Brazil Hopeful Lower Interest Rates Will Create More Jobs

Brazzil Magazine covers

At yesterday’s, January 18, presentation of the General Register of Employment and Unemployment (CAGED), the Brazilian Minister of Labor and Employment, Luiz Marinho referred to the results in 2005 as "very positive."

1.254 million new formal jobs were created over the course of the year, an increase of 5.09%.

"It was not as good as in 2004," Marinho observed. 1.523 million new formal jobs were created in 2004, more than double the total of 645,433 new formal jobs created in 2003.

Marinho also announced that the country’s employment level fell 1.10% in December, in comparison with November. According to the minister, December is usually a month of dampened economic activity, mainly in consequence of the lull between agricultural harvests, the end of the school year, and lower industrial demand.

He said that 286,719 formal jobs were eliminated in the final month of 2005. Still, this decline was less than in December, 2004, and December, 2003, when job losses amounted to 353,093 and 299,918, respectively, according to the CAGED.

The biggest reductions were in manufacturing (-103,272 jobs), agriculture (-102,685), services (-47,400), and construction (-30,338).

In the minister’s view, the slower pace of job creation in 2005 was caused by the high benchmark interest rate (SELIC), but the situation is bound to improve this year, in consequence of the process that began last September of lowering interest rates and the "resulting increase in job-generating investments that this makes possible."

17.25%, New Selic

After a meeting that lasted four hours and 46 minutes, the Brazilian Central Bank’s Monetary Policy Committee (Comitê de Polí­tica Monetária) (Copom) announced that it had unanimously decided to reduce the country’s basic interest rate (Selic) by 0.75 percentage points. Thus Brazil’s benchmark interest rate went from 18% to 17.25% per year.

The meeting was the second longest since the Luiz Inácio Lula da Silva administration took office and Henrique Meirelles became head of the Central Bank. Another meeting in February 2003 took over five hours.

Agência Brasil

Tags:

You May Also Like

Brazzil Magazine covers

Brazil Exports US$ 3.4 Billion of Coffee in a Year. An All-Time Record

Brazilian coffee exports yielded US$ 3.4 billion between March 2006 and February this year. ...

Brazzil Magazine covers

Brazilian President Uses Swearword Talking about the Poor

Brazilian president Luiz Inácio Lula da Silva used a four-letter word during a speech ...

Brazzil Magazine covers

Chavez’s Allies Sure Venezuela Will Be a Mercosur Full Member by March

Venezuela’s incorporation to Mercosur will be completed next March according to ABN news agency ...

Brazzil Magazine covers

Suddenly, Brazil and Friends at the WTO Are Geared to Save the World

Just when the WTO's Doha Round had faded into the back pages of specialized ...

Brazzil Magazine covers

To Brazil Honduras Seems to Be Doing Everything Right These Days

The Brazilian vice consul at the embassy in Tegucigalpa, Honduras, Francisca Francinete de Melo, ...

Brazzil Magazine covers

After Overweight Remark Brazil’s Lula Tries to Make Amends with Striker Ronaldo

Football and politics, politics and football, it’s hard to find the leading thread particularly ...