Brazil's Unemployment Rate Hits Historic Low for Second Quarter

Brazil's national unemployment rate fell to 5.4 percent in the second quarter of 2026, marking the lowest level for this period since the Pnad Contínua series began in 2012. According to data released by the IBGE, the national rate decreased from 6.1 percent in the first quarter. The unemployment rate saw statistically significant declines in 13 of the 27 federation units, while the remaining 14 units remained stable within the research margin of error.

Regional disparities remain evident. Santa Catarina recorded the lowest unemployment rate at 2.1 percent, followed by Mato Grosso at 2.2 percent and Espírito Santo at 2.3 percent. Conversely, the highest rates were found in Amapá at 9.8 percent, Bahia at 9.1 percent, Pernambuco at 8.3 percent, and Piauí at 8.3 percent. By region, the South, Center-West, and Southeast all remained below the national average, while the Northeast and North recorded the highest levels of unemployment.

Analysts from the IBGE suggest that differences in industrialization, schooling, and economic activity levels explain these variations. Specifically, the Center-West is narrowing the gap with the South, a trend attributed in part to the evolution of the agribusiness sector. While mechanization in agribusiness may reduce the need for direct labor, the resulting increase in income can stimulate hiring in other markets.

Despite the drop in unemployment, some economists suggest the labor market is showing signs of deceleration. Average monthly income remained largely stable at 3,738 Brazilian reais. The only significant change in income was a 9 percent increase in Acre to 3,149 reais and a 9.5 percent decrease in the Distrito Federal to 6,171 reais.