Loading ...New - Brazil September Job Growth Erased Recession Layoffs
Oct. 14 (Bloomberg) — Brazilian companies added jobs in September at the fastest pace in a year, allowing the economy to recover all the jobs lost during the global financial crisis.
The Labor Ministry said today that it registered 252,617 jobs in September, compared with 242,126 in August. That brings the total of jobs created this year to 1.03 million, more than the 797,515 workers laid off in late 2008 and early this year when Brazil sank into recession for the first time since 2003.
Labor Minister Carlos Lupi said the pace of hiring should accelerate in the fourth quarter, allowing for the creation of 1.1 million jobs this year. Brazil added jobs for the eighth straight month in September.
“Not even the most pessimistic person will find a negative number now,” Lupi told reporters in Brasilia. “The economy will grow more than 3 percent in the third quarter.”
Amid declining exports, domestic demand helped lift Latin America’s biggest economy out of its first recession in six years in the second quarter of this year. The government helped spur the rebound in consumption with record low interest rates, increased credit from state lenders and tax cuts.
“The pace of job creation begins to lose strength,” Jankiel dos Santos, chief economist at Banco Espirito Santo de Investimento, said in a phone interview from Sao Paulo. “More jobs may put some pressure on service prices next year, but not enough to jeopardize the government target.”
The government-registered job creation number is a balance of posts created minus jobs eliminated. Registered jobs, so- called formal work, assure employees a range of benefits such as unemployment insurance, bonuses and retirement payments by the government.
The real rose 0.7 percent to 1.7087 per dollar at 12:45 p.m. New York time from 1.7216 yesterday.
Source: Bloomberg.
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