UPDATE 1-Brazil creates less than half the jobs expected in July
* Brazil adds 41,463 payroll jobs, 100,000 were forecast
* Report suggests economic slowdown is hurting employment
BRASILIA Aug 21 (Reuters) - Brazil created less than half the number of jobs in July that analysts had expected, government data on Wednesday showed, a further sign of weaker business confidence taking a toll on employment.
Companies and the government in Brazil added a net 41,463 payroll jobs in July, the slowest pace of job creation for the month since 2003, the Labor Ministry figures showed. That was 59 percent fewer jobs than the 100,000 that analysts had expected, according to the median forecast in a Reuters poll.
The sharp slowdown in payroll job creation suggested expectations of a robust recovery in Latin America's largest economy are fading quickly despite dozens of billions of dollars in government stimulus measures, including tax cuts, wage raises and subsidized loans. The economy added 124,000 payroll jobs in June.
Early indicators had already pointed to a sharp deterioration in business sentiment, with a measure of industrial confidence falling to its worst reading since 2009 in the wake of widespread street protests in June. In recent days, economists have lowered estimates for this year's economic growth to near 2 percent, from about 3 percent a few months ago.
The labor market had been the source of encouraging news for Brazil until recently, even as Brazil's meager growth performance has continuously frustrated investors over the past two years. The unemployment rate hit a record low in December 2012.
National statistics agency IBGE unveils the official unemployment rate for July on Thursday at 9 a.m. (1200 GMT). Before the payrolls data was released, analysts had expected it to fall to 5.8 percent from 6.0 percent in June.
- North Korea says Kim's powerful uncle dismissed for 'criminal acts'
- Thai PM calls snap election, protesters press on |
- Protesters fell Lenin statue, tell Ukraine's president 'you're next'
- Billy Joel, Shirley MacLaine feted at Kennedy Center Honors
- Singapore hit by rare outbreak of rioting, 27 arrested |