(Adds details on cuts, breakdown by sector)
BRASILIA, Oct 26 (Reuters) - Job cuts in Brazil increased unexpectedly in September, according to government data, in another sign that the country's two-year-long recession took a turn for the worse.
Brazil shed a net 39,282 payroll jobs in September, the Labor Ministry said on Wednesday, compared with 33,953 job cuts in August and 95,602 in September 2015.
Economists expected payroll jobs to decrease by 16,000 in September, according to the median forecast in a Reuters poll.
Brazil's economy is expected to shrink more than 3 percent for a second straight year in 2016. With 12 million workers officially considered unemployed, the economy shed 1.6 million jobs over the past 12 months.
In September, the Labor Ministry recorded a net 27,591 job cuts at construction companies and 15,144 job losses at services firms. Manufacturers and retailers reported job gains, but hired only 9,363 and 3,940 workers in the month, respectively. (Reporting by Cesar Raizer; Writing by Silvio Cascione; Editing by Chris Reese, Bernard Orr)