Weak job market continues to slow down Brazil's recovery

BRASILIA, Jan. 17 (Xinhua) -- Brazil's labor market is the main factor dragging down the country's economic recovery, according to a report by the country's main commerce body, the CNC, on Wednesday.

According to the CNC, the creation of formal job posts in 2017 was still insufficient to sustain the level of consumption by families.

The institution announced that consumption would likely register 83.6 points in January 2018, up 2.3 percent from December and 9.7 percent year-on-year.

Despite this sustained recovery, the consumption index remains historically low, showing the slowness of Brazil's recovery.

While it has increased by 21.7 percent since July 2016, the lowest point in seven years, it is still far from the consumption boom of late 2010, when the index stood at 143.4 points.

According to the CNC, while formal jobs have been created since Brazil exited its two-year recession in 2017, these have been in sectors requiring less qualifications and paying low salaries.

Furthermore, the drop in the country's interest rate, currently at its lowest rate in over 30 years, will have an impact on the economy throughout 2018, warned the CNC. Enditem