Brazil generated 58.5 thousand formal jobs in July this year, according to data from the Ministry of Labor and Employment. The number represents a 56.3% decline compared to the same month in 2025, falling well below the market median, which was 114 thousand jobs, and even below the floor of projections, which estimated 90.5 thousand formal positions.
The July result was the worst for similar months since 2020, when the current historical series of the General Registry of Employed and Unemployed (Caged) began. Year-to-date through July, 972.2 thousand formal jobs were created in the country, representing a 21% decline compared to the same period in 2025, when 1.22 million formal jobs were opened.
The cumulative number is also the lowest job creation result since 2020. Economist Rodolfo Margato, from XP, commented that the slowdown in demand and labor supply restrictions in some sectors should result in more moderate employment growth in the coming months.




