Labor income grows 7,5% and reaches a historic record in the country in 2025.

247 - In 2025, labor income in Brazil reached its highest level ever recorded since the beginning of the PNAD Contínua historical series, driven by job growth, increases in the minimum wage, and the growth of sectors with greater formalization. The annual total of real habitual income reached R$ 361,7 billion, a 7,5% increase compared to 2024, while the average monthly income of employed workers rose to R$ 3.560, a 5,7% increase over the same period, according to data released by IBGE. 

According to the Continuous National Household Sample Survey, the increase in income occurred in a context of strong improvement in the labor market. The average annual unemployment rate fell from 6,6% in 2024 to 5,6% in 2025, the lowest level since the beginning of the series in 2012. In December, unemployment reached 5,1%, also the lowest result in at least 13 years, reflecting a year of sustained growth in employment in the country.

The coordinator of Household Sample Surveys at IBGE, Adriana Beringuy, highlighted that the increase in income is directly associated with the quality of job growth. “The activities that most expanded employment were those in information, communication, and financial, real estate, professional, and administrative activities, as well as the group formed by public administration, defense, education, human health, social security, and social services. These activities concentrate contingents of more educated workers, with more formalized employment and higher incomes, contributing to the expansion of the average income of the employed population,” she stated.

Beyond the sectoral profile, the increase in the minimum wage played a significant role in the dissemination of income gains. “In addition to these sectoral impulses, the increase in the minimum wage influenced income gains in the most basic and least formalized activity segments. Thus, regardless of the form of employment, income growth was spread to the employed population as a whole,” the researcher emphasized.

The number of employed people also hit a record in 2025, reaching 103 million workers, up from 101,3 million in 2024 and well above the 89,3 million recorded in 2012. The employment rate — the proportion of employed people in the working-age population — reached 59,1%, the highest in the historical series, reinforcing the broad base on which income growth occurred.

The improvement in the labor market occurred without an increase in underutilization or discouragement. According to Adriana Beringuy, “it is important to note that the drop in unemployment was not caused by an increase in underutilization of the workforce or discouragement. The downward trajectory of the unemployment rate in 2025 was sustained by the expansion of employment, mainly in service activities.” The underutilized population decreased from 18,7 million in 2024 to approximately 16,6 million in 2025, while the composite underutilization rate fell to 14,5%, the lowest level in the series.

Income growth was also boosted by the increase in formal employment. The number of private sector workers with formal contracts reached 38,9 million in 2025, a 2,8% increase compared to the previous year and the highest level ever recorded, with an increase of approximately 1 million people. Conversely, there was a slight reduction in the number of employees without formal contracts and a more pronounced drop in the number of domestic workers.

Among self-employed workers, the number reached 26,1 million, the highest in the historical series, with a growth of 2,4% compared to 2024 and an increase of more than 30% compared to 2012. The informality rate, although still high, maintained a downward trajectory, falling from 39,0% to 38,1% in 2025. “The informality rate continued to fall in 2025. Its significant value, however, reflects a structural characteristic of the Brazilian labor market,” noted Adriana Beringuy.

In the quarterly breakdown, data from October to December 2025 confirmed the positive scenario. The unemployment rate of 5,1% was the lowest in the series for comparable moving quarters, with job growth in sectors such as commerce and public administration. "After a drop in employment recorded in the 3rd quarter, commerce showed recovery at the end of the year, expanding its workforce in various segments, especially in the clothing and footwear trade," explained the IBGE coordinator.

With average income and total wages at record levels, 2025 is consolidating itself as a milestone in the historical series of the PNAD Contínua (Continuous National Household Sample Survey), highlighting a more dynamic labor market, with job expansion, reduced unemployment, and widespread real gains among workers.