Brazil's Unemployment Rate Hits Historic Low of 5.6% in Q3 2025
Brazil's unemployment rate fell to a historic low of 5.6% in Q3 2025, with employment hitting record highs and real wages rising, according to IBGE.
- • Unemployment rate dropped to 5.6%, lowest since 2012.
- • Unemployed population decreased to approximately 6 million, down 3.3% from the previous quarter.
- • Employment reached a record 102 million, with formal employment at 39.2 million.
- • Average real income rose 4% to R$3,507 compared to Q3 2024.
Key details
Brazil's unemployment rate dropped to 5.6% in the third quarter of 2025, marking the lowest level since the Brazilian Institute of Geography and Statistics (IBGE) began tracking this data in 2012. This figure represents a significant improvement, with the rate decreasing by 0.8 percentage points compared to the same quarter in 2024 and remaining stable from the previous quarter, according to multiple IBGE reports.
The total number of unemployed individuals stands at approximately 6.045 million, a 3.3% decline from the previous quarter and an 11.8% drop compared to Q3 2024. Concurrently, employment grew to a record 102 million people, reflecting a 1.4% increase from the prior year. The employment rate for this period held steady at 58.7%, while the workforce, which comprises both employed and unemployed people, reached an estimated 108.5 million—0.5% higher than in 2024.
Formally employed workers, those with a registered contract, also reached a new high of 39.2 million. The average real income of Brazilian workers increased by 4% year-over-year to R$3,507 in the quarter ending September 2025.
Sector-specific data show growth in agriculture, livestock, forestry, fishing and aquaculture, as well as construction, each expanding employment by around 3.4%. However, there were declines in commerce, vehicle repair, and domestic services. Notably, domestic services saw a decrease of 5.1% compared to last year. Other sectors, including transportation, warehousing, postal services, and public administration, also reported employment gains.
Despite these positive labor market trends, the informal economy still comprises 37.8% of the workforce, remaining stable from the previous quarter but down by one percentage point compared to 2024.
The Brazilian economy grew by 3.4% in 2024, though forecasts for 2025 predict a slowdown to around 2.3%, influenced by high interest rates and challenging international conditions.
IBGE highlighted that while the unemployment rate of 5.6% slightly exceeded some projections, it remains a historical low. Projections for the end of 2025 estimate the unemployment rate to hover around 5.7%.