Brazil jobless rate hits record low despite poor growth

RIO DE JANEIRO - Despite a poor economic growth, Brazil saw a record-low unemployment rate of 5.5 percent in 2012, down from 6.1 percent in 2011, the Brazilian Institute of Geography and Statistics (IBGE) said Thursday.

Some 1.3 million Brazilians were jobless at the end of 2012, down 48.7 percent during the past 10 years, according to IBGE.

However, Brazil registered low economic growth rates in 2012, up only 0.7 percent from January to September, and the growth rate for the year is expected not to surpass 1 percent.

"The job market did not react immediately to the economic slowdown," IBGE researcher Adriana Beringuy said. "We are not seeing any deterioration in the job market."

According to Beringuy, job creation has increased at a slower pace than that of previous years. Labor Ministry reported last week that 1.3 million jobs were created in 2012, the lowest in past three years.

Though the unemployment rate has continuously fallen, it is too early to talk about full employment in Brazil, IBGE's employment survey manager Cimar Azeredo said, adding that some provincial capitals still witness high unemployment and the average incomes of workers vary between regions.

Brazil will host the 2014 World Cup and Rio Summer Olympics in 2016.