Only 5.3% of Brazilian workers were without a job in the three months ending in July. That drop means more families now have wages to cover their rent and grocery bills, according to data released on Thursday by the Brazilian Institute of Geography and Statistics (IBGE). The rate declined from 5.8% in the previous quarter ending in April, marking the lowest level for this time of year since the series began in 2012.

The total number of unemployed people seeking work fell to 5.8 million, a drop of 503,000 individuals over three months. Meanwhile, the employed population hit a record high of 103.3 million workers, an increase of one million people, which is comparable to the entire population of an average state capital. The construction sector led the job gains, adding 371,000 workers, mainly bricklayers and construction assistants.

Understanding the numbers

The IBGE measures employment through rolling three-month periods in its continuous national household survey, known as Pnad Contínua. This method averages data across consecutive months to smooth out seasonal spikes and show the true direction of the job market.

Average monthly earnings held steady at R$ 3,762 (around $680), compared to R$ 3,786 in April. That sum buys about four basic food baskets in large cities like São Paulo. According to IBGE analysts cited by Folha de S.Paulo, the stability in earnings reflects strong hiring in construction, where entry-level wages tend to be lower than in other sectors.