Loading ...News - Brazil Company Hiring Outpaces Job Losses This Year
May 18 (Bloomberg) -- Brazilian companies hired enough workers in the past three months to offset the plunge in employment in January, putting the net number of government- registered jobs created this year into positive territory.
The Brazilian economy generated 106,205 jobs in April for a total of 150,202 government-registered jobs in 2009, the Labor Ministry said in a report distributed today in Brasilia. Job creation in February, March and April offset the loss of 101,748 jobs in January.
The rise in new jobs signals that some industries are rebounding from the deepest contraction on record in the last quarter of 2008 after the government cut sales taxes on cars, home appliances and building materials, and the central bank slashed interest rates. Brazil entered a mild recession in the first quarter, Trade and Industry Minister Miguel Jorge said on May 12.
“The worst is behind us,” Finance Minister Guido Mantega told reporters today in Rio de Janeiro. “We’re recovering on all fronts.”
Mantega said the country’s “technical recession,” defined as two consecutive quarters of economic contraction, will end with expansion in the second quarter. He forecast gross domestic product will expand between 3 percent and 4 percent in the last quarter of 2009 from the same period a year earlier.
Million Jobs
Brazil, Latin America’s biggest economy, will create more jobs this month than in April, Labor Minister Carlos Lupi told reporters today in Brasilia. He expects the economy to generate more than 1 million jobs this year and economic growth of between 2 percent and 2.5 percent.
“From now on we’ll have a strong, continuous growth in job creation,” Lupi said.
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.
Brazil’s currency, the real, gained 2.1 percent to 2.0705 per dollar at 5:04 p.m. New York time from 2.1153 late May 15.
Source: Bloomberg
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