Brazil jobless rate hits record low despite high interest rates

SAO PAULO, Jan 30 (Reuters) - Brazil's unemployment rate dropped to a record low in the three months through December, official data showed on Friday, despite borrowing costs at a near 20-year high.

• The jobless rate hit 5.1% in the October-December period, statistics agency IBGE said on Friday, matching expectations from economists in a Reuters poll.

• It was down from 5.6% in the previous quarter.

• Brazil's central bank earlier this week noted that while some indicators have shown moderation signs, the labor market remains resilient, as it kept interest rates at 15%.

• Economists forecast the job market to remain strong in the short term but cool ahead, pressured by high borrowing costs.

• "Unemployment will likely remain near historical lows in early 2026... but slower growth, still-tight financial conditions and fading fiscal support will weigh on hiring," said Andres Abadia, chief Latin America economist at Pantheon Macroeconomics.