Brazil reports increase in unemployment rate

Brazil reports increase in unemployment rate

Brazil's unemployment rate rose higher than expected to 10.6% in February 2005, said the Brazilian government. The unemployment rate increased as more people entered the labor market but the number of jobs across the country remained steady. Seasonal layoffs following Carnival in Rio in early February added to the unemployment figures. Economists suggest that Brazil's job market has begun to feel the full impact of the Central Bank's seven interest rates hikes since September 2004.