Rio de Janeiro, March 25, 2004 (Agência Brasil) - Despite the news of an unemployment rate in São Paulo of 19,8%, one of the highest since 1985, the Minister of Planning, Guido Mantega, estimated that Brazil should end 2004 with a level of unemployment below the 11.2% registered in 2003.

He requested, yesterday (24), a bit more patience on the part of the population and assured that the issue of unemployment is the government's principal concern. "The unemployment rate rose substantially under previous Administrations, reached a peak last year, and is now beginning to react. There was an improvement at the end of 2003, followed by a seasonal fluctuation, typical of the beginning of the year," he informed.

Mantega acknowledged that, unfortunately, unemployment reacts after investments begin. That is when more workers are hired, he explained, adding that only then do the indexes start to change.

According to the Minister, a certain lag exists between the resumption of growth, which companies ofen achieve by using idle capacity, and the decision to expand activities. "We must have a little more patience, because these indexes will appear as these investments become consolidated."

Translator: David Silberstein