SAO PAULO, Nov 21 (Reuters) - Brazil's jobless rate in October dropped to its lowest level this year as employment growth outpaced a marginal increase in the number of job seekers.
Brazil's jobless rate fell to 5.2 percent in October from 5.4 percent in September, government statistics agency IBGE said.
That was the lowest rate since December 2012, when it reached a record low. The so-called economically active population -- which includes both those employed and those willing to work -- increased 0.1 percent from September at a slower pace than the number of people with jobs, which increased 0.4 percent.
Over the same month a year ago, the active population dropped 0.5 percent, the first decline in four years."Overall, the labor market continues to operate in the neighborhood of full employment, but is showing tepid signs of softness as the rate of job creation and real wage growth has been clearly moderating," wrote Alberto Ramos, head of Latin America research at Goldman Sachs.
Brazil's job market has helped the economy carry through three difficult years since 2010 as exports slowed and companies put off investment plans. However, the slowdown in job creation suggests the unemployment rate could start to increase gradually over the next months, economists said.
"Economic growth will likely not show a significant recovery in the coming quarters," said Marcelo Kfoury, chief Brazil economist with Citigroup, adding that the drop in labor force growth is usually temporary.
Economists said higher family income may have allowed more people to stop looking for work. Real wages, or salaries discounted for inflation, rose 1.8 percent from a year earlier to an average of 1,917.30 reais ($836) a month.
That pace of growth is weaker than in October last year, when salaries rose 4.6 percent from the year before, but shows a recovery from recent months, when high inflation had eaten into most of workers' wage increases.
The unemployment rate, as calculated by the IBGE, tallies jobs in the formal sector, where employees are legally registered, as well as off-the-books jobs in the so-called informal sector. In the formal sector alone, government data showed Brazil's economy added 94,893 net payroll jobs in October, below market expectations.
October's jobless rate was slightly lower than the median forecast of 5.3 percent in a poll of 25 economists. In October last year, the rate stood at 5.3 percent. Economists noted that the number of people with jobs fell 0.4 percent from October 2012, which was also the first annual decline in four years.
Brazil's job market recovered slightly in the northeastern city of Salvador, a political stronghold for President Dilma Rousseff where joblessness had spiked to near 10 percent in recent months. The jobless rate in Salvador fell to 9.1 percent, from 9.3 percent in September.
reuters.com
Brazil's jobless rate fell to 5.2 percent in October from 5.4 percent in September, government statistics agency IBGE said.
That was the lowest rate since December 2012, when it reached a record low. The so-called economically active population -- which includes both those employed and those willing to work -- increased 0.1 percent from September at a slower pace than the number of people with jobs, which increased 0.4 percent.
Over the same month a year ago, the active population dropped 0.5 percent, the first decline in four years."Overall, the labor market continues to operate in the neighborhood of full employment, but is showing tepid signs of softness as the rate of job creation and real wage growth has been clearly moderating," wrote Alberto Ramos, head of Latin America research at Goldman Sachs.
Brazil's job market has helped the economy carry through three difficult years since 2010 as exports slowed and companies put off investment plans. However, the slowdown in job creation suggests the unemployment rate could start to increase gradually over the next months, economists said.
"Economic growth will likely not show a significant recovery in the coming quarters," said Marcelo Kfoury, chief Brazil economist with Citigroup, adding that the drop in labor force growth is usually temporary.
Economists said higher family income may have allowed more people to stop looking for work. Real wages, or salaries discounted for inflation, rose 1.8 percent from a year earlier to an average of 1,917.30 reais ($836) a month.
That pace of growth is weaker than in October last year, when salaries rose 4.6 percent from the year before, but shows a recovery from recent months, when high inflation had eaten into most of workers' wage increases.
The unemployment rate, as calculated by the IBGE, tallies jobs in the formal sector, where employees are legally registered, as well as off-the-books jobs in the so-called informal sector. In the formal sector alone, government data showed Brazil's economy added 94,893 net payroll jobs in October, below market expectations.
October's jobless rate was slightly lower than the median forecast of 5.3 percent in a poll of 25 economists. In October last year, the rate stood at 5.3 percent. Economists noted that the number of people with jobs fell 0.4 percent from October 2012, which was also the first annual decline in four years.
Brazil's job market recovered slightly in the northeastern city of Salvador, a political stronghold for President Dilma Rousseff where joblessness had spiked to near 10 percent in recent months. The jobless rate in Salvador fell to 9.1 percent, from 9.3 percent in September.
reuters.com
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