UPDATE 2-Brazil October job creation a record for month

Mon Nov 16, 2009 2:20pm EST
 
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* Brazil's economy adds 230,956 payroll jobs in October

* Result is record for month of October

* It is the ninth straight month of increases (Updates with quote and details, adds byline)

By Isabel Versiani

BRASILIA, Nov 16 (Reuters) - Brazil's economy added jobs for a ninth straight month in October and marked a record for the month, the Labor Ministry said on Monday, in the latest sign of a strong recovery in Latin America's largest economy.

The economy added 230,956 payroll jobs in October, taking the number of jobs added so far this year to more than 1 million.

Brazil, which emerged from a six-month recession in the second quarter, would create twice as many jobs in 2010, Labor Minister Carlos Lupi told reporters in Brasilia.

"The industry will grow a lot next year, but the services (sector) will be the main driver of hiring," Lupi told a press conference.

He expected 1 million to 1.1 million jobs would be created in 2009 and for the figure to rise to 2 million in 2010.

His estimates are based on a 2 percent growth forecast for this year and a projection of 7 to 8 percent growth in 2010.

The projections are far more optimistic than those of market analysts, who are betting on growth of 0.2 percent in 2009 and 5 percent in 2010, according to a weekly central bank survey.

Last month's job creation was mainly due to a 1 percent rise in employment in the industrial sector, Lupi said.

Between January and October, 1.16 million jobs were created, which was the lowest for that period since 2003. Lupi expected 150,000 jobs to be created in November, which would be a record for that month also. There should then be job losses in December due to seasonal factors.

Most of Brazil's work force is not registered with the Labor Ministry and belongs to a vast informal economy. The government of President Luiz Inacio Lula da Silva is seeking to increase the number of payroll jobs in the country. (Reporting by Isabel Versiani; Writing by Ana Nicolaci da Costa, Editing by Leslie Adler)

 

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