Brazil’s unemployment falls to record 5.3% — The Rio Times
In Brazil, the unemployment rate in the quarter ending in July 2026 fell to 5.3% — the lowest figure for the entire observation period of the Brazilian Institute of Geography and Statistics (IBGE). The number of employed people reached a record 103.3 million, while the number of private-sector workers with formal contracts stood at 39.4 million, The Rio Times reports.
At the same time, the pace of formal job creation slowed. From January to April 2026, the CAGED registry recorded 699,762 formal jobs created — 23.4% fewer than in the same period of 2025. Average real monthly earnings amounted to 3,762 Brazilian reais, while the minimum wage in 2026 was 1,621 reais per month.
Work for foreigners
To work in Brazil, a foreigner needs an offer from a local employer and a VITEM V work visa, which is arranged with the employer’s support. From September 1, 2026, applications for temporary visas are submitted online. Working while holding tourist status is illegal and may lead to fines and deportation.
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The VITEM XIV digital nomad visa is available for employees and freelancers who receive income from abroad. The applicant must confirm the remote nature of the work and a monthly income of at least US$1,500. The visa is valid for one year and may be extended once.
Contract terms and own business
Formal employment contracts in the country are regulated by CLT labor legislation. It provides for a 13th salary, 30 days of paid leave with an additional payment equal to one-third of monthly earnings, as well as contributions to the FGTS fund and the INSS social insurance system. At the same time, the employer’s social contributions add approximately one-third to the salary amount.
Foreigners may also own a Brazilian company. The MEI status is available for small self-employed businesses, with an annual revenue limit of 81,000 reais and a fixed monthly payment ranging from 82.05 to 87.05 reais. MEI registration requires a CPF tax number and a valid visa; foreigners living outside the country who own a Brazilian company must appoint a local legal representative.
