Brazil's unemployment rate has risen to 6.8% for the quarter ending in February 2025, according to official data from the statistics agency IBGE.

This figure marks an increase from 6.1% in the previous quarter ending in November 2024, reflecting a concerning trend after months of historically low jobless rates.

The recent rise in unemployment comes despite a period of declining rates that had reached historic lows in prior quarters.

This increase in joblessness has been linked to the Brazilian government's economic policies, which have also influenced the central bank's decisions regarding interest rates.

In response to rising unemployment and increasing consumer prices, the central bank raised interest rates by 100 basis points to 14.25% on March 21, 2025, the highest level since 2016.

Further interest rate increases are anticipated in May as the central bank continues to address economic challenges.

Recent economic data indicate a slowdown in Brazil's economy, raising concerns about future growth and employment levels.

While the government had previously welcomed the decrease in unemployment rates, the current rise poses significant challenges.