Number of Jobs Up 3.5% in Brazil, But Real Wages Grow a Meager 0.1%

The salary mass of Brazilian families rose 3.6% between April and June, in comparison with the first quarter of this year.

This result is among the findings revealed by a study of the Gross Domestic Product (GDP), conducted by the Brazilian Institute of Geography and Statistics (IBGE).


According to Cláudia Dioní­sio, an economist in the IBGE’s National Accounts Section, the growth of the salary mass is the reason for the increase in family consumption.


The IBGE study shows that family consumption rose 3.1% in the second quarter, continuing an upward trend that began in the second quarter of 2004.


Other factors to which Dioní­sio attributes the increase are the growth in the number of people with jobs and loans to individuals.


“All of a sudden, someone who was unemployed and was unable to buy became a consumer. All of this facilitates and encourages consumption,” she added.


According to Dioní­sio, the salary mass expands when there are increases in income and employment.


When the second quarter of 2005 is compared with the second quarter of 2004, the percentage of the employed population grew 3.5%, and average real wages rose 0.1%.


Agência Brasil

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