The result stems from 2,239,895 hires with all labor law guarantees and 2,092,537 layoffs, according to data released by Brazil’s Ministry of Labor and Employment.
The positive balance in August surpassed that recorded in July (134,251), but fell by 38.3% compared to the same month in 2024, when 239,069 new formal jobs were created.
Between January and August, the country generated 1,501,930 formal jobs, 13% less than in the same period in 2024.
The numbers indicate a slowdown in Brazil’s formal job market as a consequence of the economic slowdown, partly caused by the high interest rate, currently at 15% per annum.
The Minister of Labor, Luiz Marinho, emphasized, when presenting the results, that Brazil continues on the path of job creation, albeit at a more moderate pace.
The minister highlighted the importance of the Central Bank reducing rates in the short term to give new impetus to the Brazilian economy and further enhance job creation.
After growing 3.4% in 2024, all forecasts indicate that the Brazilian economy is in a phase of deceleration, which should limit the expansion of the GDP (Gross Domestic Product) of the Portuguese-speaking country to between 2% and 2.5% this year.
