Loading ...News - Brazil’s Jobless Rate Fell to Annual Low in September
Oct. 22 (Bloomberg) - Brazil’s unemployment rate fell more than expected in September, cementing expectations that the nascent economic recovery will gain momentum in the coming quarters.
Unemployment in Brazil’s six major metropolitan areas fell to 7.7 percent, its lowest level this year, from 8.1 percent the previous month, the national statistics agency said. The jobless rate fell more than 26 of 27 analysts were expecting in a Bloomberg survey whose median estimate was 8 percent.
“This is a sign we’re in a solid recovery,” said Pezco Pesquisa e Consultoria’s Frederico Turolla, the only analyst who correctly forecast the drop.
Brazilian companies created jobs in September at the fastest pace in a year, the Labor Ministry said Oct. 14. In the first nine months of the year, Latin America’s largest economy added 1.03 million jobs, erasing the nearly 800,000 layoffs incurred during the crisis.
As the labor market strengthens, analysts expect growth to accelerate, putting pressure on the central bank to raise interest rates.
Traders are betting policy makers will have to raise the benchmark Selic rate to 8.94 percent by January from its record low of 8.75 percent, according to estimates based on overnight interest-rate futures contracts.
The real was little changed at 1.7346 per dollar at 8:37 a.m. New York time from 1.7345 yesterday.
Source: Bloomberg.
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