Brazil’s unemployment rate fell to 5.3% in the rolling quarter ended in July 2026, down from 5.8% in the previous quarter and matching market expectations. This was the lowest rate since December 2025. The unemployed population declined 8.0% to 5.8 million, while the employed population rose 1.0% to a record 103.3 million. Formal private-sector employment also reached a record 39.4 million, lifting total private-sector employment to 53.2 million. The composite underutilization rate fell to 13% from 13.8% in the previous quarter, while the number of people working fewer hours than desired was broadly stable at 4.2 million. Meanwhile, average real monthly earnings remained broadly stable at R$3,762.