Brasilia, Sept. 16, 2025 (Lusa) - The unemployment rate in Brazil fell to 5.6% in the quarter ending in July, which represents the lowest level since 2012, according to data released by the Brazilian Institute of Geography and Statistics (IBGE) on Tuesday.

The number of workers in Brazil reached a record 102.4 million people, up 2.4% year-on-year, while the number of unemployed stood at 6.118 million people, the lowest figure since the last quarter of 2013 (6.1 million).

The quarter was also marked by a record number of workers with a formal contract, 39.1 million.

Employment is growing mainly thanks to hiring in the private sector and public administration, which increased by 3.5% over the last twelve months, as well as the 4.2% rise in self-employed workers, according to the data released by the Institute.

An IBGE analyst, William Kratochwill, said that ‘the figures demonstrate the good momentum of the labour market’ in Brazil, despite the fact that the economy is showing signs of slowing down.

The Brazilian economy, the largest in Latin America, grew by 3.4% in 2024 and the government expects this year's expansion to fall back to around 2.3%. The main factor contributing to the slowdown is the high level of interest rates, which the Central Bank is keeping at 15% to try to moderate inflation, which is at 5.13% compared to the previous year.

LYSF/ADB // ADB.

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