STORY-TRÅD·ekonomi

Unemployment drops to 5.3%, lowest for the quarter ending in July

The unemployment rate for the quarter ending in July stood at 5.3 percent. This represents the lowest level for this three-month period in the entire time series of the Continuous National Household Sample Survey (PNAD), which began in 2012. In the previous quarter, ending in April, the rate was 5.8 percent. In the same period last year, it was 5.6 percent. Notícias relacionadas:Brazil creates over 767,000 new jobs in 2026.Silver economy reveals power of consumers, entrepreneurs 60+.The data were released Thursday (Aug. 27) by the statistics bureau IBGE. The survey revealed that the number of employed people reached 103.3 million, a record high in the time series. The number of formally employed workers (excluding domestic workers and civil servants) was 39.4 million, also the highest in the historical series. Meanwhile, the number of workers without a formal employment contract stood at 13.8 million, a 3.6 percent increase compared to the period ending in April (an additional 477,000 people). According to survey analyst William Kratochwill, employment growth in the quarter ending in July was driven by the civil construction sector. He also noted that technological changes have made it easier to find work. “These days, with a phone and a bicycle, you can get a job. Technology is changing the labor market,” he noted. Employment in the transportation, warehousing, and mail sector – which includes app-based delivery workers – grew by 5.4 percent compared to the same quarter of 2025. The number of unemployed stood at 5.8 million, representing a decrease of 503,000 people (an eight percent drop) compared to the February–April quarter. The informality rate was 37.5 percent. As of April, it stood at 37.2 percent. The IBGE classifies as informal workers those without official registration, as well as self-employed individuals and employers who are not registered as legal entities. These individuals are not guaranteed benefits such as unemployment insurance, vacation pay, and a Christmas bonus. The discouraged labor force – people who were not looking for work because they believed they would not be able to find a job – totaled 2.3 million people, a 9.7 percent decline for the quarter. The average worker’s income stood at BRL 3,762, a 0.7 percent decline compared to the period ending in April. The IBGE classifies this change as “stable.” The survey The IBGE survey tracks labor market trends for people aged 14 and older and takes into account all forms of employment – including formal and informal jobs, temporary positions, and self-employment, for example. According to the institute’s criteria, only those who actively sought a job within 30 days prior to the survey are considered unemployed. The survey visits 211,000 households across all Brazilian states and the Federal District.