Brazil joblessness slips and wages edge higher

SAO PAULO: Joblessness in Brazil fell in June, underscoring the tightness in a labor market that has pressured inflation and worried policymakers.

Brazil's jobless rate dipped to 6.2 percent in June from a previously-reported 6.4 percent in May, the government's statistics agency IBGE said on Tuesday.

That was the country's lowest unemployment rate since January.

The unemployment rate had been expected to dip to 6.1 percent, according to the median forecast of 18 economists surveyed by Reuters. The estimates ranged from 5.9 percent to 6.3 percent.

Last year Brazil's unemployment rate notched a series of record lows and has stayed tight since. The low unemployment rates helped boost salaries, as employers especially sought workers with higher levels of education and technical skills.

That, in turn, has fanned worries of speeding inflation, with the IPCA consumer price index above target for three months in a row now.

The central bank has raised interest rates four times this year by a cumulative 150 basis points to try to rein in inflation, and analysts expect the bank to raise rates again this week to 12.5 percent from 12.25 percent.

Last month, the number of Brazilians with jobs in the six major metropolitan areas surveyed edged down 0.17 percent to 22.39 million people but rose 2.3 percent from the year-ago period, the IBGE said.

The tally of people who unsuccessfully looked for work fell 3 percent in June from May to 1.476 million. The figure sank 10.4 percent from a year earlier.

Copyright Reuters, 2011