The jobless rate fell to 12.4 percent from 13.1 percent in the three months through March, government statistics agency IBGE said on Tuesday. Economists polled by Reuters expected a median 12.6 percent rate.

Yet off-the-books employment accounted for nearly all gains, highlighting how the labor market bounceback still has a long way to go. Off-the-books workers do not enjoy paid holidays, scheduled pay raises and other worker benefits.

Formal employment, meanwhile, was nearly unchanged, keeping a lid on price pressures. Wages remained flat when adjusted for inflation, IBGE said.

This should allow the central bank to keep interest rates at an all-time low for a long time even after product shortages stemming from a nationwide truckers' strike pushed up inflation.

A recent Reuters survey showed the strike had curbed the outlook for economic growth this year by nearly one percentage point, but only temporarily drove up prices.