Brazil’s unemployment hits a record low as inflation exceeds its ceiling

Brazil’s unemployment rate fell to 5.2% in July–September, its lowest level since records began in 2012.

The country had 103.6 million people in work, 1.2% more than a year earlier, and the number of employers reached a record 4.5 million.

These figures suggest some optimism, although forecasts put economic growth near 1.8% in 2026 and 1.3% in 2027.

At the same time, inflation rose 4.58% over 12 months, above the government’s 4.5% ceiling and well above its 3% target.

The Central Bank’s interest-rate policy is the only clearly identified tool to curb rising prices, but high rates also put pressure on businesses and consumers.

Markets are waiting for clear government plans to tackle inflation, including efforts to control public spending; the economic team is expected to present plans and outlooks for the short and medium term.