MercoPress. South Atlantic News Agency

Record unemployment in Sao Paulo

Unemployment last March in Great Sao Paulo reached a record 20,6%, 0,8 higher than last February (19,8) and 0,9 above a year ago according to a report from the Inter-unions Economic and Social Statistics Department, Diese.

The news is particularly damaging for President Lula da Silva's administration because it's the highest since 1985 and affects the industrial hub of Brazil, where 18 million people live.

"This is direct consequence of the disastrous and damaging economic policies for the working class of Brazil enforced by President Lula. This government bends down to speculators and turns its back to the workers", said Paulo Pereira da Silva, president of Fuerza Sindical the second strongest organized union movement in Brazil. "It's shameful, President Lula was elected on the promise he would recover the dignity of the working class and create ten million jobs", added Mr. Pereira da Silva.

According to the report in Sao Paulo and satellite cities that make up the Great Sao Paulo there are two million people without jobs and during last March 129,000 workers were fired of which 87,000 in industry.

The average income of occupied workers in Sao Paulo reached 320 US dollars last March, a 3,3% drop compared to January and the third lowest since 1985.

President Lula da Silva's administration has been praised by multilateral credit organizations such as the World Bank, Interamerican Development Bank and the International Monetary Fund as an example of an efficient well managed economy with great prospects.

World Bank president James Wolfensohn addressing the joint World Bank-IMF annual assembly in Washington over the weekend jokingly said that so much praise for Mr. Lula da Silva could make some believe "that we're on the payroll of the Brazilian presidency".

However the Brazilian Catholic Episcopate was particularly critical of Mr. Lula da Silva and his still pending electoral promises. "The government has been in office for 15 months and many of the objectives have not been achieved. Mr. Lula became president representing the hopes of the Brazilian population but many problems continue unsolved", said Brasilia's Archbishop Joao Braz de Aviz.

Meantime the Brazilian government released the latest trade figures showing that during the first quarter of 2004, Brazil's agricultural exports jumped 37%, reaching 7,84 billion US dollars, mainly soybeans, beef, sugar and alcohol.