/noticias-e-conteudo/2026/setembro/novo-caged-emprego-formal-gera-165-8-mil-vagas-em-agosto-e-acumula-1-13-milhao-de-postos-no-ano).
- **Watch the next release.** The survey reports a rolling quarter each month, so the next figures will show whether the rate holds, and the [IBGE survey page](https://www.ibge.gov.br/estatisticas/sociais/populacao/9171-pesquisa-nacional-por-amostra-de-domicilios-continua-mensal.html?edicao=45754&t=o-que-e) explains how to read them.

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## People Also Asked

### Q: Is 5.3 percent the lowest unemployment rate Brazil has ever recorded?

A: No. It is the [lowest rate ever recorded for the June to August period](https://valorinternational.globo.com/economy/news/2026/09/29/brazil-unemployment-rate-falls-to-record-low-53percent.ghtml), but the lowest reading in the series is [5.1%, from the October to December 2025 quarter](https://sidra.ibge.gov.br/tabela/6381).

### Q: Which sectors in Brazil added workers?

A: The only groups with significant rises were [construction and general industry on the quarter](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto), up 306,000 and 265,000 people, and transport, storage and mail over the year, up 358,000.

### Q: How many Brazilian workers are informal?

A: The informality rate was [37.5% of the employed, or 38.8 million workers](https://agenciadenoticias.ibge.gov.br/agencia-sala-de-imprensa/2013-agencia-de-noticias/releases/48148-pnad-continua-taxa-de-desocupacao-e-de-5-3-e-taxa-de-subutilizacao-e-de-13-1-no-trimestre-encerrado-em-agosto) in the June to August quarter.

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