High Interest Rates Slow Brazil's Formal Job Market in September
The country added 121,300 formal jobs, falling short of financial market expectations.
Brazil's formal labor market slowed down in the ninth month of 2026. The General Register of Employed and Unemployed Persons recorded the opening of 121,305 formal jobs in September.
The result fell short of analyst projections, which expected between 95,600 and 195,000 new hires, with a median of 160,200. This is the lowest balance for September since the current historical series began in 2020.
The services sector accounted for the majority of new positions, while the retail sector faces difficulties. Higher consumer financing costs due to elevated interest rates directly limit hiring capacity in durable goods segments.
The agricultural sector saw net job losses, while general industry and other sectors continued to create positions. The year-to-date total of formal jobs is down 27.9% compared to the same period last year.
Economists point out that the 13.75% Selic rate exerts negative pressure on domestic economic activity. The trend for the coming months suggests a challenging scenario for the expansion of formal employment.
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