(Adds details, background)
BRASILIA, July 23 (Reuters) - Brazil’s unemployment rate rose for a sixth straight month in June to the highest in five years, underscoring expectations for a deep recession this year, government data showed on Thursday.
Brazil’s non-seasonally adjusted jobless rate rose in June to 6.9 percent, up from 6.7 percent in May, statistics agency IBGE said. The number was in line with the forecast in a Reuters poll of 25 economists.
The unemployment rate has risen without interruption from a record low of 4.3 percent in December, pushed up by hundreds of thousands of layoffs in the manufacturing and service sectors amid higher taxes and interest rates.
Wages rose in June though, mitigating some of the losses caused by quickening inflation since the beginning of the year. Salaries discounted for inflation gained 0.8 percent from May to 2,149.00 Brazilian reais ($659). They fell 2.9 percent from June 2014.
Brazil’s economy is expected to shrink 1.5 percent in 2015 as President Dilma Rousseff’s government cuts spending and raises taxes to shore up public finances, according to a Reuters poll on Thursday.
Mounting job losses have dragged Rousseff’s popularity down to record lows, below 10 percent, according to recent polls. Most Brazilians favor her impeachment, less than a year after she was re-elected by a narrow margin.
The number of Brazilians with jobs in the six major metropolitan areas surveyed by IBGE fell 1.3 percent from June 2014 to 22.8 million. The tally of people who unsuccessfully looked for work jumped 44.9 percent from the same month a year earlier, to 1.7 million.
$1 = 3.26 Brazilian reais Reporting by Caio Saad; Writing by Silvio Cascione; Editing by Bernadette Baum