For the second consecutive month, hiring in the industrial sector exceeds dismissals, when comparing month/prior month, for the series free of seasonal influences. In consequence of a higher industrial activity pace in 2004, the month of June presented 0.5% increase in personnel occupied, after an increase of 1.1% in May. Such expanding activity is confirmed by the quarterly average moving index, which indicates an increase of 0.4% for the quarters ended in June and May/2004. This index is at its highest level since March last year.

Another expansion indicator for the industrial sector refers to payroll, which in the first half of the year reached 8.9% growth in workers’ earnings. Such data are included in the Monthly Industrial Survey for Employment and Salary [Pesquisa Industrial Mensal de Emprego e Salário] (PIMES).

For the monthly index, employment also presented a positive result (1.6%), the second consecutive increase in this type of comparison. With respect to the indicators for larger periods, the year-to-date figures presents a rate of 0.1%, while the accumulated for the last twelve months drops 0.6%.

In relation to June last year, 12 locations and industrial activities surveyed show a growth for personnel occupied. In terms of sector for total country, the activities that, due to the dynamism in production, participated with bigger positive impacts were: machinery and equipment (13.7%) and food and beverages (3.6%). On the other hand, among the six activities experiencing employment reduction, clothing (-9.7%) and metal products (-7.4%) were highlighted.

Still in the monthly comparison, among locations leading expansions at employment level, were highlighted Minas Gerais (4.6%) and São Paulo (1.1%), which focus were the sectors machinery and equipment (22.6%) and food and beverages (10.9%); Paraná (4.4%), influenced by clothing (18.7%); and North and Center-West region (4.2%), mainly due to a labor increase in food and beverages (7.7%). On the other hand, Rio de Janeiro (-3.7%) and Pernambuco (-5.8%) were the only two locations presenting negative results in employment.

In the quarterly analysis, an increase is noted in the indicator’s pace, against equal period in last year, at the transition from the first (-0.7%) to the second quarter (0.9%). This movement reaches 12 among 14 locations and 15 among 18 activities surveyed. Specifically with respect to the second quarter of current year, the industries that most expand employment level were those from North and Center-West region (4.7%), Minas Gerais (3.9%) and Paraná (3.4%). On the other hand, the most expressive drops happened in Pernambuco (-4.5%), Rio de Janeiro (-3.8%) and Espírito Santo (-2.9%).

Accumulated indicator has the first positive result for the year

In relation to the accumulated indicator for the first half of the year, industrial employment grew 0.1%, so indicating the first positive result for the year. Among regions, negative rates prevail, with highlights for the vacancies closing in Rio de Janeiro (-3.9%), São Paulo (-0.5%) and Rio Grande do Sul (-1.8%). In these locations, highlight, respectively, the drops in metal products (-30.9%), clothing (-26.4%) and shoes and leather (-7.5%). In opposition, Minas Gerais, presenting an increase of 3.6%, presents the best performance, followed by North and Center-West region (2.8%) and Paraná (2.2%), both influenced by hiring expansions in food and beverages sector.

In terms of sector, still in the accumulated indicator for January-June, hiring exceeds dismissals in 11 businesses, highlighting the positive influence coming from machinery and equipment (11.7%), followed by food and beverages (2.2%) and manufacturing of transportation means (3.8%). Again accounting for a more significant negative pressure, is highlighted the clothing industry, which drop in personnel occupied reaches 10.5%.

Dropping pace in the accumulated indicator for the last twelve months is lower in June

On the other hand, the accumulated indicator for the last twelve months presents a smooth declining in employment pace against previous months: -0.9% in April, -0.8% in May and -0.6% in June. The number of dismissals was larger than the hiring in ten locations reviewed, among which were highlighted for the main negative influences, São Paulo (-1.3%), Rio de Janeiro (-4.5%) and Rio de Grande Sul (-2.2%) industries. In opposition, the North and Center-West region (2.7%), Paraná (2.2%) and Minas Gerais (1.3%) were locations presenting the main positive impacts on employment. In sectorial terms, clothing (-9.4%) accounts for the main negative pressure, while machinery and equipment (7.7%) is highlighted as the largest positive contribution.

In summary, the increase in industry personnel occupied observed in June has a reflection on the quarterly moving average index, which remains showing an ascending route in last months, accumulating 1.8% for the quarters closed in last June and December/2003. When comparing to prior year, the results are positive both monthly and year-to-date, while the accumulated indicator for the last twelve months, even still presenting a negative rate, maintains a progressive reduction in the dropping pace.

Number of hours paid increases 0.9% in June

In June, total hours paid to industry workers grew 0.9% in relation to May, already discounting the seasonal effect. The monthly and accumulated indicators for the year presented 2.1% and 0.5% increases, respectively. Although keeping an ascending route, the accumulated for the last twelve months remained dropping (-0.5%), since in May the rate was -0.8%. All indicators of the average working time were positive: the monthly indicator increased 0.5%; the year-to-date increased 0.4% and the last twelve months, 0.1%.

The quarterly moving average indicator, when indicating an increase of 0.3% for the work time for the quarters closed between June and May, retakes the ascending route initiated in January/2004, which had been interrupted by May result.

When comparing with the same month of prior year, the number of hours paid in industry grew 2.1%, influenced by a positive performance of 12 among 14 locations and also 12 among 18 businesses surveyed. For the sectors, the main positive impacts came from the activities machinery and equipment (14.6%), manufacturing of transportation means (10.1%) and rubber and plastic (8.7%). In compensation, the largest negative contributions were on account of clothing (-10.2%), metal products (-6.0%) and paper and print shop (-5.3%) industries.

Among regions, still in the June 04/ June 03 comparison, the largest positive influences for the general result came from São Paulo (2.1%), Minas Gerais (4.9%) and North and Center-West region (4.0%). For the São Paulo industry, the largest positive impacts were in the segments machinery and equipment (22.9%), food and beverages (6.9%) and rubber and plastic (10.2%). With respect to the industry in North and Center-West region, the business of food and beverages (8.5%), electro-electronic machines and devices (14.4%) and manufacturing of transportation means (14.9%), were the positive highlights. In opposition, Rio de Janeiro (-5.1%) and Pernambuco (-4.7%) were the only negative influences.

In quarterly bases, the number of hours paid reverts the drop in first quarter (-0.1%) by showing an increase in the second quarter of 1.1%. In this transition, the largest changes came from the following segments: tobacco, which went from 0.8% to 30.7% as a result of changes in the crop period; electro-electronic machines and devices (from 0.5% to 5.9%) and other products from the transformation industry (from -5.2% to 1.4%). In opposition, metal products (from -1.7% to -7.2%) and petroleum refining and alcohol production (from 4.1% to 1.7%) accounted for the largest drops.

Between first and second quarters of current year, 10 among 12 locations surveyed expanded the rate for number of hours paid. The North and Center-West region presented the most significant increase (from 0.0% to 3.8%), while Pernambuco presented the largest drop (from 4.4% to -2.6%). 

From January to June, the number of hours paid in industry grows 0.5%

The number of hours paid in industry for year-to-date January-June presented a slight increase of 0.5%. Ten regions and 11 industrial sectors presented positive results. Among locations, the largest positive impacts were Minas Gerais (4.1%), North and Center-West region (1.9%) and Paraná (1.7%). On the other hand, Rio de Janeiro (-5.1%), Rio Grande do Sul (-1.4%) and Espírito Santo (-3.6%) exercised the largest negative pressures. In sector terms, the most significant positive impacts for total country came from machinery and equipment (13.4%), manufacturing of transportation means (6.4%) and rubber and plastic (5.8%). On the other hand, the main negative contributions came from clothing (-10.8%) and paper and print shop (-5.0%).

Finally, the accumulated index for the last twelve months dropped 0.5%, but such results maintain the ascending route initiated in February (-1.2%). The clothing (-9.7%) business was the negative highlight, while machinery and equipment (8.2%) was the main positive influence. Among the locations surveyed, Rio de Janeiro (-5.5%) presented the largest negative impact, while Paraná (2.5%) positively highlighted.

Payroll increases again, after three months dropping

After three consecutive months presenting negative rates, the industry workers’ payroll increases again in series free of seasonal influences, reaching 0.7% in May and June. For the other indicators, the results were largely positive: 8.4% in monthly index; 8.9% in year-to-date and 3.1% in last twelve months. The second quarter/2004 presented an increase of 8.1% over the same period in 2003. In relation to the average payroll, results continue positive: 6.7% monthly; 8.8% year-to-date and 3.8% in last twelve months.

The quarterly moving average indicator shows that the payroll results, in the beginning of 2004, were higher, on account of inflation decrease and payment of benefits, while the quarters closed in May and June were lower. But even showing a slight reduction between May and June (-0.2%), the actual payroll level is 7.9% higher than the presented in June/2003.

In the monthly comparison (8.4%), all locations and 14 of the 18 businesses presented a payroll increase. São Paulo (9.0%) and Minas Gerais (10.5%) States represented the main positive contributions in total country, while Pernambuco presented a growth rate of lower size (2.4%). The positive impacts on payroll of these states were observed, mainly, in the sectors machinery and equipment (53.4% in São Paulo industry), basic metallurgy (18.6% in Minas Gerais industry) and paper and print shop (43.1% in Pernambuco industry).

For the country as a whole, the most important positive influences in payroll increase were machinery and equipment (30.8%), food and beverages (10.1%) and manufacturing of transportation means (7.4%). On the other hand, the four activities presenting negative rates were: metal products (-10.2%), clothing (-5.7%), textile (-3.0%) and non-metallic minerals (-2.1%).

In a quarterly bases, the total industry presented positive results. However, it is observed a backward movement in the crossing index from the first (9.7%) to the second quarter/2004 (8.1%). Except for the Southeast and South regions, such movement was followed by nine from 14 areas, with highlights for Rio de Janeiro (from 8.4% to 0.5%) and Pernambuco (from 7.4% to 3.5%).

Among sectors, when comparing second against first quarter, 12 business presented lower results, specially mineral extractive and metal products, which went from 21.1% to 9.6% and from 0.9% to -9.5%, respectively.

For year-to-date results, the 8.9% growth in general industry was followed by 15 businesses. The main positive impacts came from machinery and equipment (29.9%), food and beverages (8.7%) and manufacturing of transportation means (8.6%) and negative, from textile (-8.7%), metal products (-4.3%) and clothing (-3.2%). In regional analysis, all locations presented positive variances, with highlights for São Paulo (9.3%) and Minas Gerais (12.4%).

Finally, the accumulated indicator for the last twelve months presents an ascending route, with positive results observed in last three months: 0.8% until April; 2.0% until May and 3.1% until June. Among the areas investigated, only Rio de Janeiro still presents a decrease in payroll value (-1.7%).

In summary, the positive results for total payroll, in the various comparisons, suggest that the earnings recovery is a consequence of a larger dynamism observed in production and the maintenance of price indexes at reduced levels.