BRASILIA (Reuters) – Formal job creation in Brazil spiked to a record high in October, figures showed on Thursday, as the dominant service sector bounced back to account for about 40% of new jobs.
The 394,989 net formal jobs were created in October, the economy ministry said, marking the fourth straight month of gains and significantly more than the 233,500 forecast in a Reuters economist poll.
The economic ministry chart below shows the scale of job growth in October compared to the same month in previous years.
Graph: Brazilian formal employment growth –
That reduced the net number of formal job losses in the first 10 months of this year to 171,139, the ministry said, also significantly less than 2015 and 2016 when Brazil was last in recession.
Welcoming the record, Economy Minister Paulo Guedes said that Brazil could end the year with no formal job losses at all as the economic rebound in the second half of the year brought back most of the jobs lost in the first half.
“In this recession … we don’t lose focus, we bounce back, and we create jobs very quickly. We can reach the end of the year without losing our formal jobs. Zero, “said Guedes, adding that this represents” a historic year for the Brazilian economy “.
In October, 1.55 million jobs were created and 1.15 million cut, the ministry said. Services leads with 156,766 new jobs, followed by trade (115,646) and industry (86,426).
In the first 10 months of 2015 and 2016, 818,918 and 751,816 jobs were lost, respectively, according to economy ministry figures.
The figures also show that the formal labor market in October consisted of 38.6 million workers, the highest since March this year as desperate workers returned to find work.
Official labor market data for the three months to September will be released next week. The unemployment rate is expected to rise to a new high of 14.9% from 14.4%.
Reporting by Jamie McGeever; Edited by Angus MacSwan