The unemployment rate was 5.6% in the quarter ended August. The index repeats the quarter ended in July and remains in the lowest level since 2012, the beginning of the time series of the Continuous National Household Sample Survey (PNAD), released today (30) by the IBGE. Among the comparable quarters, unemployment was 6.2% in the quarter ended in May and 6.6% in the same period last year.

With the result, 6.1 million people are unemployed in Brazil in the quarter until August, the smallest contingent of the time series, which fell 9.0% (less 605 thousand persons) compared to the quarter until May. The drop was 14.6% (less 1.0 million persons) in relation to the same period in 2024.

According to the analyst of the survey, William Kratochwill, the drop in unemployment passes through the public education sector. "Pre-school and primary education make hiring throughout the first semester. They are workers without a formal contract, with temporary work contracts," explains him. This group is part of workers without a formal contract in the public sector, which grew 5.5% over the quarter until May and remained stable (0.8%) compared to the quarter until August 2024.

According to the activity, Public administration, defense, social security, education, human health and social services was the only one to grow in terms of employed persons in both comparisons: 1.7%, or more 323 thousand people against the quarter ended in May and 4.2% or more 760 thousand people compared to the same period as 2024. On the other hand, Domestic services was the only one to retreat in both comparisons: 3.0% or less 174 thousand people compared to the previous quarter and 3.2% or less 187 thousand people over the quarter ended in August 2024.

“Many times, at the most tough times in the economy, people migrate to domestic services. What we may be witnessing is the opposite movement, where workers identify better job opportunities, with better conditions and earnings, and leave domestic services,” said Kratochwill.

Compared to the previous quarter (March-Abril-May), Agriculture, livestock, forestry, fishing and aquaculture (4.4%, or more 333 thousand people) rose as well. “In agriculture, the rise is explained by the coffee harvest in the Northeast and Southeast, regions that contributed the most in employment, especially Bahia,” says Kratochwill. Compared to the same period of 2024, the other activity that grew was Transportation, storage and mailing (5.5%, or more 311 thousand people). The other groups did not change significantly.

Underutilization rate remains at the lowest level since 2012

In the quarter ended in August, the composite underutilization rate (14.1%) repeated the lowest rate in the time series, retreating 0.9 percentage points (p.p.) compared to the previous quarter and 1.9 p.p. against the same quarter of 2024. The underutilized population reduced to 16.0 million people, falling 6.2% (less 1.1 million people) in the quarterly comparison and 11.8% (less 2.1 million) in the annual one. Underutilization in the workforce is formed by unemployed persons, time-related unemployed persons, and those who did not seek work, but were available to work, or who sought work, but were not available for the vacancy.

The time-related unemployed population (4.6 million) remained stable in the quarter and fell 7.8% (less 386 thousand people) in the year. On the other hand, the discouraged population (2.7 million) fell 6.7% (less 191 thousand people) in the quarter and retreated 13.7% (less 423 thousand people) in the year. It was the smallest contingent since the quarter ended in January 2016. The percentage of discouraged persons (2.4%) dropped 0.2 p.p. in the quarter and retreated 0.4 p.p. in the year. Discouraged persons are those who would like to work, but did not seek work because they would not find themselves because they find themselves too old, too young, not qualified or because there was no place in the region where they lived.

"Time-related unemployed persons often accept to be in this position because they consider it to be a trampoline for full-time work," says Kratochwill. Regarding the discouraged persons, the improvement in the labor market encourages this group to return to look for a job and enter the workforce. "The drop in the number of discouraged persons indicates that the labor market is managing to quickly absorb this contingent, as the unemployment rate continues to fall," says the analyst of the Continuous PNAD.

The contingent of employed people reached 102.4 million in the quarter until August, up 0.5% (more 555 thousand people) in relation to the quarter until May and 1.8% (more 1.9 million people) compared to the same quarter of 2024. With this result, the employment- population ratio, which measures the percentage of employed persons in the population at working age, was 58.1%, and remained at the highest level of the time series, with an increase of 0.2 p.p. compared to the quarter until May and 0.6 p.p. compared to the same quarter of 2024.

Number of employees with a formal contract in the private sector breaks record

The increase in employment was leveraged by the record in the number of employees in the private sector (52.6 million people), a group that was stable against the quarter until May and grew 1.5% (more 768 thousand people) over the quarter until August 2024. The contingent of employees with a formal contract in the private sector (excluding domestic workers) was also a record (39.1 million), with stability in the quarter and up 3.3% (more 1.2 million people) in the year. In contrast, the number of employees without a formal contract in the private sector (13.5 million) remained stable in the quarter and retreated 3.3% (less 464 thousand people) in the year.

“The heated labor market provides a change in the hiring profile, because with less relative availability of the workforce, hiring only happens with more benefits for workers, such as the formal contract for example,” explains Kratochwill.

The number of employees in the public sector (12.9 million) remained stable in the quarter and grew 2.7% (more 340 thousand) in the year. Among their self-employed workers (25.9 million), both comparisons grew: 1.2% (more 300 thousand people) in the quarter and 4.3% (more 1.1 million) in the year.

Estimated at 5.6 million people, the category of domestic workers had a -3.3% reduction compared with the quarter from March to May 2025. Compared with the quarter from June to August 2024, it reduced by -197 thousand people.

Self-employed workers without CNPJ is the only one that grew among informal workers

The informality rate was 38.0% of the employed population (or 38.9 million informal workers) against 37.8% (or 38.6 million) in the previous quarter and 38.9% (or 39.1 million) in the quarter ended in August 2024.

The increase in informality was observed in self-employed workers without CNPJ, which reached 19.1 million people, up 1.9% over the quarter until May and 2.9% compared to the same period as 2024.

"This is a sign that people are betting on autonomous work, they are workers with less education, usually in trade and food activities. A portion of discouraged persons may have migrated in part to informality," says Kratochwill.

Real average earnings are R$3,488

The usual real average earnings reached R$3,488 in the quarter until August, with stability compared to the quarter until May and up 3.3% over the same quarter of 2024. As a result, the usual real average wage bill reached R$352.6 billion reais, up 1.4% compared with the quarter until May and 5.4% compared to the same quarter of 2024.

According to employment type, earnings remained stable in all categories compared to the quarter ended in May, with the exception of the military statutory civil servants, who rose 3.0%. Compared to the same quarter of 2024, those employed with a formal contract (2.0%, or more R$64), those without a formal contract (5.0%, or more R$118), domestic workers (5.3%, or more R$68) and those employed in the public sector (including statutory and military servants) (4.1%, or more R$206) and self-employed workers (4.6% or more R$127) rose.

Among the activities, the increase in earnings compared to the quarter until May was leveraged by Public administration, defense, social security, education, human health and social services (1.9%, or more R$89). The other groups showed no significant change. Compared to the quarter ended in August 2024, Agriculture, livestock, forestry, fishing and aquaculture (6.6%, or more R$136), Construction (5.1%, or more R$132), Public Administration, defense, social security, education, human health and social services (3.7%, or more R$171) and Domestic services (5.3%, or more R$68) increased.

More about the survey

The Continuous PNAD is the main instrument to monitor workforce in Brazil. Its sample includes 211 thousand households, spread throughout 26 states and the Federal District, which are visited every quarter. Nearly two thousand interviewers work in the survey, integrated with more than 500 IBGE branches in the entire country.

The identity of the interviewers can be confirmed at the Answering the IBGE website or through the Call Center (0800 7218181), and their ID numbers can be requested by the informants.

The next release, related to the quarter ended in September, will be on October 31.