• Categories
  • Archives

Brazil Hopeful Lower Interest Rates Will Create More Jobs

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:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

In Brazil, Women Become Majority in High School and College

Females already comprise the majority of students in secondary and undergraduate education in Brazil. ...

Where the Buck Stops

Lula is putting politicians in charge of Brazil’s money. Central Bank chief, Henrique Meirelles ...

Brazil Uses Its Own 20-Minute AIDS Test

In 2006, Brazil will begin using rapid tests developed by the Oswaldo Cruz Foundation ...

Brazilians Save One Quarter of GDP

Between July and September, Brazilians saved the equivalent of nearly a quarter of all ...

Africa Vows to Make Brazil’s WSF the Continent’s Biggest Event

The internationalization of the World Social Forum (WSF) will be redoubled in 2007, when ...

After 21 Deaths, 4,000 Policemen Take Over Rio’s Streets

Four thousand military policemen have taken to the streets of Rio and Greater Rio ...

Now, President’s Son Is Latest Suspect in Brazil’s Corruption Scandal

There seems to be no end to the barrage of accusations against Brazilian President ...

Daguerreotype and the Birth of Photography in Brazil

Louis-Jacques Mandé Daguerre (1787-1851) was a French artist from whose name was coined the ...

Brazil's CVRD

Brazilian Multinationals Want a Bigger Share of the World Market

The Brazilian companies are taking up better and better positions in the list of ...

Brazil’s Leadership in Ethanol Was Born in the 1930s

Thirty years ago, when one liter of ethanol was worth three times more than ...