started · updated
Brazil formal job creation hits lowest July level since 2020
Brazil recorded the creation of 58,568 formal jobs in July 2026, according to data from the Ministry of Labor and Employment's Caged system. This represents a 56.3% decrease compared to July 2025 and is the lowest July result since the new methodology was implemented in 2020. The slowdown is attributed to high interest rates and economic deceleration.
Sectoral performance showed that services led job creation with 24,098 positions, followed by construction, agriculture, and industry. Conversely, the commerce sector was the only major industry to see a net loss of jobs. From January to July 2026, total formal job creation accumulated to 972,203, a 20.9% reduction compared to the same period in 2025.
Regional highlights include Pernambuco, which added 1,883 jobs in July and has accumulated over 23,000 jobs this year, and Paraíba, which saw its fifth consecutive month of positive growth with 2,307 new positions. In the first half of 2026, young workers aged 18 to 24 accounted for 33.17% of all temporary hires in the country, suggesting that temporary work remains a significant entry point for this demographic despite the broader market slowdown.
Entities
Brazil · Caged · Chico Macena · Danielle Jar Souto · Ministry of Labor and Employment · Paraíba · Pernambuco
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] The July job creation figure is the lowest for a July since 2019.
- [○ 1 SOURCE] Pernambuco accumulated 23,273 new formal jobs from January to July 2026. focope.com.br
- [● 2 SOURCES] Brazil's formal labor market added 58,568 jobs in July. edenevaldoalves.com.br
- [● 2 SOURCES] The services sector led job growth with 24,098 new positions. edenevaldoalves.com.br
- [● 2 SOURCES] The commerce sector was the only major group to record a negative balance in July. edenevaldoalves.com.br
- [● 2 SOURCES] Brazil added 972,203 formal jobs between January and July 2026. edenevaldoalves.com.br