In July, the rate had the third consecutive drop, and the occupied population at the six areas surveyed increased by 179 thousand people. In relation to July 2003, actual average earnings (R$ 901.20) grew 2.0%, the first increase for such comparison, since March 2003.

UNOCCUPIED PEOPLE RATE

The drop in July people unoccupied rate (11.2%,) – the third consecutive – was 0.5 percentage point in relation to June. In relation to July 2003 (12.8%) the drop was higher: -1.6 percentage point.

In relation to June, there was a significant variance only at the Metropolitan Region of Rio de Janeiro (from 8.9% to 8.1%), the lowest rate observed in this Metropolitan Region since October 2001. There was stability in Recife (from 12.8% to 13.4%), Salvador (14.9% in both months), Belo Horizonte (from 10.5% to 10.7%) São Paulo (from 13.3% to 12.5%) and Porto Alegre (from 9.5% to 8.9%).

In relation to July 2003, Salvador (from 17.6% to 14.9%), Rio de Janeiro (9.6% to 8.1%) and São Paulo (14.5% to 12.5%), presented significant variances. There was stability in Recife (from 14.2% to 13.4%), Belo Horizonte (from 11.4% to 10.7%) and Porto Alegre (from 9.5% to 8.9%).

PEOPLE UNOCCUPIED (PU)

In July 2004, there were 2.4 million people unoccupied at the six regions surveyed by the Monthly Employment Survey. There was a drop — the third consecutive — of 4.1% in relation to June (less 103 thousand people unoccupied), in function of Rio de Janeiro (-8.6%), São Paulo (-5.8%) and Porto Alegre (-6.5%).

In annual comparison, there was a more significant drop (-10.1%), mainly due to Salvador (-14.2%), Rio de Janeiro (-13.9%) and São Paulo (-11.1%) results.

PEOPLE OCCUPIED (PO)

In July 2004 there was 19.1 million people occupied at the six regions surveyed, an increase of 0.9% in relation to June and 4.3% (786 thousand more people working) in relation to July 2003. Men represented 56.5% of occupied people and women, 43.5%.

The occupation level (proportion of people occupied in relation to people in active age) was stable in relation to June and had a significant variance in relation to July 2003 (1.1% percentage point).

For age groups, 0.5% of the occupied people were from 10 to 14 years old; 2.1%, from 15 to 17 years old; 16.7%, from 18 to 24 years old; 62.8%, from 25 to 49 years old and 17.9% for 50 years old or above. The group from 16 to 24 years old, target of First Employment Program, represented 18.5% of PO, in July 2004.

Almost 50% of workers at the six regions surveyed had at least the medium education level completed. The proportion of workers having 11 or more years education among the occupied people has been increasing: in July 2002 it was 46.2%; in July 2003, 46.6% and, in July of current year, 48.7%.

The survey estimated at 55.7% the proportion of people working in undertakings with 11 or more employees. In undertakings with 6 to 10 people occupied, the proportion was 6.7%, while in undertakings up to 5 people occupied, the proportion was 37.6%.

In July 2004, 2.6% of people occupied had been working for less than 30 days; 20.1%, from 31 days to less than 1 year; 10.3%, from 1 year to less than 2 years and 66.9%, for two years or more.

OCCUPATION PER GROUPS OF BUSINESS

Extractive, transformation and distribution of electricity, gas and water industry (17.8% of PO.

In relation to June, there was stability in total six areas and in each of them. In relation to July 2003, there were increases in total six areas (5.4%) and in Salvador (19.8%), São Paulo (7.2%) and Porto Alegre (7.2%).

Construction (7.0% PO)

Either in relation to June 2004 (-1.9%) or to July 2003 (-3.8%), variances for total six areas were not statistically significant. Only Rio de Janeiro presented a variance: a drop of 8.9% in monthly comparison. In relation to July 2003, there was stability in almost all areas, except for Recife (-19.7) and Rio de Janeiro (-11.1%).

Trade (19.7% of PO)

In monthly comparison, either for total six areas or for each one of them, the situation was stable.

In relation to July 2003 there was stability in total six regions (3.1%). Although significant, the increase noted in Belo Horizonte Metropolitan Region (14.8%) was not sufficient to compensate Recife (-3.3%) and Porto Alegre (-5.4%) results.

Services provided to companies, rents, real estate business and financial intermediation (13.9% of PO)

In total six areas there was stability in relation to June 2004 (1.2%). Compared to July 2003, there was an increase of 8.7%, or 211 thousand more people occupied in this group.

In monthly comparison, there was stability in the six Metropolitan Regions, but when comparing to July 2003 there was increases in Salvador (13.3%) and Rio de Janeiro (13.7%). The other regions presented stability.

Education, health, social services, public administration, defense and social security

(16.2% of PO) There was stability in relation to June 2004 (1.3%) in total six areas. In annual comparison, there was an increase of 6.5% for people occupied in this group, strongly influenced by São Paulo, where the increase was 10.4%. In other regions there was stability.

Domestic services (7.7% of PO)

In total six regions, for monthly (0.6%) and annual comparisons (4.3%), the variances observed were not statistically significant. There was also stability in both comparisons for each one of the six regions.

Other services (dwelling, transportation, urban cleaning and personal services) (17.0% of PO)

In total six areas, the increase observed (2.5%) in relation to last month was not statistically significant. In comparison to July 2003 the variance was 4.8%, as a result of the increases in people occupied for this group in Rio de Janeiro (7.8%) and Porto Alegre (12.3%) regions. The other areas presented stability in this comparison.

OCCUPATION AS INSERTION TO THE WORK MARKET

Private sector employees WITH workers’ record book signed¹

(38.9% of PO) In relation to June 2004 (0.4%) to total six areas, there was not a significant change in people occupied so inserted in work market. But compared to July 2003, there was an increase of 2.4% in number of workers with workers' record book signed.

Compared to June 2004, no Metropolitan Region presented a significant variance. In comparison to July 2003, only Porto Alegre presented an increase (8.3%).

Private sector employees WITHOUT workers’ record book¹

(15.9% of PO) There was stability in monthly comparison for total six regions. In relation to July of last year, there was an increase of 9.6% in total workers without workers’ record book signed. Such result was due to increases observed in Belo Horizonte (14.2%) and São Paulo (17.5%).

Independent workers

(20.1%, of PO) In total six areas there was an increase, either in relation to June 2004 (2.7%) or July 2003 (3.7%). In regional scope’s monthly comparison, the situation only failed stability in Rio de Janeiro (5.9%).

In relation to July 2003, only two areas did not present stability: Salvador (14.8%), where this forecast has been confirming since the end of last year, and Belo Horizonte (10.9%), where there was an increase for the second consecutive month.

ACTUAL AVERAGE EARNINGS²

Estimated in R$ 901.20, the actual average earnings of people occupied, in total six areas, had its first increase in annual comparison since March 2003. Regionally, there were increases in Recife (0.3%), Salvador (5.0%), Belo Horizonte (3.5%), São Paulo (2.7%) and Porto Alegre, which presented the best regional result (5.9%). Only in Rio de Janeiro there was a drop (-1.5%) in actual average earnings, always as annual comparison.

In relation to June 2004, there was an increase of 0.6% in average earnings for the six regions, and also in Recife (5.0%), Salvador (2.2%), Rio de Janeiro (3.0%), Belo Horizonte (1.4%) and Porto Alegre (2.8%). Only São Paulo presented an increase in earnings (-0.8%).

For private sector employees with workers’ record book signed, earnings (R$ 935.20) maintained stable (0.3%) in monthly comparison and increased 2.9% as compared to July 2003.

For private sector employees without workers’ record book signed, earnings (R$ 572.90) dropped 4.2% in monthly comparison and increased 1.1% in annual comparison .

Estimated in R$ 714.70, independent workers’ earnings grew 2.9% in monthly comparison and dropped 2.4% in relation to July 2003.

ECONOMICALLY ACTIVE PEOPLE (EAP)

In relation to June, estimate of number of economically active people (21.5 million) indicated stability. In comparison to July 2003 there was an increase of 2.4% (approximately 514 thousand more people directed to the work market). The activity rate (EAP in relation to number of people 10 years old or above) maintained stable (57.2%) either as compared to last month or in relation to July 2003.

Age distribution of the economically active people showed that: 0.5% were in the range of 10 to 14 years old; 2.7%, from 15 to 17 years old; 19.2%, from 18 to 24 years old; 61.0%, from 25 to 49 years old and 16.6% for 50 years old or above. The youth group from 16 to 24 years old, target population of First Employment Program, represented 21.5% of EAP in July 2004.

In relation to July 2003, EAP grew in Belo Horizonte (5.9%), São Paulo (2.9%) and Porto Alegre (3.3%).

1

Excluding domestic worker, military, government or statutory employee and other public sector employees.

2

Earnings regularly received