Contributing to employment is Chinese company Build Your Dreams’ factory, which will serve as the base for future expansion into the Latin American electric vehicle market. The factory is in Camacari, about 30 miles from Salvador. File Photo by Americo Roberto/EPA
Jan. 2 (UPI) — Brazil ended 2025 with one of the lowest unemployment rates since official records began more than a decade ago.
According to the Brazilian Institute of Geography and Statistics, or IBGE, the unemployment rate stood at 5.2% in the rolling quarter from September to November 2025. That was the lowest level since 2012, when the current comparable schedule began.
Latin America’s largest economy now has 5.6 million people unemployed, down 7.2% from three months earlier and 14.9% from a year ago. Nearly 1 million Brazilians found jobs in 2025, according to official figures.
The data also show a sharp decline from the previous quarter, when unemployment was 5.6%, and from the same period in 2024, when it reached 6.1%, underscoring a steady downward trend throughout the year.
Employment reached a record more than 103 million people, while the employment rate among the working-age population rose to about 59%, another high in the statistical series.
Job growth across several sectors, particularly services, public administration and public safety, helped drive the improvement in the labor market.
The institute also reported a drop in the labor underutilization rate, which includes workers seeking more hours or better use of their skills. That indicator fell to its lowest level in recent years, suggesting an improvement in overall job quality.
Brazilian media highlighted the figures as a sign of economic recovery and labor market strength in the South American country.
President Luiz Inácio Lula da Silva welcomed the data on social media, calling it “a record in the historical series” and a reason for optimism heading into 2026.
“While 2025 is not over yet, we keep breaking records. Lowest unemployment in the historical series and rising income for the population,” Lula wrote recently on X.
The figures have also fueled debate over the composition of new jobs and the persistence of informal employment, an issue that has accompanied recent labor market gains.
The 5.2% unemployment rate marks not only a statistical milestone but also reflects a sustained recovery in Brazil’s labor market after years of economic volatility and the effects of the COVID-19 pandemic.
Local analysts say that if the trend continues, it could support domestic consumption and boost business confidence in 2026.
The labor data also carry political weight as Brazil approaches October presidential elections, in which Lula is seeking re-election.