FX.co ★ Brazil’s Job Creation Cools in July as CAGED Net Payroll Gains Nearly Halve

Brazil’s formal labor market lost momentum in July 2026, with CAGED net payroll jobs rising by 58.57K, a sharp slowdown from the 145.16K positions created in June 2026. The latest figures, updated on 28 August 2026, point to a significant deceleration in the pace of job creation across the country’s formal sector.

The July reading indicates that while Brazil continues to generate net employment, the labor market’s strength has moderated compared with the previous month. The drop in net payroll gains may reflect emerging caution among employers and could signal a more measured hiring environment going into the second half of 2026.

Analysts and market participants will be watching upcoming CAGED releases closely for signs of whether July’s softness in job creation is temporary or the start of a more sustained cooling in Brazil’s formal employment growth.