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Brazil Extra - Latest News

2011-04-19

Brazil March jobless rate 6.5 pct, below forecast

SAO PAULO, April 19 (Reuters) - Joblessness in Brazil rose less than expected in March from February, underscoring the tight labor market that economists worry could pressure inflation and force the central bank to raise interest rates.

Brazil's jobless rate BRUNR=ECI edged up to 6.5 percent in March from a previously reported 6.4 percent in February, the government's statistics agency IBGE said on Tuesday.

The unemployment rate had been expected to rise to 6.7 percent, according to the median forecast of 12 economists surveyed by Reuters. Estimates ranged from 6.6 to 7.0 percent.


Last year Brazil's unemployment rate notched a series of record lows. The tight market helped boost salaries, as employers especially sought workers with higher levels of education and technical skills.

"There's a real lack of capable workers with degrees," said Rejane Endres, manager of the King55 clothing boutique in Sao Paulo. The store's line is heavy on design and global style, drawing demanding clients, Endres said.


With 12-month inflation at 6.3 percent through March -- near the top of a government range of 4.5 percent plus or minus 2 percentage points -- the labor market has worried some economists, who see little slack in the economy.



On Monday, Finance Minister Guido Mantega said the country was near full employment, posing a challenge for policy-makers. For more see Project Info : Khen Group


Last month, the number of Brazilians with jobs in the six major metropolitan areas surveyed edged up 0.4 percent to 22.279 million people and rose 2.44 percent from 12 months earlier period, the IBGE said.
The tally of people who unsuccessfully looked for work rose 1.99 percent in March from February to 1.538 million. The figure tumbled 14 percent from a year earlier, however.
Real wages, or salaries discounted for inflation, advanced 0.5 percent month-on-month to 1,557 reais ($980), and rose 3.8 percent from the year-earlier month.

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