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Public Sector Drives Brazil’s Formal Job Growth as RAIS Shows 1.09 Million New Hires

The Labour Ministry has suspended salary updates while it probes inconsistent pay reports and warns that seasonal and fixed‑term public contracts likely inflated the early‑year spike.

Overview

  • The Ministry of Labour published RAIS Mensalizada data on June 24 showing Brazil’s formal employment reached about 62.2 million vínculos with a 3.6% annual gain driven mainly by public hires.
  • Public‑sector vínculos rose by roughly 1.091 million year‑on‑year, outpacing private sector additions of about 1.041 million and bringing the stock of agents public to about 13.8 million.
  • The ministry reported that roughly 886–887 thousand of the new public hires were fixed‑term contracts, and officials said start‑of‑year seasonal recruiting — for example of teachers — likely amplified the surge.
  • RAIS Mensalizada counts federal, state and municipal public servants and temporary workers unlike CAGED, so its broader coverage helps explain the gap between public and private job tallies.
  • The ministry found inconsistencies in employer‑reported remuneration and will publish salary figures only through December 2025 while it validates data, a move that leaves recent wage trends provisional and could affect fiscal and policy analysis.