Brazil Creates in January Half the Jobs Analysts EstimatedMaria Luiza Rabello and Matthew Malinowski
Brazil’s economy in January created about half the number of jobs that economists had forecast amid contracting industrial production and faltering growth.
Brazil’s economy created 28,900 government-registered jobs in January, the Labor Ministry said today in Brasilia. Economists forecast the creation of 50,000 jobs, according to the median estimate from 13 analysts surveyed by Bloomberg. Last year in January, 118,895 posts were created.
President Dilma Rousseff’s administration has worked to reverse two years of declining growth and tame inflation that has remained above the midpoint of the central bank’s target for 30 months. The world’s second-biggest emerging market grew 1 percent last year, the slowest pace in three years, according to the central bank. The economy will grow grow between 3 percent and 4 percent this year, according to Finance Minister Guido Mantega.
“Companies are reducing new hirings due to their frustration about the level of economic activity,” Carlos Kawall, the chief economist at Banco J. Safra SA, said in a telephone interview from Sao Paulo. “There is a trend showing a fall in formal job creation.”
The Labor Ministry forecasts that Brazil will generate 1.7 million jobs this year, up from 1.3 million last year.
Government-registered job creation number is a balance of posts created minus job eliminated. Registered jobs, so-called formal work, assure employees a range of benefits such as unemployment insurance, bonuses and retirement payments by the government.