The Brazilian job market continues to expand, but high interest rates are hindering faster growth, says Luiz Marinho.

247 - In an interview with good night 247Brazilian Labor Minister Luiz Marinho celebrated the progress in the formal Brazilian labor market. According to Marinho, Brazil registered a total of 1.347.807 new jobs with formal contracts by July 2025, surpassing the annualized mark of 1,5 million jobs. He believes this result is a product of public policies implemented by President Luiz Inácio Lula da Silva's government, which aim not only at the reindustrialization of the country but also at increasing the minimum wage and strengthening social programs.

Marinho highlighted that, although the job market is constantly expanding, the acceleration of growth has been hampered by high interest rates. "The job market is booming, but it would be much better if interest rates weren't so high," he stated. The minister explained that, in the last three months, job creation has shown signs of slowing down, although the number of vacancies continues to grow significantly. He attributes this slowdown to high interest rates, which hinder investment and faster economic growth.

Another important point addressed by the minister was the participation of young people in the formal job market. Marinho revealed that 94.965 of the new jobs created in July were filled by young people aged 18 to 24, refuting the idea that Brazilian youth are not very interested in formal employment. "What young people don't want is a miserable salary," said Marinho, reinforcing the need to offer fairer wages to attract and retain the new generation in the job market.

Furthermore, the minister mentioned ongoing measures to combat the gender pay gap, highlighting that while the implementation of the equal pay law was an important step, there is still a long way to go to ensure the effective application of the legislation. Marinho explained that companies are currently required to submit reports on the gender pay gap and create action plans to correct the disparities. He also revealed that the ministry is intensifying its oversight of companies to ensure compliance with the law, especially with the expansion of the labor inspector team, which will be reinforced with the hiring of 900 new professionals starting in September.

Finally, Marinho spoke about the solidarity economy as an alternative for the development of new production chains in Brazil, especially in areas like the Northeast. He mentioned the creation of cooperatives and self-management projects as a solution for many workers in sectors affected by the economic crisis. "The solidarity economy is an escape valve for those who want to question the capitalist model and seek a new model of production," he stated.

The minister also spoke about the challenges faced by informal workers, especially those working on delivery and transportation platforms. According to Marinho, although the government attempted to implement a project to guarantee social security benefits for app drivers, the project did not move forward due to a lack of support from the categories themselves. He emphasized that, for these workers to have access to benefits, it is essential that the category be formalized. Watch: