Brazil creates fewer than expected formal jobs in April

<html xmlns=""><head><title>UPDATE 1-Brazil creates fewer than expected formal jobs in April</title></head><body>

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BRASILIA, May 31 (Reuters) - Brazil's formal job creation fell short of expectations in April, with a net of 180,005 positions, according to figures released by the Labor Ministry on Wednesday.

Economists polled by Reuters were expecting that204,800 jobs would be created in the month.

All five activity groups surveyed showed positive results, led by the services sector, which accounted for the highest number of net positions (+103,894).

The average monthly salary for new jobs created increased by 2.26% from the previous month to 2,016 reais ($403).

Brazil's total number of formally registered workers rose 0.42% from March to 43.15 million. The figure does not include nearly 40 million undocumented workers who are not formally employed.

Earlier on Wednesday, statistics agency IBGE reported that Brazil's jobless rate fell to 8.5% in the three months through April, below market expectations and marking the lowest level for the period in eight years.

Nevertheless, economists project the unemployment rate to likely embark on a gradual upward trajectory in the coming months as the impetus from the post-Covid-19 reopening loses momentum and tight monetary policy and sluggish economic activity affect investments.

($1 = 5.0033 reais)

Reporting by Marcela Ayres; Editing by Lisa Shumaker


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