June 22 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva's approval ratings fell to a record low in June as voters held him responsible for failing to meet campaign pledges to reduce unemployment.

The approval rating of Lula's government fell to 29.4 percent from 34.6 percent in May, said pollster Instituto Sensus. Lula's personal popularity rating fell to 54.1 percent from 60.2 percent in May and from a record of 83.6 percent in January 2003, his first month in office.

``We are all disenchanted with this government -- low salaries, high joblessness and this restrictive economic policy that only pleases bankers,'' Sergio Belsito, head of the central bank's union, said in a telephone interview from Brasilia. ``The people who elected Lula are disheartened. I hope he realizes that.''

The poll showed 47.6 percent of those surveyed would not vote for Lula if presidential elections slated for 2006 were held now. In municipal elections slated for October, Lula's Workers' Party is preparing to defend mayoralties in strongholds such as Sao Paulo, South America's biggest city.

``The decline has reached a critical point and Lula is close to becoming unpopular,'' Clesio Andrade, president of Brazil's National Transport Confederation, which commissioned the poll, said at a news conference in Brasilia. ``People have started to understand that Lula hasn't created jobs and he hasn't found solutions for social problems.''

Bonds, Currency

Brazil's jobless rate rose in April to 13.1 percent, its highest level in more than two years, from 12.8 percent in March, as people re-entered the job market at a faster pace than a nascent economic recovery could create new jobs.

The economy expanded 2.7 percent in the first quarter, halting three quarters of contraction that followed Lula's decision to cut spending to rein in the budget deficit. The government predicts the economy will grow 3.5 percent this year after posting its first annual contraction in 11 years in 2003.

Of those polled by Sensus, 66.9 percent said the biggest problem facing Brazil is the need to generate more jobs.

Brazil's benchmark bond maturing in 2040 fell 0.3 cent on the dollar to 92.7, boosting its yield to 11.88, according to J.P. Morgan Chase & Co. Brazil's currency was little changed, weakening 0.1 percent to 3.1350 reais to the dollar at 11:30 a.m. New York time.

Sensus interviewed 2,000 Brazilians in 195 municipalities from June 15 to June 17. The margin of error for the poll is plus or minus 3 percentage points.

To contact the reporters on this story: Katia Cortes in Brasilia at kcortes@bloomberg.net and Charles Penty in Sao Paulo cpenty@bloomberg.net

Last Updated: June 22, 2004 12:18 EDT