According to Sinduscon-SP, the São Paulo construction industry association, and FGV Ibre, the Brazilian Institute of Economics of the Getulio Vargas Foundation, the pace of employment growth in construction has been decelerating. Data from Caged, Brazil's formal employment register, show the sector created 12.000 new formal jobs in May, against 16.600 created in the same month of 2025. In the 12 months through May, construction generated 91.000 jobs, down from 98.700 in the immediately preceding 12-month period.
Employment did not grow in every state in May. São Paulo state shed 688 formal jobs, repeating on a smaller scale what happened in May 2025, when it closed 983 positions. Santa Catarina, Rio Grande do Sul, Espírito Santo, Roraima, Alagoas and Rio Grande do Norte also reduced their number of construction employees. Variation also occurs within states: in the city of São Paulo, the balance between hires and dismissals in the sector was just 43 workers in May, again mirroring the pattern seen in May 2025, when this balance stood at only 57.
The figures mainly reflect a slowdown in construction activity since December, according to the majority of construction firms polled in FGV Ibre's Construction Survey in June, although the main factor firms cited as limiting business growth was the shortage of labour. The survey found the sector remains moderately pessimistic, with declines in the indicators for Current Business Situation, Contract Portfolio and Expected Demand, alongside a slight improvement in Business Trend.
Despite these difficulties, construction remains highly relevant to the economy. In May it was the second-largest job creator among all sectors, accounting for 16,5% of the 72.900 jobs generated nationwide that month. At the end of May, construction employed 3,1 million workers.