Brazil's jobless rate drops to 6.2%, defying high interest rates

SAO PAULO, June 27 (Reuters) - Brazil's jobless rate hit 6.2% in the three months through May, statistics agency IBGE said on Friday, landing below expectations as the labor market continues to provide signs of strength despite stiflingly high interest rates.

The unemployment rate in Latin America's largest economy fell from 6.8% in the previous quarter, while economists polled by Reuters expected it to come in at 6.4%.

Brazil's jobless rate has been hovering around historic lows in recent quarters, an indicator cheered by the government but also cited by the central bank as a factor contributing to inflationary pressures.

The bank last week hiked its benchmark interest rate by 25 basis points to 15%, the highest since July 2006, and signaled it would keep borrowing costs steady for an extended period.

On Thursday, it again mentioned the tight job market, with director Diogo Guillen telling a press conference that "regardless of the metric you look at, this is a heated labor market."

The number of jobless people in Brazil was 6.8 million in the March-May period, down 8.6% quarter on quarter, according to IBGE. Employed citizens totaled 103.9 million, up 1.2% on a sequential basis.

Average real wages were up 0.4% in the quarter to 3,457 reais ($630.03), the statistics agency said.

($1 = 5.4870 reais)