Photo: screengrab from the official website of Brasil 247

By Brasil 247 - The government of President Luiz Inácio Lula da Silva on April 30 welcomed new labor market data showing the lowest unemployment rate on record for a first quarter in Brazil. According to the Brazilian Institute of Geography and Statistics (IBGE), the jobless rate stood at 6.1% in the quarter ending in March, based on data from the Continuous PNAD survey, as reported by Brasil 247.

The result marks a decline of 0.9 percentage points compared to the same period in 2025, when the rate was 7%, previously the lowest for a first quarter. The figures indicate a continued recovery in the labor market during the current administration.

The data also point to rising income levels. The total real wage bill reached R$ 374.8 billion, setting a new record for the period. On a yearly basis, this represents an increase of 7.1%, equivalent to an additional R$ 24.8 billion in the economy. The average real income also hit a record high of R$ 3,722.

Income growth was recorded both quarterly and annually, rising 1.6% over the quarter and 5.5% year-on-year, adjusted for inflation.

Informality in the labor market declined to 37.3% of the employed population, or 38.1 million workers, down from 37.6% in the previous quarter and 38% a year earlier. At the same time, formal employment expanded, with the number of private-sector workers holding formal contracts (excluding domestic workers) increasing by 1.3% over the year, adding 504,000 jobs for a total of 39.2 million.

The number of workers without formal contracts fell by 2.1% in the quarter, a reduction of 285,000 people, totaling 13.3 million.

Employment growth was also observed in key sectors. Compared to the same quarter last year, employment increased by 3.2% in information, communication, financial, real estate, professional, and administrative activities, adding 406,000 workers. Public administration saw a 4.8% rise, with an increase of 860,000 workers.

Domestic services was the only sector to register a decline, falling 3.6%, or 202,000 workers.

The number of self-employed workers remained stable in the quarter at around 26 million, but rose 2.4% year-on-year, representing an increase of 607,000 people.

(Reported by Brasil 247 on April 30, 2026)