INSTANT VIEW-Brazil's 7.25 pct unemployment rate
Reuters, Wednesday, March 04, 1998 at 13:22
BRASILIA, March 4 (Reuters) - Brazil's official rate of
unemployment rose to 7.25 percent in January, up from 4.84
percent in December.
Following are reactions from economists to the figures.
THOMAS MALAGA, ECONOMIST, UNIBANCO
"We expected unemployment to rise throughout the year but
we weren't ready for such a big jump so soon."
He said companies appeared to have reacted quickly to
Brazil's doubling of interest rates and shed jobs ahead of an
expected downturn in the economy.
"There could be an improvement (in unemployment) through the
rest of the year but it won't be significant. Our expecations
are that unemployment in 1998 will average about seven percent."
JOAO MARCOS MARINHO NUNES, PARTNER, MCM CONSULTORES
"It was a big jump, no doubt about it. Our expectations are
for unemployment to rise to a maximum of about 7.5 percent
before falling again."
He said January's jobless rate -- along with a smaller than
expected trade deficit of $214 million in February -- suggested
Brazil's expected economic slowdown was starting to bite.
"These are factors which indicate that the economy really
is in recession. Perhaps the slowdown will be deeper than had
been previously thought."
RITA RODRIGUES, ECONOMIST, TENDENCIA CONSULTORES
"We were expecting a rate around seven percent, but
nonetheless, it's high."
She said Tendencia expected unemployment to continue rising
until reaching a high of 8.7 percent between August and October
and falling again in November and December when end-of-year
seasonal factors would boost demand and jobs.
william.schomberg@reuters.com))
Copyright 1998, Reuters News Service |
