Brazil's unemployment rate rose for the third month in a row in March to a higher-than-expected 12.8 percent, the state-run Brazilian Institute of Geography and Statistics (IBGE) said on Tuesday.
Four economists polled by Reuters had forecast on average an unemployment rate of 12.2 percent in March after 12 percent in February. In March 2003, unemployment was 12.1 percent.
Finance Minister Antonio Palocci acknowledged last week Brazil's economy failed to create enough jobs to prevent unemployment rising in the first quarter, despite the highest level of job creation in 12 years.
High unemployment and a slow economic recovery have contributed in recent months to a fall in popularity for Brazilian President Luiz Inacio Lula da Silva, who came to power in 2003 on promises to create millions of new jobs.
Economists had expected a more moderate pickup in unemployment since the jobless rate traditionally rises in March in Brazil as economic activity is slow to pick up after the Southern Hemisphere holidays and newly-minted college graduates enter the workforce in large numbers.