Good moment of the labor market in Brazil does not hide persistent inequalities
Brazil achieved its lowest unemployment rate in 2025 since 2012, but significant disparities among states remain evident.
In 2025, Brazil reported its lowest unemployment rate recorded since 2012, signaling a notable improvement in the labor market. However, when analyzing the situation from a regional perspective, stark inequalities persist among the states. Over half of the 27 states in Brazil experienced unemployment rates that exceeded the national average, with the highest figures found in Piauí, Bahia, and Pernambuco, contrasting sharply with lower rates in states like Mato Grosso and Santa Catarina.
The disparities are attributed to various factors, including the strength of specific industries in different regions. The Central-West region, for example, has seen robust growth in agribusiness, which has positively impacted employment rates there. In contrast, the Southern and Southeastern regions boast a more established industrial base that consistently produces more jobs. Despite the overall reduction in unemployment, individuals like Almir Costa Pavão, a peanut vendor from Maranhão, illustrate the ongoing challenges faced by many Brazilians, especially those in informal employment, who remain vulnerable despite improvements in the broader economy.
This situation highlights the complexity of Brazil's economic landscape, where progress in national employment rates does not translate uniformly across the country. Addressing these disparities is crucial for ensuring that economic growth benefits all citizens equally, rather than leaving behind those in less prosperous regions. The Brazilian government may need to implement targeted policies aimed at reducing regional inequalities to foster a more inclusive economic recovery.