Brazil’s formal labor market suffered a sharp reversal in December 2025, as CAGED net payroll jobs plunged by 618.16K, according to data updated on 29 January 2026. The move marks a stark contrast with November 2025, when the indicator recorded a positive net gain of 85.86K jobs.
The December data underline a significant deterioration in formal employment conditions at the end of the year, wiping out recent gains and signaling increased pressure on the labor market. Analysts and market participants will be watching upcoming releases closely to assess whether this abrupt downturn represents a seasonal adjustment, a short-term shock, or the beginning of a more prolonged weakening in Brazil’s employment dynamics.
