Exclusive - Brazil's Temer says unemployment, not graft probe, biggest worry

Brazil's President Michel Temer, attends an interview with Reuters at his office in Brasilia, Brazil, January 16, 2017. REUTERS/Adriano Machado - RTSVRSU

BRASILIA (Reuters) - Brazil's priority this year will be job creation as its economy emerges from the worst recession on record, President Michel Temer said on Monday, dismissing speculation that key labour and pension reforms could be derailed by a corruption scandal.

In an interview with Reuters, Temer said that Latin America's largest economy would exit a two-year recession in the second half this year but it would take longer to reduce the ranks of Brazil's 12 million unemployed as companies use idle capacity before hiring new staff.