Brazil’s job machine slowed sharply in September, posting the weakest September in the ministry’s current data series. Hiring still beat firing, but by far less than economists had expected.
Brazil created 121,305 net formal jobs in September, the Ministry of Labour and Employment said on Wednesday 4 November. Formal jobs are those with a signed work card, and the monthly count is called the Caged, short for the General Register of Employed and Unemployed.
That is 43.5% below the 214,609 jobs of September 2025, and the lowest September since the series began in 2020. It is a cooler reading for the Brazil economy, Latin America’s largest.
Hiring Still Beat Firing, but by Far Less
Employers made 2,214,437 hires in September and recorded 2,093,132 exits. The gap between them is the 121,305 net gain.
Four of the five big sectors added jobs and one lost them, the ministry said. About 78.1% of the new posts were standard contracts, and 21.9% were atypical ones such as apprenticeships, temporary and part-time work.
Compared with August, the monthly gain fell by roughly a quarter. August was revised to about 161,000 after first being reported near 165,800.
Why Did Analysts Miss So Badly?
Financial-market forecasters had pencilled in about 156,000 new jobs, and the median estimate in another survey was about 163,600. The real figure landed 22% to 26% under those marks.
None of the reports we reviewed names a single cause. One explanation economists often give is the central bank’s policy rate, the Selic, which stands at 13.75% and makes borrowing costly for firms that would otherwise hire.
The average starting wage was R$2,429.41 (about US$448 at 5.42 reais per dollar).
What It Means for US Readers
For US holders of Brazilian shares and ADRs (US-listed shares of foreign firms), such as Itaú (ITUB), Brazil’s largest private bank, and Nubank (NU), a Brazilian digital bank, softer hiring is a mixed signal. It points to slower consumer spending, but it also gives the central bank more room to cut rates, which may help banks and the real over time.
For travellers and expats, a slower job market makes Brazilian employers more cautious, but it does not change visa rules or day-to-day prices. Our Selic guide for foreign investors explains how the rate works.
What Is Not Known
The release does not say how much of the fall is seasonal. One month does not make a trend, and the figure may be revised.
A second weak reading in October would suggest the slowdown is real, while a rebound would suggest September was a dip.
What to Watch Next
Wednesday 4 November: the central bank’s rate committee, Copom, announces its Selic decision at 4:30 p.m. ET. It comes hours after the jobs data.
Thursday 5 November: IBGE, the national statistics agency, publishes September industrial production.
Frequently Asked Questions
How many formal jobs did Brazil create in September 2026?
The Labour Ministry counted 121,305 net new formal jobs in September, from 2,214,437 hires and 2,093,132 exits. That is the weakest September in the series that began in 2020.
What is the Caged?
The Caged is the Labour Ministry’s monthly register of formal hiring and firing. It counts only jobs with a signed work card, not informal work.
Sources: Brazil’s Ministry of Labour and Employment, Novo Caged, September 2026, published 4 November 2026.