Brazil Loses Momentum and Formal Job Creation Plummets 32.2% in July 2025, the Worst Result Since the Pandemic

Written by Caio Aviz

Published on 28/08/2025 at 00:08

Carteira de Trabalho diante de gráfico em queda, representando a retração de 32,2% na criação de empregos formais em julho de 2025, segundo dados do Caged.

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Sharp Drop Exposes Weakness in the Labor Market

Brazil registered in July 2025 the creation of 129,775 formal jobs, according to the General Register of Employed and Unemployed (Caged).

The data was released by the Ministry of Labor and Employment on August 27, 2025. This result represents a decline of 32.2% compared to July 2024.

In July 2024, 191,373 formal positions had been created, marking the worst performance for the month since 2020, a period marked by the covid-19 pandemic.

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Deceleration Compared to June and Year-to-Date Still Positive

The July result also showed that there was a deceleration compared to June 2025, when the balance recorded 162,388 formal jobs.

In the accumulated year, between January and July, 1.348 million job positions were opened, representing growth of 2.86% compared to 2024.

Currently, Brazil has more than 48.5 million people formally employed in the public and private sectors. There was a positive variation of 0.26% compared to July 2024.

Average Salary Records Drop in July

According to the survey, the average admission salary was R$ 2,277.51 in July 2025, down R$ 5.64 compared to June.

The decline was 0.25%. Compared to June 2024, the real reduction was R$ 1.07, corresponding to a drop of 0.05%.

Although the number seems small, experts point out that the reduction in the average salary, albeit slight, reflects the fragility of the Brazilian labor market.

Balance by States Shows Regional Contrasts

According to Caged, 25 states recorded a positive balance of jobs in July 2025, with highlights for São Paulo, which added 42,798 jobs created (+0.29%).

Next, Mato Grosso recorded 9,540 positions (+0.97%) and Bahia added 9,436 new jobs (+0.43%).

In contrast, some states showed retraction. Espírito Santo lost 2,381 positions (-0.26%), while Tocantins closed with a negative balance of 61 jobs (-0.02%).

Acre also recorded poor performance, ending the month with only 112 jobs created (+0.10%).

Economic Sectors Maintain Positive Balance

Despite the overall drop, all five major sectors of the economy showed positive balance in July 2025, with a highlight on the services sector.

Services were responsible for 50,159 jobs created (+0.21%), followed by commerce, with 27,325 jobs (+0.26%), and industry, which added 24,426 positions (+0.27%).

The construction sector also showed good results, with 19,066 jobs (+0.63%), while agriculture added 8,795 jobs (+0.46%).

There was also a residual registration of four jobs in unidentified activities. The data confirms sectorial expansion but reveals significant deceleration in job creation.

Brazil Loses Momentum and Formal Job Creation Plummets 32.2% in July 2025, the Worst Result Since the Pandemic

Sharp Drop Exposes Weakness in the Labor Market

Deceleration Compared to June and Year-to-Date Still Positive

Average Salary Records Drop in July

Balance by States Shows Regional Contrasts

Economic Sectors Maintain Positive Balance

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Brazil Loses Momentum and Formal Job Creation Plummets 32.2% in July 2025, the Worst Result Since the Pandemic

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Deceleration Compared to June and Year-to-Date Still Positive

Average Salary Records Drop in July

Balance by States Shows Regional Contrasts

Economic Sectors Maintain Positive Balance

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