Brazil formal job creation tops expectations in February

SAO PAULO (Reuters) – Brazil exceeded expectations in its formal job creation for February, with the labor ministry on Wednesday reporting a net result of 241,785 positions.

That surpassed the expected 161,000 jobs created, according to a Reuters poll of economists, but fell short of the 353,294 jobs created in the same month last year.

The Brazilian job market is expected to slow this year after a robust performance in 2022, affected by economic deceleration and higher borrowing costs, as the central bank keeps its benchmark rate at a six-year high to tame inflationary pressures.

Four of the five activity groups showed positive results in February, with the services sector standing out by adding a net 164,200 positions.

The average monthly salary for new jobs created decreased by 2.47% from the previous month to 1,978 reais ($385).

Brazils total number of formally registered workers rose 0.57% from January to 42.8 million. However, this figure excludes nearly 40 million undocumented workers who do not have formal employment registration.

($1 = 5.1366 reais)

(Reporting by Peter Frontini and Marcela Ayres; Editing by Steven Grattan and David Gregorio)