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With The Lowest Unemployment Rate in Brazil for Four Consecutive Quarters, Santa Catarina Closed 2025 at 2.2% in The 4th Quarter, According to The PNAD Continuous of IBGE, and Maintained Informality at 25.7%, Well Below The National Average of 37.6% The Data Also Show a Decrease in Unemployed and Higher Average Income
Santa Catarina ended 2025 with the lowest unemployment rate in Brazil for four consecutive quarters, according to the PNAD Continuous of IBGE published on Friday (20). In the latest report, the 4th quarter, the unemployment rate was 2.2%, almost half of the national average of 5.1%.
This figure draws attention for two reasons that go hand in hand. It suggests a very heated job market and, at the same time, puts pressure on wages, companies, and public policies because such a low rate changes the competition for labor, reduces room for error, and exposes challenges that are not only reflected in the final number.
Four Consecutive Quarters at The Top and What 2.2% Really Means
The lowest unemployment rate in Brazil in Santa Catarina was not an isolated peak: the state led the ranking in all four quarters of 2025.
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In the 4th quarter, the unemployment rate of 2.2% placed Santa Catarina ahead of the country, with Espírito Santo, Mato Grosso, and Mato Grosso do Sul following at 2.4%, also according to the PNAD Continuous of IBGE.
There is an important nuance in the annual result that often confuses those who look only at the headline.
At the end of 2025, Santa Catarina concluded with 2.3%, only behind Mato Grosso, which recorded 2.2%, because this calculation considers estimates based on July 1 as the reference date of IBGE.
In other words, the state dominated the quarters, but the entire year has a different standard.
Informality at 25.7% and The Difference That Changes Job Quality
Informality is the other figure that explains why Santa Catarina has been treated as a statistical exception.
The state registers 25.7% informality, well below the national average of 37.6%, and has maintained the lowest informality rate in the country since 2018, with 31 consecutive quarters, according to the same PNAD Continuous of IBGE.
In practice, lower informality does not mean that all jobs are stable or well-paid, but indicates that the proportion of workers outside formal ties is lower than in the rest of the country.
This changes the tax base, social protection, and income predictability for those who are employed and for those trying to re-enter the workforce in Santa Catarina.
Fewer Unemployed, More Employed, and The Movement Reading in 2025
The lowest unemployment rate in Brazil in Santa Catarina also appears when observing the number of people without work.
In the 4th quarter of 2025, the unemployed population fell by 19% compared to the same period in 2024, dropping from 122,000 to 99,000 people, while the employed population grew by 1.5% in the same period.
This type of combination is usually at the heart of the explanation for “why” unemployment is low.
Fewer unemployed people and more employed people mean that the market absorbed part of those who were outside and maintained enough job openings to keep the rate compressed.
The collateral effect is the competition for hiring, which can raise costs and accelerate turnover.
Average Income, R$ 4,131, and The Weight of Salary in The Machinery
If unemployment falls and informality decreases, the next question becomes money in the pocket.
In the 4th quarter of 2025, the usual average income in Santa Catarina was R$ 4,131, 17.8% above the national average of R$ 3,508, with a real increase of 7.8% compared to the same period in 2024, outperforming Brazil, the South Region, and the Southeast, according to the PNAD Continuous of IBGE.
The increase occurred in all sectors, but one was highlighted: Transportation, storage, and postal services grew by 12.5% and reached an average of R$ 4,223.
As a result, Santa Catarina now has the second highest average income in the country in this segment, behind only the Federal District, having been in fifth place in the 4th quarter of 2024.
It’s the kind of leap that reveals a shift in weight within the market itself.
Underutilization at 4.4% and Discouragement at 0.3% When The Problem Becomes Another
A market can have low unemployment and still hide underemployment, discouragement, and people working less than they would like.
In Santa Catarina, the lowest rate of underutilization of the workforce in the country was 4.4%, well below the national average of 13.9%, an indicator that includes unemployed, underemployed due to insufficient hours, and available people who have given up looking for work.
The state also recorded the lowest percentage of discouraged individuals in Brazil, at 0.3%, compared to 2.4% at the national average.
When discouragement is low, the message is harsh yet positive at the same time: there are fewer people giving up due to lack of hope, but there is also less “wiggle room” for companies that need to fill vacancies quickly.
Sectors on The Rise and The Signal That The Economy Pulled The Market
The data cites growth in specific activities in the 4th quarter of 2025, compared to the same period in 2024.
The highlight was Agriculture, livestock, forestry production, fishing, and aquaculture, with an increase of 19.2%, followed by Information, communication, and financial, real estate, professional, and administrative activities, with a growth of 7.5%.
This analysis helps understand why Santa Catarina maintains the lowest unemployment rate in Brazil for so long, without relying on a single engine.
There is expansion in traditional sectors and in more complex services, while average income is also rising.
When several sectors pull together, the rate becomes more resilient to a sudden glitch, although this does not eliminate risks and internal inequalities.
Santa Catarina ended 2025 with the lowest unemployment rate in Brazil in the quarterly analysis, recording 2.2% in the 4th quarter and exhibiting informality of 25.7%, according to the PNAD Continuous of IBGE.
Along with this, there were decreases in the unemployed population, increases in the employed population, average income of R$ 4,131, and indicators of underutilization and discouragement among the lowest in the country.
Now the more realistic discussion is not just about celebrating the number, but about understanding the cost of labor scarcity. In your city or your sector in Santa Catarina, is it harder to hire, easier to get a job, or has the problem become salary and qualification to fill the vacancies that already exist?
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