December 16, 2009 / 2:11 PM / in 8 years

UPDATE 3-Record Brazil Nov job growth is 10th straight rise

* Brazil’s economy added net 246,695 payroll jobs in Nov

* Jobs created for a 10th straight month

* Retail, services driving sectors; farming lost jobs

(Adds analyst, paragraphs 7-8)

By Raymond Colitt

BRASILIA, Dec 16 (Reuters) - Brazil generated a record number of payroll jobs in November, the 10th straight month of rising employment and a sign that Latin America’s largest economy is consolidating its recovery.

Retailers, manufacturers, and builders added a net 246,695 jobs last month, the labor ministry said on Wednesday. Employers created 1.413 million jobs and eliminated 1.166 million jobs, the ministry said.

“The internal market is very hot. It’s the best November in history,” Labor Minister Carlos Lupi told a news conference.

Brazil’s economy emerged from a brief recession in the second quarter. Slower-than-expected growth in the third quarter led some analysts to revise down their yearly projections to a 0.25 percent contraction in 2009.

But growth is expected to bounce back to around 5 percent next year, according to a central bank survey of leading financial institutions released on Monday.

“The Brazilian economy reacted very quickly,” Lupi said.

Brazil will add 1.15 million to 1.2 million jobs in 2009 and more than 2 million in 2010, he added.

Analysts said rising employment would in turn bolster economic growth.

“The numbers indicate a strong recovery of the Brazilian job market, giving support to domestic demand and so, too, the economy,” CM Capital Markets, a Sao Paulo-based brokerage, said in a report.

About half of Brazil’s workforce is not registered with the labor ministry and belongs to a vast informal economy. President Luiz Inacio Lula da Silva’s administration is seeking to increase the number of payroll jobs, which offer social security and other perks, in the country of 190 million people.

The November results were particularly strong because employers had underestimated the economic recovery and needed to hire in time for the year-end holidays, when consumer demand typically peaks, said Lupi.

“For retail, it’ll be the best December during the Lula government,” he said.

The wholesale and retail sectors accounted for nearly half of the new jobs in November.

New lines of credit and historically low interest rates have helped fuel domestic consumer demand.

Brazil’s huge agriculture sector was the only area that lost jobs in November, because of seasonally low harvesting activity, the ministry said. (Editing by Padraic Cassidy)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below