Data released by the General Register of Employed and Unemployed Persons (CAGED), of Brazil’s Ministry of Labor and Employment, show that 165,827 formal jobs in the private sector were created in August. The indicator measures the difference between hires and layoffs.

The net figure is 183.1 percent higher than in July’s 58,568.

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Job creation rose 7.2 percent compared to August last year, driven by high interest rates and the economic slowdown. In August 2025, 154,683 jobs had been created, as per to seasonally adjusted data, which accounts for late filings by employers.

Compared to August figures since 2020, however, this is the second-lowest result in the series, second only to the same month last year. A change in the survey’s methodology prevents comparison with years prior to 2020.

Year to date

From January through August, the study reports a 25.2 percent decline in the year-to-date total of formal job openings:

•    1,134,033 (first eight months of 2026);
•    1,516,881 (first eight months of 2025).

The data include adjustments made after the Ministry of Labor recorded statements submitted late by employers and revised data from previous months.

Sectors

When broken down by industry, all five sectors surveyed created formal jobs in August.

•    Services: +110,346 jobs;
•    Construction: +20,848;
•    Industry (manufacturing, mining, and other types): +16,613;
•    Retail: +16,565;
•    Agriculture and livestock: +1,452.

August is traditionally a slow month for agriculture and livestock due to the start of the planting season. However, it marks the peak of industrial activity, as factories begin production for the Christmas season.

Highlights

In the services sector, job creation was driven by the education segment, which added 25,416 formal jobs. The human health and social services category added 19,142 jobs. The transportation, warehousing, and mail sector created 16,819 jobs.

In construction, the standout was the specialized construction services segment, which created 8,415 formal jobs. Infrastructure projects came in second, with 7,396 jobs.

In manufacturing, the largest source of jobs was food product manufacturing, with 10,171 openings, followed by the manufacture of motor vehicles, trailers, and vehicle bodies (+3,311) and the manufacture of coke, petroleum products, and biofuels (+2,845).

Regions and States

All five Brazilian regions reported an increase in formal job openings in August.

•    Southeast: +73,167 jobs;
•    Northeast: +59,356;
•    North: +13,603;
•    South: +10,850;
•    Central-West: +8,699.

When broken down by state, 24 recorded a net increase, while three laid off more workers than they hired. The top performers in job creation were São Paulo (+42,533), Rio de Janeiro (+20,886), and Pernambuco (+13,428).

The states that lost formal jobs in August were Rio Grande do Sul (-1,611), Rondônia (-923), and Espírito Santo (-287).

According to the figures, in Espírito Santo, the layoffs stem from the end of the coffee harvest. In Rondônia, they are linked to the food industry. In Rio Grande do Sul, they were concentrated in the tobacco industry and the retail sector.

Average starting salary

The average real starting salary in August totaled BRL 2,410.74. This represents:

•    a decrease of BRL 0.74 (-0.03%) compared to July (R$ 2,411.48);
•    an increase of BRL 24.31 (+1.02%) compared to August 2025 (R$ 2,386.43).

Formal employment

With the creation of formal jobs, the number of workers with formal employment in the private sector stood at 48,244,696 at the end of August, up one percent from July and 1.02% from the same month last year.