UPDATE 1-Brazil job creation falls for second straight month
* Economy adds 120,440 jobs in June, worst result since 2009
* Weak industrial activity hits jobs creation in Brazil
BRASILIA, July 23 (Reuters) - Brazil's economy added a net 120,440 payroll jobs in June, the labor ministry said on Monday, fewer than the number of jobs added the previous month and in June 2011, as a slowdown in the local and global economy begins to weigh on the labor market.
Brazil was expected to add 151,000 jobs in June, according to a Reuters poll.
Job creation has fallen in the last two months as a lackluster manufacturing sector leads factories to hire fewer workers.
June's result was the worst for the month since 2009, when the country was still struggling with the fallout of the global financial crisis. The economy added 139,679 jobs in May and 215,393 jobs in June of 2011.
Brazil's robust job market has prevented the economy from falling into recession as a weakening industrial sector drags on growth. A buoyant services sector has been the main generator of new jobs so far this year.
Industries continued to add fewer jobs to the economy in June, underscoring the challenges of a sector that has struggled with a strong local currency, intense competition from abroad and high production costs.
In contrast, job creation in the services sector rose 0.19 percent in June, adding 30,141 jobs to the economy.
Services are generating new jobs in a wide range of businesses ranging from food catering to hotels and hospitals.
In an example of the strength of the services sector here, the franchise managing McDonald's Corp restaurants in Brazil is offering 340 job posts in Sao Paulo, the country's largest city.
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