Brazil's unemployment rate fell to 5.4% in the rolling quarter ending in June 2026, down from 6.1% in the previous rolling quarter, matching market expectations and marking the lowest reading since January. The number of unemployed dropped 10.9% from the previous quarter to 5.9 million. Employment gains were concentrated in transportation, storage and postal services (3.9%) and public administration, education and health services (2.6%). The broader labor underutilization rate declined to 12.9% from 14.3%, while the number of underemployed workers fell 6.6% to 4.1 million. Total employment rose 1.1% to a record 103.1 million people, lifting the employment rate to 58.8% from 58.2%. Meanwhile, average real monthly earnings were unchanged from the previous quarter at BRL 3,738.