In July, the industrial employment indexes were positive in the several comparisons. In the seasonally adjusted series, there was a change of 0.2% between July and June. This index has been positive for the last three months, when the segment has grown 1.7% in terms of the overall number of employed persons. In the comparison with July 2003, the increase was of 2.3%, the highest figure since the beginning of the series, in January 2002. In the cumulative index, the increase was of 0.5%. Analyzing the evolution of the quarterly moving average indicator, employment keeps the upward trend, cumulating a growth of 2.5% between the quarters closed in July 2004 and December 2003.

Concerning the real payroll, July's figure kept stable in relation to June. In the comparisons with 2003, the indexes were positive, reflecting an income recovery trend of the segment's employees.

All these data are part of the Monthly Survey of Industrial Employment and Wages (PIMES).

In comparison with July 2003, the rate of 2.3% was a consequence of the increase of the level of employment in 12 areas and in 14 activities. By areas, the indexes for the South Region (3.4%), São Paulo (1.5%) and Minas Gerais (4.5%) were on the spot. The main responsible for the positive performances of those two areas were, respectively, machinery and equipment (22.5%) and electric-electronic and communication machinery and apparatus (23.0%).

Nationally, the segment's highlights were machinery and equipment (15.8%) and food and beverages (3%) which stood out as the main positive influences. It is important to mention the increase of hirings on the tobacco activity (97.2%) for this year's harvest.  It was higher than 2003's harvest, which ended in June as a consequence of weather issues.

Among the industries with negative impact on the overall index, it is important to mention wearing apparel (-7.7%) and fabricated metal products (-7.6%), for the country overall. By area, two recorded decrease in this kind of comparison: Rio de Janeiro (-3.0%) and Pernambuco (-4.6%), mostly influenced by figures of food and beverages (-15.8% and -11.8%, respectively).

It was noticed an increase of 0.5% in the contingent of employees in the cumulative period of January-July. Among the seven areas that contributed positively to this figure, the spot was over Minas Gerais (3.3%), the North and Central-West Regions (3.1%) and Paraná (2.8%). On the other hand, Rio de Janeiro (-3.4%) hold the position of area that had the major negative influence on the overall, followed by Rio Grande do Sul (-1.2%) and Espírito Santo (-3.9%).

The number of employees increased in 12 activities and the segment of machinery and equipment (13%) stood out as the major positive impact, followed by food and beverages (2.3%) and means of transportation(4.4%). Negatively, the major highlight was wearing apparel (-10.1%), followed by paper and press (-6.3%).

NUMBER OF HOURS PAID

In July, the number of hours paid to industrial workers dropped 13% in relation to June, seasonally adjusted. This result broke two positive rates in a row, when the cumulative increase was of 1.2%. In contrast with July 2003, the increase was of 2.2%. Concerning the indicators for longer periods of time, the figures were: 0.8% in the cumulative of the year and -0.2% in the cumulative of the last 12 months. In relation to the average working hours, all figures were positive: 0.2% in the monthly indicator; 0.3% in the cumulative of the year; 0.1% in the cumulative of the last 12 months.

According to the quarterly moving average indicator, the total of hours paid was stable (0.0%) in the quarters closed last July and June.

In the July 04/ July 03 comparison, the indicator of number of hours paid in the industrial segment presented an increase of 2.2%, reflecting the positive performance in 12 out of the 14 areas and 13 out of the 18 segments surveyed. By sector, the major positive influences were  machinery and equipment (16.8%), means of transportation (10.4%) and electric-electronic machinery and apparatus (9.6%). On the other hand, the negative contributions were wearing apparel (-9,1%), metal products (-7.4%) and paper and press (-5.7%). By area, the places responsible for the major positive influences were: São Paulo (1.7%), Minas Gerais (4.3%), the North and Central-West Regions (4.8%) and Rio Grande do Sul (2.6%). On the other hand, the major negative influence was from Rio de Janeiro (-4.9%). In São Paulo's industry, the segments of machinery and equipment (21.7%), food and beverages (5.3%) and means of transportation (7.5%) were the positive highlights. As to Minas Gerais' industry, the positive highlights were rubber and plastic (75.4%), electric-electronic machinery and house appliances ( (23.9%) and basic metals (11.2%). In the North and Central-West Regions and in Rio Grande do Sul, the industries of food and beverages (12.5%) and tobacco (155.4%) represented, respectively, the major positive impacts.

In the cumulative index of the year, the increase of 0.8% in hours paid was a result of the positive figures in 10 areas and 12 industrial segments. Among the surveyed areas, the major positive impacts were Minas Gerais (4.2%), São Paulo (0.5%) and the North and Central-West (2.5%). Conversely, Rio de Janeiro (-4.8%), Rio Grande do Sul (-0.8%) and Espírito Santo (-2.9%) were responsible by the major negative impacts. By sector, the major positive influences were  machinery and equipment (14.6%), means of transportation (7%) and basic metals (10.2%). On the other hand, the main negative impacts were wearing apparel (-10.5%) and paper and press (-5%).

The cumulative index of the last 12 months recorded, in July, a decrease of 0.2%, a slightly higher figure than that of June (-0.5%). By sector, the major negative impact was wearing apparel (-10.1%), and the positive impact was machinery and equipment (9.6%). Among areas, the negative highlight was Rio de Janeiro (-5.4%) and the positive, Minas Gerais (2.1%).

At last, the indicators of number of hours paid were in line with the employment performance. It is important to mention that, after an advance in the first quarter, the quarterly moving average indicator for hours paid showed stability over the last 12 months. On the other hand, this same index presents an upward trend for the employed persons only from the second quarter on. This suggests that the effects of the major pace of the industrial activity on the labor market were felt, at first, through the increase in the working hours, and later in the contingent of employees.

PAYROLL

After the increase of 0.7% in June, the employees' real payroll in the industrial segment kept stable (0%) in July, seasonally adjusted. The quarterly moving average index kept above those of the previous two years, but smaller than the level seen in the beginning of 2001, which shows that the payroll of the industry is the highest over the last three years.

However, in contrast with 2003, the industry payroll posts real gain: 8.3% in relation to July 2003; 9% in the cumulative of the year and 4.1% in the cumulative of the last 12 months. In relation to the average payroll, all indicators kept positive figures: 5.8% monthly; 8.5% in the cumulative index of the year and 4.5% in the cumulative index of the last 12 months.

In the comparison with July 2003, there are advances in real terms in the real payroll in all 14 surveyed areas. Once more, São Paulo's industries (6.3%) had the contribution of major impact on the formation of the global rate of 8.3%, mostly affected by the increase of machinery and equipment (34.9%). In relation to the growth increase, the highlight is Rio de Janeiro (29.9%), due to the abnormal advance on mining and quarrying industries (213.3%), which paid bonuses and profit-sharing. In this comparison, by sector, 14 out of the 18 surveyed areas in the country recorded real gains in the payroll. The expansions with major impacts on the global rate were machinery and equipment (23.7%), mining and quarrying industry (52.9%), food and beverages (7.3%) and means of transportation (7.8%). In contrast, among the four segments that reduced the real payroll, metal products(%-8.8) and paper and press (-3.7%) stood out.

In the cumulative index of the year, all surveyed areas rose the real payroll overall of their employees. The biggest real gains were in Minas Gerais (11.8%) and in the North and Central-West Regions (11%). In this kind of contrast, the main positive contributions to the formation of global rate came from São Paulo's industry (9.2%), mainly affected by the gains of machinery and equipment (49.5%). In the country, there was an expansion in the payroll of workers in 15 out of the 18 analyzed activities. In the formation of the 9% overall rate, the major positive influences were: machinery and equipment (30.9%), food and beverages (8.6%), means of transportation (8.5%) and chemicals (10.4%). The only segments that shrank were fabricated metal products (-5%), textiles (-6.5%) and wearing apparel (-3.1%).

In the cumulative index of the year, concerning the average real payroll of the industry, there are gains in all areas and in 16 out of the 18 surveyed segments. By area, the expansions ranged between the 6.2% recorded in Paraná and the 14.1% in Espírito Santo, while by sector, the highest growths in the country came from machinery and equipment (15.9%) and mining and quarrying industries (13.6%).

From June to July, the cumulative index of the last 12 months kept the expansion pace both for the real payroll overall, from 3.2% to 4.1%, and for the average real payroll, from 3.8% to 4.5%.