Brazil records lowest labor subutilization and unemployment rates

The Brazilian Institute of Geography and Statistics (IBGE) released the latest PNAD Continuous data on 26 June 2026. The survey shows the subutilization rate of the labour force fell to 13.3 % in the quarter ended May 2026, the lowest level recorded since the series began in 2012 and below the previous low of 13.4 % in the last quarter of 2025. The number of people classified as sub‑utilised dropped to 15.1 million, a 5.7 % decline from the previous quarter and a reduction of 1.9 million over the past year.

At the same time, the unemployment rate fell to 5.6 % – also the lowest for the May period in the series – with 6.1 million unemployed, down 9.3 % from a year earlier. Employment rose to 102.7 million, creating 558 000 new jobs in the quarter. Informality stood at 37.3 % of workers and the average real monthly wage was R$ 3 726.

Analyst William Kratochwill notes the data signal a structurally heated labour market and a shrinking “labour cushion”, which could push wages up and improve job conditions as firms compete for a tighter supply of workers. The previous peak subutilisation was 30.7 % in August 2020, illustrating the depth of the current recovery.