Brazil labor market creates 165,827 formal jobs in August 2026

Brazil's formal labor market saw the creation of 165,827 jobs in August 2026, according to data from the Ministry of Labor and Employment (MTE) via Caged. This represents a significant increase of 183.1% compared to the 58,568 jobs created in July. While the monthly growth is strong, the cumulative total for 2026 through August stands at 1,134,033 new jobs, a 25.2% decrease compared to the same period in 2025.

Regional highlights include Bahia, which recorded 11,647 new jobs in August, marking eight consecutive months of positive growth. In the construction sector, Pernambuco led the country with an 18.04% increase in formal employment over the last 12 months.

A study by the Fundação Getulio Vargas (FGV) provides further insight into the workforce, revealing that beneficiaries of the Bolsa Família program accounted for 85.2% of the net formal jobs created in Brazil between January 2023 and July 2026. This group generated a positive balance of approximately 4.6 million jobs, countering criticisms regarding the program's impact on labor participation.