In August 2004, the industrial employment indicators were positive and higher than in July. In the series free of seasonal influences, there was a change of 0.9%, between July and August. This index has been positive for four months, a period in which the sector expanded the number of employed persons by 2.6%. Compared to August 2003, the growth was of 3.1% and in the accrued period of January-August, 0.8%. The annual rate, the accrued indicator for the last twelve months, registered no growth (0.0%).

The average quarterly moving index highlighted the recovery trend that started in January, accruing a growth rate of 2.9% between the quarters ended in December o last year and last August.

As for the real payroll, the result for August remained stable compared to July. In the comparisons with 2003, the indexes were positive, being that in the average quarterly moving index, the payroll reached the highest level for the month of August since the start of the series’ history, in 2001. This reflects a recovery trend in the income for workers in the sector.

The recovery in the industrial employment level and the real growth of the payroll reflect the effects of the continuing growth of productive activity throughout 2004. The expansion in the number of industrial sectors with the growth of production is equally noted in terms of the profile of employment indexes that, for both sectors and regions, they demonstrate a more general scenario of positive results.

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

EMPLOYED WAGE-EARNING PERSONNEL

Compared to August 2003, the contingent of workers in the industry maintained a four-month sequence with positive rates and the monthly index of 3.1% was a result of the increase noted in 12 locations and 14 activities. São Paulo (1.9%) and Minas Gerais (5.6%) stood-out as the main positive highlights. In São Paulo, the main responsible items for the positive performance were machines and equipment (24.4%) and food and beverages (8.0%). In Minas Gerais, the highlights were electro-electronic and communications machines and devices (24.9%) and rubber and plastic (39.9%).

Two locations remained with negative indexes: Rio de Janeiro and Pernambuco, both with a decrease of 1.3%. The food and beverages sector is the main responsible factor for the decrease in the number of workers in these states (-16.8% and –6.7%, respectively).

At a national level, still in the monthly comparison, 14 out of 18 surveyed sectors increased the number of employed persons. Machines and equipment was again confirmed as the activity that offered the greatest contribution towards the country’s total industrial employment (16.9%), with means of transport (9.9%) remaining with the second main positive impact. On the other hand, clothing (-6.4%) and metal products (-6.5%) exerted the main negative pressures.

In the accrued January-August period (0.8%), hiring exceeded lay-offs in nine areas and 12 activities. Among the locations, Minas Gerais (3.6%), the North and Midwest (3.5%) and Paraná (3.0%) were noted as the main positive influences in the general calculation and Rio de Janeiro (-3.3%) and Rio Grande do Sul (-0.7%) were the ones that exerted the greatest negative pressure on the general index. Per sectors, machines and equipment (13.4%) and food and beverages (2.4%) were the main positive highlights and clothing (-9.6%) and paper and printing (-6.0%) represented the most significant negative contributions.

NUMBER OF PAID HOURS

In August, the total number of paid hours to industry workers increased 1.0% compared to July, already discounting the seasonal effect. Compared to August 2003, there was an increase of 3.9%. The indicators for broader periods registered increases of 1.2% in the accrued year and 0.2% last twelve accrued months. The average workday also registered a high among all indicators: 0.7% in the monthly indicator, 0.4% in the accrued year and 0.3% in the last twelve accrued months.

Following the stability registered in the previous month, the workday increased again in the passing from July to August (0.2%), according to the average quarterly moving indicator.

In the August 2004/ August 2003 comparison, the number of paid hours in the industry reached the seventh positive rate in a row, increasing 3.9%. This performance was determined by the increase of the workday in 12 out of 14 locations and in 13 out of 18 surveyed areas. In terms of sectors, the greatest impacts were registered in the machines and equipment (17.3%), means of transport (12.6%) and food and beverages (3.2%) activities. On the other hand, the main negative pressures were exerted by the clothing (-7.2%), metal products (-3.0%) and paper and printing (-2.9%) industries.

Also in this comparison, the locations that registered the most significant contributions in the national result were São Paulo (2.9%), Minas Gerais (7.5%) and the North and Midwest region (7.6%). In the industry of São Paulo, the most significant contributions came from machines and equipment (19.9%), food and beverages (7.3%) and means of transport (9.2%). In Minas Gerais’s industry, the highlights were rubber and plastic (65.2%), basic metallurgy (14.3%) and electro-electronic and communications machines and devices (28.4%). In the industry of the North and Midwest region, the greatest positive pressure was exerted by food and beverages (17.5%). On the other hand, the only two negative influences came from the indexes of Rio de Janeiro (-2.7%) and Pernambuco (-0.1%). In these locations, the food and beverages segment exerted the main negative impact, with respective rates of –18.4% and 5.8%.

In the accrued January-August period, the 1.2% increase in the number of paid industry hours resulted from the positive performances in 11 regions and 12 industrial sectors. The locations that were responsible for the greatest positive influences were: Minas Gerais (4.6%), São Paulo (0.8%) and the North and Midwest regions (3.0%). On the other hand, Rio de Janeiro (-4.9%), Espírito Santo (-1.8%) and Rio Grande do Sul (-0.2%) exerted the only negative pressures. Per sector, for the country’s total, the most relevant positive impacts were exerted by machines and equipment (14.8%), means of transport (7.7%) and basic metallurgy (10.3%). On the other hand, clothing (-10.2%) and metal products (-4.9%) accounted for the main negative contributions.

Finally, the accrued index for the last twelve months registered a slight increase of 0.2% in August, giving continuity to the ascending trend that started in February. The machines and equipment (10.7%) and clothing (-10.3%) activities exerted, respectively, the main positive and negative pressures. The locations that accounted for the greatest positive and negative impacts in the general calculation were Minas Gerais (2.7%) and Rio de Janeiro (-5.4%).

PAYROLL

In August, the payroll for industry workers, in the series free of seasonal influences, remained stable (0.0%) compared to the month of July, a result that is practically identical to the one registered between June and July (-0.1%). The average quarterly moving index registered an expansion of 0.3% between the quarters ended in July and August, interrupting a trend of deceleration that started in May. It should be noted that the real payroll reached the highest level for the month of August in this type of indicator since the start of the survey’s series in 2001.

In the other indicators, the industrial payroll’s value continued to register growth: 9.6% compared to August of last year, 9.1% in the accrued year and 5.3% in the last twelve accrued months. Compared to the real average payroll, the three indicators also registered positive indexes: 6.3% in comparison to August of last year, 8.2% in the accrued year and 5.4% in the last twelve accrued months.

Compared to August 2003, the real payroll registered an increase of 9.6%, with growth in all 14 surveyed locations. For the development of this rate, the greatest positive contribution was once again registered by São Paulo (10.3%), mainly influenced by the strong expansion observed in machines and equipment (68.2%) and, to a lesser extent, in means of transport (13.2%). In terms of the rate’s magnitude, the main highlight was Minas Gerais (14.4%), that had the value of its real payroll driven by the increase in basic metallurgy (22.4%), metal products (41.5%) and chemical products (42.0%). Highlights above the global average (9.6%) were: Bahia (10.8%), Rio de Janeiro (10.3%), Espírito Santo (9,9%) and the North and Midwest region (9.8%). Locations below the average included: Paraná (9.2%), Santa Catarina (8.2%), Ceará (6.8%), Rio Grande do Sul (4.8%), Northeast region (6.9%) and Pernambuco (0.1%).

Also in the August 2004/ August 2003 comparison, there was a real increase in the payroll for 15 out of 18 surveyed industrial sectors. The greatest positive influences were observed in machines and equipment (41.6%), means of transport (14.3%), food and beverages (7.5%) and chemical products (9.3%). On the other hand, the three areas that registered a decrease in the value of the real payroll were metal products (-7.0%), clothing (-1.7%) and non-metallic minerals (-1.4%).

In the year’s accrued indicator (9.1%), the numbers were positive for all surveyed areas. It is noted that the growth of the payroll is aligned in a context of a decreasing rhythm of inflation and of a greater dynamism of industrial activity. Also in this comparison, the industries of São Paulo (9.4%) were the ones that exerted the greatest positive pressure on the global rate, mainly influenced by gains registered by machines and equipment (51.8%). Minas Gerais (12.0%) and the North and Midwest regions (10.8%) were the ones that registered the greatest advances, mainly due to increases noted for basic metallurgy (19.5%), in the first, and food and beverages (12.6%), in the second.

Also in the accrued indicator for the year, in terms of sectors, there was an increase in the real value of the payroll for 15 out of 18 surveyed industrial areas. For the development of the 9.1% rate, the most significant contributions came from machines and equipment (32.0%), means of transport (9.2%), food and beverages (8.4%) and chemical products (10.2%). Highlighted decreases only included metal products (-5.2%), textiles (-5.0%) and clothing (-2.8%).

With regards to the real average industry payroll, the year’s accrued indicator (8.2%) registered an expansion in all locations, with indexes varying between the 5.9% that were registered in Paraná and the 12.8% in Espírito Santo. At the sector level, out of the 18 surveyed sectors, only textiles (-3.1%) and tobacco (-8.0%) registered decreases, with machines and equipment (16.5%), the extractive industry (12.8%) and paper and printing (10.6%) registering the most intense advances in the country’s total.

In the analysis of the accrued indicator for the last twelve months, the real payroll registered a significant increase in the growth rhythm for August (5.3%), compared to results for July (4.1%) and June (3.2%). Following the same trend, the real average payroll registered a sensitive improvement in the last three months: June (3.8%), July (4.5%) and August (5.4%).