A Brazilian government official said Thursday that it plans to cut up to 1.55 million jobs, including in social welfare and social security, as part of an effort to balance the budget.
The announcement came amid economic uncertainty that has hurt the government’s efforts to balance its budget.
Brazil’s economy shrank by 1.7 percent in 2016.
The government says it will cut spending by 4.5 percent this year, but economists say it is unlikely to achieve this target.
The country’s unemployment rate stood at 8.4 percent in December.
Unemployment in the South American country, which borders Colombia, Peru and Argentina, is more than twice the world average.