Brazil retail sector faces job losses amid high interest rates

retail sector job losses interest rates e-commerce growth Caged data

Brazil's retail sector has experienced a continuous loss of formal jobs, according to data from the Novo Caged. In July 2026, the retail sector specifically closed 2,056 positions, contributing to a cumulative loss of 7,896 jobs in the first seven months of the year.

Francisco Macena, Executive Secretary of the Ministry of Labor and Employment, attributed this decline to high interest rates and a structural shift toward e-commerce. Macena noted that the Selic rate, at 14% per year, inhibits consumer credit and reduces corporate investment in new stores and expansions. He also highlighted that the Ministry is seeing increased demand for employment intermediation within the growing online retail sector.

While acknowledging the challenges faced by major retailers like Casas Bahia and Lojas Americanas, Macena characterized the situation as a “momentary repositioning” rather than a structural crisis. He expressed caution regarding the remainder of the year, noting economic deceleration and the traditionally difficult job generation months of November and December.