Brazil Surprises All Economists With Job Creation Last Month

Brazil unexpectedly created jobs in November following losses the month before, surprising every economist in a survey by Bloomberg.

Brazil created 8,381 jobs last month following a loss of 30,283 in October, the Labor Ministry reported today from Santa Catarina state. The median estimate of 13 analysts was for a loss of 32,000 jobs.

The economy is showing some signs of recovering after falling into recession in the first half of the year as inflation slows and business confidence increases from record lows. Excluding October, November was still the worst month of job creation this year, and the government is more than 290,000 jobs shy of meeting its target of 1 million for 2014.

Swap rates on contracts due in January 2016 fell three basis points, or 0.03 percentage point, to 12.89 percent at 2:31 p.m. Sao Paulo time. The real appreciated 2 percent to 2.6612 per U.S. dollar.

Retail companies brought on 105,043 people in November while manufacturers and builders shed 43,700 and 48,894 jobs respectively, according to the report.

The job creation figures are total jobs registered with the government minus total dismissals. October job numbers don’t take into account jobs registered with delays.

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