In June, the unemployment rate was 6 percent, IBGE said, calling the drop "statistically relevant."
The government said the number of people counted as unemployed, 1.4 million, was "stable in relation to June and also in relation to July 2012."
There were 23.1 million people counted as employed in July, also "stable in relation to June," although it represents a 1.5 percent gain from July 2012.
Income by volume, at $17.6 billion, remained stable in July compared to June, but rose 2.7 percent from July 2012.
The average income for July came to $755.76, a drop compared to June, but 1.5 percent above July 2012 when the average income was $744.57, the government said.