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.

Brazil’s unemployment rate for the quarter ending in August stood at 5.3 percent, the lowest ever recorded for that period since 2012, when the statistics bureau IBGE began its time series. In addition, the agency reported record highs in the number of employed workers, formal employment, total payroll, and social security contributions.

The unemployment rate for the three-month period through August was down from the rolling three-month average through May (5.6%) and from the same period in 2025 (5.6%). According to the Secretariat of Economic Policy of the Ministry of Finance, the result was in line with market analysts’ expectations.

Notícias relacionadas:

• Unemployment drops to 5.3%, lowest for the quarter ending in July.
• Second quarter has 5.4% unemployment, lowest ever for the period.
• Brazil’s unemployment in quarter ending in May drops to record 5.6%.

The data are part of the Continuous PNAD (National Household Sample Survey), released Tuesday (Sep. 29).

The survey shows that in the quarter ending in August, the employed population reached 103.5 million people – the highest figure ever recorded. This figure represents a 0.8 percent increase compared to the quarter ending in May – that is, an additional 774,000 workers.

The survey also reveals that the economic sectors driving the rise in employment were general manufacturing (a two percent increase, 265,000 more people) and construction (4.1 percent, 306,000 more people).

Formal employment at an all-time high

The number of private-sector employees with formal employment reached 39.5 million, also a record high.

The unemployed population stood at 5.8 million at the end of the period, a 4.6 percent decline (down 281,000) compared to the March–May quarter.

The discouraged labor force – comprising those who do not even look for work because they believe they will not find any – totaled 2.4 million as of August – stable compared to the previous quarter and 11.9 percent lower (317,000 fewer) than the same period in 2025.

Informality – the proportion of informal workers in the employed population – stood at 37.5 percent, representing 38.8 million people. In the previous quarter, it stood at 37.3 percent.

The survey classifies as informal workers those without a formal employment contract, as well as self-employed individuals and employers without a corporate taxpayer ID. These individuals are not guaranteed benefits such as unemployment insurance, paid vacation, and a Christmas bonus.

Record payroll

The average monthly income per worker was BRL 3,777. In the quarter ending in May, it was BRL 3,752. The highest figure on record was BRL 3,783, in the quarter ending in February 2026.

The total payroll – the sum of all workers’ wages, which is ultimately used for consumption, debt repayment, investments, and savings – reached BRL 385.6 billion, the highest on record, with a 1.4 percent growth in the quarter (up BRL 5.2 billion) and a 4.8 percent growth (up BRL 17.5 billion) year-over-year.

Record-high number of social security contributors

According to the study, Brazil has reached the highest number ever recorded of workers contributing to social security institutions – 68.5 million people. This means that out of every 100 workers, 66.2 contribute.

By contributing to social security institutions, workers are entitled to benefits such as retirement, disability, and survivor’s pensions.

The agency defines contributors as employees, employers, domestic workers, and self-employed individuals who have contributed to official federal, state, or municipal social security institutions.

Labor market overview

The 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.

According to the research 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 states and the Federal District.

The lowest unemployment rate ever recorded by the PNAD was 5.1 percent, in the last quarter of 2025. The highest rate ever recorded was 14.9 percent, reached in two periods – the rolling quarters ending in September 2020 and March 2021, both during the COVID-19 pandemic.