Brazil's Jobless Rate Falls

SAO PAULO (Reuters) – Brazil's jobless rate fell to 6.4% in the three months through September, according to the statistics agency IBGE. This is below market expectations and marks the second-lowest unemployment level on record.

The jobless rate dropped from 6.9% in the April-June period and 7.7% a year earlier. Economists polled by Reuters had projected an unemployment rate of 6.5% for this period.

The number of jobless people in Brazil was 7.0 million from July to September, down 7.2% quarter-on-quarter. The total number of employed citizens reached 103 million, representing a 1.2% increase and the highest ever recorded.

Average real wages stood at 3,227 reais ($559.29) during this period, as reported by IBGE.

Brazil's jobless rate has remained around historically low levels for the past year, an indicator praised by the government. However, there are concerns that a tight labor market could lead to inflationary pressures.

Last month, the central bank raised its benchmark interest rate for the first time in over two years, increasing it by 25 basis points to 10.75% due to stronger-than-expected economic activity and labor market pressures.

($1 = 5.7698 reais)