Brazil Achieves Historic Low Unemployment and Surges as a Top Global Investment Destination in 2025
In 2025, Brazil records its lowest unemployment rate since 2012 alongside becoming the world's second-largest recipient of foreign direct investment, reflecting strong economic growth and labor market improvements.
- • Unemployment rate in Brazil drops to 5.6%, lowest since 2012, with 6.045 million unemployed.
- • Formal employment reaches 39.2 million and average income rises to record R$ 3,507.
- • Brazil ranks second globally in foreign direct investment, attracting $38 billion in the first half of 2025.
- • FDI growth attributed to reinvestment of profits and strong sectoral diversification including renewable energy and technology.
Key details
Brazil has marked significant economic milestones in 2025, reaching its lowest unemployment rate in over a decade and rising as a major global destination for foreign direct investment (FDI).
According to data from the IBGE, Brazil's unemployment rate fell to 5.6% in the third quarter of 2025, the lowest level since 2012. The number of unemployed individuals dropped to 6.045 million, reflecting an 11.8% decrease compared to 2024 and a 3.3% decline from the previous quarter. Employment remains stable at a record 102.4 million workers, with formal employment hitting an all-time high of 39.2 million. Average real incomes also rose to R$ 3,507, showing a 0.3% quarterly increase and a 4% rise over the year. Underemployment and discouraged workers reached historic lows of 13.9% and 2.6 million respectively, highlighting stronger workforce utilization and renewed labor market confidence. (Source: 124824)
In parallel, Brazil became the second-largest recipient of FDI worldwide in the first half of 2025. The country attracted $38 billion, a substantial 48% increase over the $25.6 billion received during the same period in 2024, second only to the United States. The Organization for Economic Cooperation and Development (OECD) attributes this growth to reinvested profits and intra-company loans, underscoring multinational companies’ increasing commitment to Brazil amid global uncertainties. Brazil's diverse economy—spanning renewable energy, manufacturing, agribusiness, and technology—and a strong domestic market underpin this investment surge. Brazil leads alongside China and India among G20 emerging economies in FDI growth. (Source: 124822)
These developments indicate a robust and resilient Brazilian economy in 2025, with significant improvements in labor market conditions and investor confidence. The combination of record low unemployment and escalating foreign investment is poised to foster sustainable economic growth moving forward.
As Brazil continues to consolidate these gains, the coming months will likely see a positive cycle of increased consumption, production, and further job creation.