Influenced by the loss of vacancies in the health, education and construction segments, common at the beginning of the year, the unemployment rate increased again, reaching 5.8% in the quarter ending in February. This means that 6.2 million people unsuccessfully sought work in the quarter, 600,000 more than in the quarter ended in November 2025. Even so, the rate is the lowest one for a quarter ending in February since the beginning of the time series in 2012. The good news for the job market is the usual real earnings from all jobs, which once again reached a record level, hitting R$3,679, an increase of 2.0% in the quarter and of 5.2% in the year. The data are from the Monthly Continuous PNAD, released today (27) by the IBGE.

In the quarter ending in February, the employed population (102.1 million) registered a drop of 0.8% (874 thousand people less) and an increase of 1.5% compared to the same quarter last year (1.5 million more people). In the quarter, jobs were strongly reduced in the group of Public administration, defense, social security, education, human health and social services (696 thousand people less). And also in Construction (245 thousand people less).

“In both cases there is the influence of seasonal movement, especially in the education and health segments, in which a significant part of those employed are provided by temporary contracts in the public sector. In the transition from one year to another, there is a process of closing current contracts, having repercussions on the employment-population ratio of this activity,” explained the IBGE coordinator of Household Sample Surveys, Adriana Beringuy. “Construction also records lower demand from families for works and repairs at the beginning of the year,” added the coordinator.

Private sector employees without a formal contract showed a reduction of 342 thousand people

In the employed population, the Continuous PNAD estimated that 39.2 million people were employed in the private sector with a formal employment contract, remaining stable in the quarter ending in February 2026 compared to the quarter ended in November 2025. In the category of self-employed workers, made up of 26.1 million people, stability was also recorded during this period. The same behavior occurred in the employers category (4.2 million people). And domestic workers, estimated at 5.5 million people.

On the other hand, the category of employees in the private sector without a formal employment contract (13.3 million people) showed a reduction of 342 thousand people in the quarter. And the group of employees in the public sector (including statutory officials and the military), estimated at 12.6 million people, also fell by 3.7% compared to the previous quarter.

The number of underutilized people in Brazil grew to 16.1 million

Following the increase in unemployment in the quarter, the composite underutilization rate of the workforce (percentage of unemployed people, time-related underemployed people and people in the potential workforce in relation to the extended workforce) grew from 13.5%, in the quarter ended in November 2025, to 14.1% in the quarter ended in February 2026. This rate represents nearly 16.1 million underutilized people in Brazil, 675 thousand more people compared to the quarter from September to November 2025, when underutilization was estimated at 15.4 million people.

Earnings from all jobs remain at a record level

Estimated at R$3,679 in the quarter ended in February, the usual real monthly average earnings from all jobs remained at a record level, growing 2.0% over the previous quarter and 5.2% in relation to the same quarter a year ago.

“Earnings growth has been driven by the great demand for workers, accompanied by a trend towards greater formalization in trade and service activities,” stated Adriana Beringuy.

According to the activity groups, there was an increase in the categories of Trade, repair of motor vehicles and motorcycles (4.1%, or more R$116), Public administration, defense, social security, education, human health and social services (2.9%, or more R$140) and Other services (11.2%, or more R$313). The other groups did not change significantly.

The informality rate showed a slight drop of 37.5% of the employed population (or 38.3 million informal workers) against 37.7% (or 38.8 million) in the quarter ended in November. “In this quarter, the decline in informality was influenced by the drop in construction (which records a large number of self-employed workers without CNPJ) and in less formalized segments of Industry and Agriculture,” explained Beringuy. In the quarter from December 2024 to February 2025, informality was 38.1% (or 38.4 million).

More about Continuous PNAD

The Continuous PNAD is the major survey on workforce in Brazil. Its sample includes 211 thousand households, spread along 3.500 municipalities, which are visited every quarter. Nearly two thousand interviewers work in the survey, integrated with more than 500 IBGE branches in the entire country. 

Due to the Covid-19 pandemic, the IBGE implemented data collection by telephone on March 17, 2020. In July 2021, the data collection became face-to-face once again. The identity of the interviewers can be confirmed at the Answering the IBGE website or through the Call Center (0800 7218181), and their ID numbers can be requested by the informants. 

See PNAD data on Sidra. The next release of the Monthly Continuous PNAD, for the quarter ending in March, will be on April 30.

What is the Continuous PNAD?

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