Formal hiring slows to the weakest month of the year
July payrolls added 58,568 positions, well short of forecasts.
Brazil's formal labour register, CAGED, showed a net gain of 58,568 jobs in July. It is the softest monthly figure of 2026 and came in well below what economists had pencilled in.
The contrast with the household survey is instructive. Unemployment is at a record low, but the pace at which employers are adding registered positions is fading. That is consistent with an economy that is still growing, but slowly, after several quarters of high borrowing costs.
For the central bank, weaker formal hiring is a mild argument in favour of continued cuts, since it points to cooling demand for labour without a sharp rise in joblessness.
August data, due at the end of September, will show whether July was a one-off or the start of a softer second half.