Income growth paused, but trend remains intact, IBGE says

Average monthly earnings from all jobs stood at R$3,726 in the three months through May, slightly below the R$3,756 recorded in the previous rolling quarter, which ended in February.

The IBGE classified the 0.8% decline as statistically stable because it falls within the survey’s margin of error. Even so, it was the first negative reading since September 2024, when average earnings fell 0.4%.

Commenting on the results, Kratochwill said that only one of the 10 economic activity groups tracked by the IBGE posted a significant decline in earnings during the period: public administration, defense, social security, education, human health, and social services.

“The only significant decline occurred in one specific segment—public-sector workers without formal employment contracts—which does not account for a large share of the workforce. That slightly pulled average earnings lower,” he said.

“Only this segment showed a statistically significant decline in income. All the other activity groups remained statistically stable. […] The labor market has not undergone any major changes; there has simply been a pause in income growth,” he added.