BRASILIA: Brazil added fewer payroll jobs in September than it did a year earlier, but job creation jumped when compared with the previous month, signaling the labor market remains strong even as the overall economy slows.
Manufacturers, farmers and services companies added a net 209,078 payroll jobs in September, compared with a non-adjusted gain of 190,446 jobs in August, the Labor Ministry said on Tuesday. The economy added 246,875 job in September 2010.
"The labor market is growing at a slower rate when compared to 2010, but non-adjusted month-on-month figures shows it continues strong," said Jose Francisco Goncalves, chief economist with Banco Fator in Sao Paulo.
The ministry adjusted the August job figure to 211,522 to add late job fillings not recorded that month. Most in the market, however, use non-adjusted data to measure the strength of the market on a month-on-month basis.
The result topped expectations of several local analysts who had forecast new job creation in September would be below 200,000.
September's job creation figure was the worst for that month in five years, the ministry said.
Although Brazil, Latin American's largest economy, has showed clear signs of a sharp slowdown in recent months, employment has remained near record highs-- further stoking above-target annual inflation of 7.3 percent.
The labor market remains tight, and wage demands are on the rise after years of robust growth and investment ahead of the soccer World Cup and the Olympics in coming years.
Brazil's economic growth is expected to slow to about 3.5 percent this year from 7.5 percent last year.
The labor market usually shows signs of weakening several months after the overall economy slows.
The September figure brings the total net payroll additions for the year to 2.08 million.
In September, Brazil revised its 2011 goal for new payroll jobs to between 2.7 million and 3 million, down from its previous forecast of 3 million.
Copyright Reuters, 2011
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