Brazil's formal job creation slows to lowest since 2020

BRASILIA, Jan 29 (Reuters) - Brazil created 1,279,498 formal jobs in 2025, data from the Labor Ministry showed on Thursday, the lowest level in five years amid high interest rates.

Job creation fell 24% from the previous year, marking the weakest annual result since Latin America's largest economy closed a net 189,393 formal jobs in 2020, the data showed.

In December alone, Brazil closed a net 618,164 formal jobs, compared with the 478,000 expected by economists in a Reuters poll.

Brazil's central bank on Wednesday held the benchmark Selic rate at 15%, the highest level since July 2006, while signaling it would begin cutting interest rates at its next meeting in March.

The monetary authority said that a broad set of economic indicators continues to show a moderation in economic activity as expected, though noting the labor market has shown signs of resilience.