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Brazil Hits Historic Low Unemployment Rate at 6.1% Under Lula Government

Brazil's first-quarter unemployment rate has dropped to a record low of 6.1% under President Luiz Inacio Lula da Silva's administration. The data shows a 0.9 percentage point decline from the same period last year, with the total real wage bill reaching a record BRL 374.8 billion. Formal employment grew by 504,000 jobs, while informal employment fell to 37.3% of the workforce. Job growth was seen across major sectors, with only domestic services showing a decline.

Key Points: Brazil Unemployment Hits Record Low 6.1% Under Lula

  • Unemployment falls to record low 6.1% for first quarter
  • Real wage bill reaches record BRL 374.8 billion
  • Formal employment rises by 504,000 jobs
  • Informal employment drops to 37.3% of workforce
2 min read

Brazil posts record-low first-quarter unemployment rate at 6.1% under Lula government

Brazil's first-quarter unemployment rate drops to 6.1%, a record low. Real wages hit BRL 374.8 billion, and formal employment rises by 504,000 jobs.

"This represented a drop of 0.9 percentage points from the same period in 2025, when unemployment stood at 7 per cent - Brazil 247"

Brasilia, May 2

The administration of President Luiz Inacio Lula da Silva on Thursday welcomed fresh labour market figures showing Brazil recorded its lowest unemployment rate ever for the first quarter, according to Brazil 247.

Data released by the Brazilian Institute of Geography and Statistics (IBGE) showed the unemployment rate was 6.1 per cent in the quarter ending in March, based on findings from the Continuous PNAD survey, as reported by Brasil 247.

This represented a drop of 0.9 percentage points from the same period in 2025, when unemployment stood at 7 per cent, which had previously been the lowest first-quarter rate on record. The figures suggest the labour market has continued to recover under the current government.

The data also showed growing income levels. The total real wage bill climbed to BRL 374.8 billion, establishing a new record for the period. Compared to a year earlier, this was a 7.1 per cent increase, adding BRL 24.8 billion to the economy. Average real income also reached a record BRL 3,722.

Adjusted for inflation, income rose both quarterly and annually, increasing 1.6 per cent over the quarter and 5.5 per cent compared to the previous year.

Informal employment fell to 37.3 per cent of the employed population, equivalent to 38.1 million workers, down from 37.6 per cent in the prior quarter and 38 per cent a year earlier. Meanwhile, formal employment grew, with the number of private-sector employees holding formal contracts (excluding domestic workers) rising 1.3 per cent year-on-year, adding 504,000 jobs for a total of 39.2 million. The number of workers without formal contracts declined by 2.1 per cent during the quarter, a reduction of 285,000 people, bringing the total to 13.3 million, according to Brazil 247.

Job growth was also recorded across major sectors. Compared to the same quarter last year, employment in information, communication, financial, real estate, professional, and administrative activities increased by 3.2 per cent, adding 406,000 workers. Public administration posted a 4.8 per cent increase, with 860,000 additional workers. Domestic services were the only sector to show a decline, dropping 3.6 per cent or 202,000 workers. The number of self-employed workers remained stable during the quarter at approximately 26 million, but increased 2.4 per cent year-on-year, representing 607,000 more people, Brazil 247 reported.

- ANI

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Reader Comments

P
Priya S
Meanwhile in India, we're still struggling to create enough formal jobs for our youth. Brazil showing 6.1% unemployment is remarkable - that's almost like full employment by our standards. The wage growth adjusted for inflation is particularly impressive. Hope our policymakers are watching!
J
James A
Good to see a developing economy prioritizing workers. The 504,000 new formal jobs in one year is significant. But I wonder - how much of this is real economic recovery vs statistical adjustments? Still, any drop in unemployment is welcome news. India needs similar targeted policies for job creation.
V
Vikram M
As an economics student, this data is fascinating! The real wage bill growing 7.1% while inflation is controlled shows genuine improvement. Brazil's experience proves that left-leaning governments can deliver economic growth. India could learn from their focus on formalizing the workforce.
S
Sarah B
I'm cautiously optimistic about these numbers. The decline in domestic services (-3.6%) is concerning though - those are often women and vulnerable workers. But overall, 6.1% unemployment with rising wages is solid. Wish our Indian metros could achieve similar figures!
N
Nikhil C
Bhai, 6.1% unemployment is like a dream for India! Even during our best quarters we struggle to get below 7%. The key takeaway is the formal job creation - 504,000 new formal contracts. That's the gold standard. Our gig economy boom isn't creating the same quality of jobs.

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