Brazil's Lula administration faces political discontent amid economic records

The third administration of President Lula in Brazil faces a complex landscape of declining political popularity and significant economic milestones. Reports indicate growing widespread discontent among various social groups, including women and voters in the Northeast, which may complicate the government's position heading into the 2026 succession.

In contrast to political dissatisfaction, several economic and social indicators have reached record highs during this term. Data shows that the real average labor income reached R$ 3,804 in the quarter ending March 2026, and the unemployment rate fell to 5.1% at the end of 2025, the lowest in the series starting in 2012. Additionally, the total mass of earnings reached R$ 385.6 billion, a 21% increase over the previous peak.