Brazil Records Lowest First-Quarter Unemployment at 6.1% Under Lula Government

Brasilia: The administration of President Luiz Inacio Lula da Silva on Thursday welcomed fresh labour market figures showing Brazil recorded its lowest unemployment rate ever for the first quarter, according to Brazil 247.

Data released by the Brazilian Institute of Geography and Statistics (IBGE) showed the unemployment rate was 6.1 per cent in the quarter ending in March, based on findings from the Continuous PNAD survey, as reported by Brasil 247.

This represented a drop of 0.9 percentage points from the same period in 2025, when unemployment stood at 7 per cent, which had previously been the lowest first-quarter rate on record. The figures suggest the labour market has continued to recover under the current government.

The data also showed growing income levels. The total real wage bill climbed to BRL 374.8 billion, establishing a new record for the period. Compared to a year earlier, this was a 7.1 per cent increase, adding BRL 24.8 billion to the economy. Average real income also reached a record BRL 3,722.

Adjusted for inflation, income rose both quarterly and annually, increasing 1.6 per cent over the quarter and 5.5 per cent compared to the previous year.

Informal employment fell to 37.3 per cent of the employed population, equivalent to 38.1 million workers, down from 37.6 per cent in the prior quarter and 38 per cent a year earlier.

Meanwhile, formal employment grew, with the number of private-sector employees holding formal contracts (excluding domestic workers) rising 1.3 per cent year-on-year, adding 504,000 jobs for a total of 39.2 million. The number of workers without formal contracts declined by 2.1 per cent during the quarter, a reduction of 285,000 people, bringing the total to 13.3 million, according to Brazil 247.

Job growth was also recorded across major sectors. Compared to the same quarter last year, employment in information, communication, financial, real estate, professional, and administrative activities increased by 3.2 per cent, adding 406,000 workers. Public administration posted a 4.8 per cent increase, with 860,000 additional workers. Domestic services were the only sector to show a decline, dropping 3.6 per cent or 202,000 workers. The number of self-employed workers remained stable during the quarter at approximately 26 million, but increased 2.4 per cent year-on-year, representing 607,000 more people, Brazil 247 reported.

(ANI)