Brasília - According to minister of Labor, Jacques Wagner, there is no great mystery about employment. "The way to create jobs is to promote growth in labor intensive sectors of the economy," he declared.

Wagner said those areas are construction, tourism and services. He pointed out that expenditures by the worker's compulsory saving fund (FGTS) in basic sanitation, transportation and housing this year will be around R$7.5 billion. "If we can do all that, we will create 800,000 jobs just in those sectors," said the minister, pointing out that this year, with growth below 0.5%, there was a total of 1 million jobs created. As estimates for growth in 2004 are running at around 3.5%, we should have good news, he said.

As for changes in Brazil's union system, the minister said that following consultations with all those interested in the matter, new legislation will be ready by February. But he emphasized that the key to more jobs is growth, not union structure.

Wagner called on the business community to look ahead, "think in terms of the medium-term, believe in what they are doing and invest in consistent growth that will create jobs and increase worker income." He added that Brazilian businesses had to find ways to increase competitivity without reducing jobs. "We have to get beyong the idea that the only way to be more competitive is to fire people and reduce salaries," he concluded. (AB)