Brazil’s Unemployment Falls to 5.6% in 2025, With IBGE Highlighting Uneven Gains

Overview

• IBGE reports the lowest annual jobless rate in its series at 5.6% for 2025, with unemployment falling year over year in 22 of 27 states and 20 jurisdictions hitting series lows.
• State gaps persist: Mato Grosso posted the lowest rate at 2.2% and Piauí the highest at 9.3%, with Bahia and Pernambuco at 8.7% and Santa Catarina at 2.3%.
• Employment reached a record near 103 million and average real monthly earnings rose to R$3,560 in 2025, reinforcing a tight labor market.
• Quality challenges endure, with informality at 38.1% nationally and subutilization at 14.5%, both markedly higher in the North and Northeast, IBGE analysts note.
• Momentum shows signs of cooling: most Q4 state declines were statistically marginal, even as youth unemployment fell to a series‑low 11.4% and long‑term joblessness dropped to 1.074 million; a separate FGV Ibre study found 1.279 million formal jobs created in 2025, fewer than in 2024, with industry, construction and commerce cutting 34,297 higher‑education posts.