In June 2015, the total of salaried employed persons in the industry fell 1.0% over the previous month’s level, in the seasonally adjusted series. It was the sixth consecutive negative rate, resulting in a cumulative loss of 4.1% in the period. As a result, the quarterly moving average decreased 1.0% in the quarter ended in June 2015 when compared with the previous month’s result. The index has been keeping a downward trend since April 2013. Quarter over quarter, there was a 2.4% reduction in the April-June period of 2015. It was the tenth negative rate in a row in this kind of comparison and the most intense of this sequence, accumulating in this period a 9.0% loss. In comparison with the same month a year ago, the industrial employment presented a decrease of 6.3% in June 2015 - the 45th negative result in a row in this type of comparison and the sharpest one since August 2009 (-6.4%). Compared with the same period last year, the total number of salaried employed persons declined both in the end of the second quarter of 2015 (-5.8%), and in the cumulative index over the first six months of the year (-5.2%). The cumulative rate in the last 12 months shrank 4.6% in June 2015 and kept the downward trend started in September 2013 (-1.0%).The complete publication can be accessed here.

Short-Term Indicators of Industry
Brazil - June 2015

*Seasonally Adjusted Series
Source: IBGE, Diretoria de Pesquisas, Coordenação de Indústria

In the comparison with the same month a year ago, the industrial employment shrank 6.3% in June 2015, with the contingent of workers decreasing in the 18 segments surveyed, with a highlight to the negative pressures coming from means de transportation (-11.4%), communication and electric-electronic machinery and apparatus (-13.9%), fabricated metal products (-11.8%), machinery and equipment (-8.9%), food and beverages (-3.0%), wearing apparel (-6.7%), other products of the manufacturing industry (-9.3%), footwear and leather (-7.8%), rubber and plastic (-4.9%), basic metals (-7.3%), paper and press (-4.0%), non-metallic mineral products (-3.1%), textiles (-3.8%) and mining and quarrying (-5.3%).

In a quarterly basis, the salaried employed persons in the industry fell 5.8% in the April-June period of 2015. It was the fifteenth consecutive negative rate in this kind of comparison, and intensified the pace of decline of the first quarter of the year (-4.6%), all comparisons against the same periods a year ago. The loss of dynamism in the total industrial employment between the first and the second quarter happened in 15 of the 18 sectors surveyed. The greatest losses came from food and beverages (from -1.6% to -2.9%), machinery and equipment (from -5.1% to -7.7%), means of transportation (from -8.8% to -10.9%), wearing apparel (from -4.3% to -6.5%), fabricated metal products (from -9.3% to -11.2%) and rubber and plastic (from -0.5% to -2.3%). In contrast, the activity of petroleum refining and ethanol production (from -6.7% to -5.9%) recorded the sole reduction in the intensity of fall among the two first quarters of 2015.

In terms of the cumulative index of first six months of the year, industrial employment recorded decrease of 5.2%, with negative rates in the 18 sectors surveyed. The most relevant negative contributions to the national average came from means of transportation (-9.9%), communication and electric-electronic machinery and apparatus (-12.5%), fabricated metal products (-10,2%), food and beverages (-2.2%), machinery and equipment (-6,4%), other manufactured products (-8.7%), wearing apparel (-5.4%), footwear and leather (-7.5%), basic metals (-6.5%), paper and press (-3.3%), petroleum refining and ethanol production (-6.3%), mining and quarrying industries (-4.6%) and textiles (-2.9%).

Number of hours paid shrinks 0.6% in July

Discounted the seasonal influences, the number of hours paid to workers of industry in June 2015 declined 0.6% over the previous month, the fourth negative rate in a row and a cumulative loss of 3.4% in the period. With these results, the quarterly moving average index recorded reduction of 1.1%, in the quarter ended in June 2015, in comparison with the level reached in the previous month and has remained on a downward trend since May 2013. In the comparison quarter over previous quarter, seasonally adjusted, there was a reduction of 2.5%, in the April-June period of 2015. It was the eighth negative rate in a row in this kind of comparison and the sharpest of this sequence, accumulating in this period a loss of 10.0%.

In relation to June 2015, the number of hours paid to industrial workers registered a reduction of 6.3% in the monthly index, the twenty-fifth consecutive negative rate in this type of comparison. In the comparisons against the same periods of the previous year, the total number of hours paid pointed to a loss both at the end of the second quarter of 2015 (-6.3%), and in the cumulative index in the first six months of the year (-5.8%). By changing from -5.1% in May to -5.3% in June, the annualized rate - cumulative index in the last 12 months - maintained the downward trend started in September 2013 (-1.0%).

In June 2015, the number of hours paid declined 6.3%, when compared with the figure in the previous month. There was widespread decrease, since 17 of the 18 sectors surveyed recorded reduction. The main negative influences came from means of transportation (-11.1%), communication and electric-electronic machinery and apparatus (-14.5%), fabricated metal products (-11.6%), machinery and equipment (-8.4%), other products of the manufacturing industry (-10.1%), food and beverages (-2.0%), rubber and plastic (-6.9%), wearing apparel (-6.0%), footwear and leather (-8.8%), basic metals (-9.0%), paper and press (-5.0%), petroleum refining and ethanol production (-9.0%) and non-metallic mineral products (-3.3%). Conversely, the sector of chemicals (0.4%) was the only positive influence this month.

In a quarterly basis, the number of hours paid fell 6.3% in the April-June period of 2015. It was the sixteenth consecutive negative rate in this kind of comparison, and intensified the pace of decline over the first quarter of the year (-5.2%), all comparisons against the same periods a year ago. The loss in dynamism in the total number of hours paid between the first and the second quarters of 2015 took place in 15 of the 18 places surveyed. The greatest losses came from means of transportation (from -9.1% to -11.8%), communication and electric-electronic machinery and apparatus (from -10.0% to -13.3%), machinery and equipment (from -6.3% to -8.6%), food and beverages (from -2.2% to -2.9%), rubber and plastic (from -1.9% to -3.9%) and wearing apparel (from -4.3% to -5.7%). On the other hand, the activities of other products of the manufacturing industry (from -9.5% to -9.3%) and paper and press (from -4.5% to -4.3%) registered the reduction in the pace of decline between the first two quarters of 2015.

In the cumulative index of the first six months of 2015, there was decrease of 5.8% in the number of hours paid, with decrease in the 18 sectors surveyed. The most relevant negative impacts on the global average were seen in means of transportation (-10.4%), fabricated metal products (-10.7%), communication and electric-electronic machinery and apparatus (-11.7%), machinery and equipment (-7.5%), food and beverages (-2.5%), other manufactured products (-9.4%), footwear and leather (-9.8%), wearing apparel (-5.0%), basic metals (-8.4%), paper and press (-4.4%), non-metallic minerals (-3.5%), petroleum refining and ethanol production (-8.6%), rubber and plastic (-2.9%) and mining and quarrying industries (-4.0%).

In summary, the total number of salaried employed persons and the number of hours paid in industry kept the low-intensity behavior: the former posting the sixth consecutive negative figure in the comparison and the latter registering the fourth month in a row in the same kind of comparison. It is worth mentioning that these figures particularly reflect the decreasing pace of the industrial output since the last quarter of 2013, with a reduction of 10.2% since October 2013. In that same period, the total number of employed persons and of hours paid also recorded losses: -8.3% and -8.8%, respectively. The evolution of the quarterly moving average index stresses this picture of a lower intensity of the industry labor market, since this indicator has kept, in both variables, the prevailing negative behavior since the end of the first semester of 2013.

The signs of low dynamism were also evident in the comparison between the first three months of the year and the second quarter of 2015 - both comparisons made against the same periods a year ago. The analysis shows that both the salaried employed persons (from -4.6% to -5.8%) and the number of hours paid (from -5.2% to -6.3%) stressed the negative behavior, following the downward movement of the industrial output, which changed from -5.9% to -6.7% in this period.

Real payroll shrinks 6.1% in the first semester

In June 2015, the seasonally-adjusted real payroll of industry workers advanced 1.3% against the previous month, after two consecutive months of negative rates. In this period, it accumulated a reduction of 4.7%. In this month's index, the positive influence of the mining and quarrying sector (31.2%), due to the payment of profit sharing by an important company of this sector, became clear, and the manufacturing industry (1.1%) remained registering negative rates during six consecutive months. With these results, the quarterly moving average index for the industry overall recorded reduction of 1.2%, in the quarter which ended in June 2015, in comparison with the level reached in the previous month. It remained on the upward trend begun last February. In the comparison quarter over previous quarter, seasonally adjusted, the value of the real payroll saw a decrease of 3.2% in the April-June period in 2015. It was the fifth negative rate in a row in this kind of comparison, accumulating in this period a loss of 8.2%.

The value of the payroll fell 7.1% in the index of June 2015 - the thirteenth consecutive negative rate in this kind of comparison. In the comparisons against the same periods of the previous year, the real payroll pointed to a loss both at the end of the second quarter of 2015 (-7.5%), and in the cumulative index over the first six months of the year (-6.1%). The annualized rate, cumulative index over the last twelve months, shrinking 4.7% in June 2015, registered the sharpest negative result since November 2003 (-5.0%) and continued the downward trend started in January 2014 (1.6%).

In the comparison with the same month a year ago, the value of the real payroll showed a decrease of 7.1% in June 2015, with negative results in 15 of the 18 segments surveyed. The highlights were means of transportation (-17.4%), food and beverages (-6.3%), machinery and equipment (-10.2%), communication and electric-electronic machinery and apparatus (-14.7%), basic metals (-13.5%), rubber and plastic (-11.4%), fabricated metal products (-11.9%), chemicals (-4.3%), other products of the manufacturing industry (-8.7%), footwear and leather (-8.4%), non-metallic mineral products (-3.3%) and textiles (-3.6%). On the other hand, the sharpest positive figures on the industry overall were recorded by mining and quarrying industries (18.2%) and petroleum refining and ethanol production (15.9%), both influenced by the payment of profit sharing in an important enterprise of these sectors.

In a quarterly basis, the value of the payroll, down 7.5% in the second quarter 2015, registered the fourth consecutive quarter of negative results and showed pace loss over the rates seen in the first (2.1%), second (0.5%), third (-2.9%) and fourth (-3.9%) quarter of 2014 and first quarter of 2015 (-4.9%), all comparisons against the same periods in the previous year. This movement of dynamism loss between the first and the second quarter of 2015 was also seen in 14 of the 18 sectors, with a highlight to means of transportation (from -8.9% to -14.9%), food and beverages (from -1.2% to -5.2%), machinery and equipment (from -3.2% to -7.1%), basic metals (from -7.0% to -11.5%), petroleum refining and ethanol production (from -3.1% to -8.8%) and mining and quarrying industries (from -4.9% to -8.6%). On the other hand, the sectors of tobacco, which went from -19.9% in the first quarter 2015 to -2.0% in the second, and paper and press (from -2.4% to -1.3%), saw the largest reduction in the pace of decline between these two periods.

In the cumulative index over the first six months of 2015, the value of the payroll reduced 6.1%, with negative rates in the 18 activities surveyed, mostly pushed by the drops coming from means of transportation (-11.8%), communication and electric-electronic machinery and apparatus (-11.4%), fabricated metal products (-10.6%), machinery and equipment (-5.1%), food and beverages (-3.2%), basic metals (-9.2%), mining and quarrying (-6.6%), other products of the manufacturing industry (-7.4%), rubber and plastic (-4.5%), footwear and leather (-9.5%), petroleum refining and ethanol production (-6.2%) and paper and press (-1.9%).