Minas Gerais small firms add 7,936 July jobs

Micro and small businesses added 7,936 formal jobs in the month, led by services with 4,716 hires and construction with 2,154. Commerce, which was negative in the overall state tally, still managed to add 376 jobs among small firms. By contrast, medium and large companies cut 4,230 jobs in services and 1,003 in commerce, highlighting a split labor market in which the same sectors are expanding for small operators but contracting for larger ones.

The data also point to a seasonal shift rather than a clean loss of momentum. July’s result was 75.1% below June, when coffee harvest work had boosted hiring in agriculture, but it was still 51.3% above July 2025. The pullback after the harvest is typical in Minas Gerais, where temporary rural jobs often fade once the crop cycle ends. Still, the fact that small firms generated the entire positive balance suggests the private sector’s employment base remains narrow and dependent on domestic-demand segments such as services, retail and construction.

For investors and policymakers, the message is mixed. On the bullish side, small-business hiring can support household income, sustain local consumption and cushion the impact of weaker payrolls at larger firms. That matters for retailers, banks and consumer-facing companies whose sales depend on broad employment growth. On the bearish side, the concentration of job gains in smaller firms can also indicate fragility: these companies are typically more exposed to credit costs, inflation shocks and household indebtedness, all of which could quickly slow hiring.

Belo Horizonte led job creation among micro and small companies, with 3,698 new positions, followed by São Gotardo and Rio Paranaíba, both boosted by agriculture. Women accounted for 5,242 of the new jobs in the small-business segment, and workers aged 18 to 24 captured 4,919 positions, suggesting that entry-level hiring remains a key source of formal employment.

Sebrae Minas said the next phase of the labor market will likely shift toward industry and retail as businesses prepare inventories and staffing for Black Friday and year-end sales. That makes the outlook for small firms crucial: if credit conditions stay tight or consumer balance sheets weaken further, the sector may keep hiring, but at a slower pace and with less room to absorb shocks.