More evidence from Brazil that the global recession is over–in that economy.
Figures released on September 17, 2009, show that the Brazilian economy created a net 242,126 formal jobs in August. Net formal job creation for the year stands at 680,034.
Add that to data from last week showing that Brazil’s GDP had climbed by 1.9% in the second quarter and the case arguing that Brazil has entered a sustainable rcovery looks very solid. (For more on that data and a buy to take advantage of the recovery, see my September 11, 2009 post http://jubakpicks.com/2009/09/11/buy-market-vectors-brazil-small-cap-etf-brf/ ).
Brazil’s finance minister recently projected that the economy will grow by 4% in 2010.
What’s especially encouraging to me is that job growth stimulates consumers to spend and makes it more likely that Brazil’s economy recovery will be built on the solid foundation of domestic demand rather than on more easily reversed trends in the global commodities market.
The number of new jobs created measured by these official statistics seriously undercounts the real strength of the total Brazilian economy. The majority of Brazilian workers have jobs in the informal economy without a formal work contract. If the formal job market is growing, given the reluctance of many employers to add formal workers since it limits their flexibility and costs more, you can be almost certain the informal job market is growing even faster.