Brazil’s labor market showed signs of recovery at the start of 2026, as CAGED net payroll jobs returned to positive territory in January. The indicator registered a gain of 112.33K jobs, reversing the sharp contraction seen at the end of last year.
In December 2025, CAGED net payroll jobs had fallen by -618.16K, signaling a significant weakening in formal employment. The latest January 2026 reading suggests a notable shift in momentum, indicating that hiring in the formal sector has improved after the year-end downturn.
The updated figures, released on 03 March 2026, will be closely watched by investors and policymakers as a potential early sign of stabilization in Brazil’s labor market and, by extension, domestic demand and economic activity in the months ahead.
