He played down the figures released by the Brazilian Institute of Geography and Statistics, which revealed a 0.7 percent decline in the employment rate in June. “This turnover we have is normal. At some moments the outflow in a certain sector is a bit larger, but what matters is the overall balance, which shows that employment is still increasing,” Mantega argued.
Employment in the country’s industrial sector, however, reports an accumulated loss of 2.6% in 2014, and July saw the fourth consecutive fall.
The state of São Paulo, home to Brazil’s largest industrial complex, was observed to experience the most significant negative impact, followed by Rio Grande do Sul, Paraná and Minas Gerais. On the other hand, the state of Pernambuco was seen to rise, driving up the index.
ABr