The unemployment rate registered in June (9.4%) was the lowest of the new series of the Monthly Employment Survey, initiated by IBGE in March 2002, in the six metropolitan areas of the country (Recife, Salvador, Belo Horizonte, Rio de Janeiro, São Paulo and Porto Alegre). In relation to May 2005 (10.2%), the fall was 0.8 percentage point and, compared to June 2004 (11.7%), the decrease was of 2.3 percentage point.

The activity rate [1] (56.4%) presented a retraction of 0.6 percentage point in relation to May 2005. This result is a consequence of the reduction in the level of unemployment [2].

 

In relation to the previous month, the level of employment [3] remained stable in all the surveyed regions, although this result presented an increase of 0.8 percentage point when compared to June 2004.

 

In the comparison with May, the survey presented stability for all the classes of workers, although in relation to the same period of the previous year, an increase of 6.6% in the total of persons with a formal contract was recorded. The figure represented an increase of 492 thousand workers in the six areas. Still in this comparison, no changes were observed concerning workers without a formal contract, self-employed workers and employees.

The survey still revealed that the average real income of the employed population, estimated in R$ 945.80, presented an increase of 1.5% in the monthly comparison, with increases in all the classes of workers in the labor market.

 

The following graph shows the evolution, from JUNE 2004 to JUNE 2005, of the unemployment rate, for the total of the six metropolitan areas covered by the survey.

 

UNEMPLOYMENT RATE

 

In June 2005, the unemployment rate (9.4%) continued a trend of decrease that began in the previous month. The result can be explained by the reduction in the number of persons searching for a job and because of the stability in the number of employed persons. The metropolitan areas that most influenced this result were the following: Recife (from 12.8%, in May, to 9.6% in June) and Rio de Janeiro (from 8.5% to 6.9%).

 

In the comparison with same month of the previous year, the metropolitan areas of Recife (from 12.8% to 9.6%) Belo Horizonte (from 10.5% to 8.5%), Rio de Janeiro  (from 8.9% to 6.9%), São Paulo (from 13.3% to 10.5%) and Porto Alegre (from 9.5% to 7.1%) presented significant changes.  In the metropolitan area of Salvador, the scenario was one of stability.

 

The following table presents the evolution of the unemployment rate by metropolitan area:

 

Unemployment Rate by Metropolitan Area (%)
Month/Year	TOTAL	Recife	Salvador	Belo Horizonte	Rio de Janeiro	São Paulo	Porto Alegre
jun/03	13.0	14.9	17.9	12.1	9.8	14.5	10.2
jul/03	12.8	14.2	17.6	11.4	9.6	14.5	9.5
aug/03	13.0	15.0	17.6	12.1	9.5	14.9	9.8
sep/03	12.9	15.0	17.6	10.8	9.7	14.8	10.1
oct/03	12.9	14.4	17.0	11.2	9.4	15.0	10.1
nov/03	12.2	14.0	16.4	10.3	8.9	14.0	9.4
dec/03	10.9	12.1	15.7	10.4	8.6	11.8	7.9
jan/04	11.7	12.8	16.2	12.3	8.9	12.9	7.6
feb/04	12.0	12.7	17.1	11.9	8.6	13.6	8.5
mar/04	12.8	12.6	17.1	12.1	9.8	14.6	9.6
apr/04	13.1	14.3	16,6	11.4	10.7	14.5	10.7
may/04	12.2	13.3	16.2	10.9	9.6	13.6	9.7
jun/04	11.7	12.8	14.9	10.5	8.9	13.3	9.5
jul/04	11.2	13.4	14.9	10.7	8.1	12.5	8.9
aug/04	11.4	13.5	16.6	10.2	8.6	12.6	8.5
sep/04	10.9	12.4	15.6	10.2	8.8	11.7	8.7
oct/04	10.5	12.1	15.8	9.6	8.5	11.2	7.6
nov/04	10.6	11.2	15.9	9.2	9.4	11.2	7.8
dec/04	9.6	11.1	15.4	8.5	8.5	9.8	6.6
jan/05	10.2	12.2	15.8	9.8	7.4	11.1	7.0
feb/05	10.6	13.2	15.6	9.9	8.4	11.5	7.1
mar/05	10.8	14.1	15.7	10.7	8.4	11.5	7.9
apr/05	10.8	13.0	17.0	9.5	8.6	11.4	8.0
may/05	10.2	12.8	15.9	8.9	8.5	10.5	7.7
jun/05	9.4	9.6	14.7	8.5	6.9	10.5	7.1

UNEMPLOYED PERSONS [1] (PD)

 

In relation to the previous month, the number of unemployed persons decreased by 8.6% in the six metropolitan areas researched. This result was influenced, mainly, by the reduction in the total of unemployed persons observed in the metropolitan areas of Recife (-28.0%) and Rio de Janeiro (-20.5%).  

 

In the annual comparison (June 05/ June 04), the change of this indicator registered –19.5%, which represents a reduction of 496 thousand persons searching for a job in the six metropolitan areas. This trend can be observed in the reduction in the total of unemployed persons in the metropolitan areas of Recife (-25.3%), Belo Horizonte (-17.6%), Rio de Janeiro  (-24.0%), São Paulo (-20.8%) and Porto Alegre (-24.6%).  In the metropolitan area of Salvador stability was observed.

Among the unemployed, women continue to be the majority. According to the survey, they represented 51.3%, in June 2002, 54.4%, in June 2003, 56.1%, in June 2004, and 57.1% in June 2005.

 

PROFILE OF UNEMPLOYED PERSONS IN JUNE 2005

 

The Monthly Employment Survey - PME showed also the profile of the unemployed according to the age group.  From 15 to 17 years old, they are 8.3%, from 18 to 24 years old, 39.3%, from 25 to 49 years old, 45.4%, and over 50 years old, 6.7%. Among the unemployed, 19.2% were searching for their first job and 25.9% were head of the household.  In relation to the period of search: 22.1% had been searching for a job for a period not above 30 days; 45.6%, for a period from 31 days up to 6 months; 7.3%, for a period from 7 to 11 months; and 25.0%, for a period of at least one year. The number of unemployed persons that had at least the secondary instruction concluded increased from 36.1%, in June 2002, to 46.6% in June 2005.

 

EMPLOYED PERSONS

In June, the number of employed persons, in the six metropolitan areas, was estimated to be 19.8 million. In relation to May 2005, this indicator presented stability. Nevertheless, in the comparison with June of the previous year the change was positive (3.4%), representing an increase of 647 thousand persons employed in the labor market.

 

In the analysis by area, in the monthly comparison, there was stability in all the investigated areas. In relation to the same month of the previous year, there were increases in the metropolitan areas of Recife (3.0%), Salvador (5.1%), Belo Horizonte (4.2%), São Paulo (4.1%) and Porto Alegre (4.3%). In the metropolitan areas of Rio de Janeiro the scenario was one of stability.

 

Considering the level of employment [1] (51.2%), there was stability in the labor market, compared to May 2005, and an increase of 0.8 percentage point in the comparison with the same month of the previous year. In the analysis by area, in the monthly comparison, there was stability in all the surveyed areas. In relation to June 2004, an increase in the metropolitan areas of Salvador (1.6 percentage point), São Paulo (1.2 percentage point) and Porto Alegre (1.2 percentage point) was registered. In the other areas, the scenario was one of stability concerning this estimate.

 

The rate of employment (employed population/economically active population), estimated to be 90.6% in June 2005, recorded an increase of 0.8 percentage point in the monthly comparison. In the annual comparison it presented an increase of 2.3 percentage points.

In June 2005, the survey showed that men represented 56.1% of the employed population and women 43.9%. The population between 25 and 49 years old amounted to 63.8% of the employed persons. The survey revealed also that the percentage of the employed persons with 11 years of age and over was 50.1%.

 

Analysis of the results in relation to the main groups of activity.

 

 

·        Mining and quarrying, manufacturing and distribution of electricity, gas and water, 17.8% of the employed population. In the total of the six areas, in the comparison with the previous month, the total of employed persons in this group presented stability.  In the annual comparison, an increase of 4.5% was registered, approximately 153 thousand persons. Among the areas, compared to May 2005, a significant change only in Belo Horizonte (6.4%) was observed. In the annual analysis change in the total of employed persons was observed only in São Paulo (7.8%), as a consequence of an increase, in one year, of 132 thousand workers in the industry of this state.

 

·        Construction, 7.3% of the employed persons. In the six areas, in the comparison with May, the total of employed persons in construction did not change. In the annual comparison, change of 5.3% was observed. In the monthly analysis by areas, only in the metropolitan area of Porto Alegre change was observed  (14.2%). In the other areas the scenario was of one of stability. In the annual comparison, change was observed only in Recife (23.4%).

 

·        Trade, repair of automotive vehicles, personal and domestic objects and retail fuel trade, 19.4% of the employed population. This activity continued stable in relation to May 2005 as well as in relation to June of the previous year. In the analysis by area, in both comparisons, the scenario was also one of stability in all the surveyed areas.

 

·        Services rendered to enterprises, rents, real estate activities and financial mediation, 13.4% of the employed population.  Stability was observed in the total of the employed persons in relation to the previous month as well as in the comparison with the same month of 2004. In the analysis by areas, in the monthly comparison, change was recorded in the metropolitan area of Porto Alegre (8.9%).

 

·       Education, health, social services public administration, defense and social security   15.9% of the employed population. There were not significant changes, in either comparison, for the six surveyed areas. In the analysis by area, the total of employed persons also continued stable in both comparisons.

 

·      Domestic services, 8.4% of the employed population.  In the comparison with May 2005, for the total of the six areas, no significant changes were observed. However, in comparison with June 2004, the behavior of the last two months was repeated, with an increase of approximately 11.9%.

  

·        Other services (lodging, transportation, urban sanitation and personal services) 17.1% of the employed population. It was observed, for the total of the six areas, a scenario of stability in relation to May 2005.  Nevertheless, in the annual analysis, change of 5.4% in the total of employed persons in this grouping was registered.

 

Analysis of classes of workers in the labor market

 

 ·        Employees WITH a formal contract in the private sector1, 40.4% of the employed population. In relation to May 2005, the total of these workers continued stable. Compared to June 2004 the change reached 6.6%, which means an increase of approximately 492 thousand persons. In the analysis by area, in the monthly comparison, no changes were observed in the surveyed metropolitan areas.  In the comparison with June 2004, changes were registered in the areas of Recife (12.8%), Belo Horizonte (7.8%), São Paulo (9.5%) and Porto Alegre (7.7%).

 

·        Employees WITHOUT a formal contract in the private sector¹, 15.6% of the employed population. This estimate continued stable in both comparisons. In the analysis by area, there was stability.

 

·        Self employed workers, 19.2% of the employed population. There were not changes in the total of the six areas in any comparison. In the analysis by area, in both comparisons, no changes were observed in the surveyed areas.

PERSONS AT WORKING AGE (PIA)

 

In June 2005, the PME estimated in 38.8 millions [1] the total of persons at working age (persons 10 years old and over) in the six metropolitan areas. This estimate did not present change in relation to May 2005. In the comparison with June 2004, the increase was 1.9%, which means an increase of 720 thousand persons at active age.

 

Women represented, in June 2005, the majority of the population at working age (53.6%), and men, 46.4%. By age groups, the population at working age was the following: 9.1% from 10 to 14 years old; 6.0% from 15 to 17 years old; 15.0% from 18 to 24 years old; 44.7% from 25 to 49 years old; and 25.1% among those that were 50 years old and over. The group of persons from 16 to 24 years old, target group of My First Job Program represented in June 2005, 19.0% of the PIA.

 

 

The following table portrays, in percentages, the distribution of the working age, economically active, employed and unemployed population, by gender, according to the metropolitan area.

 

 

Metropolitan Areas	Working-Age Population		Economically- Active Population		Employed Population		Unemployed Population
	Men	Women	Men	Women	Men	Women	Men	Women
6 areas	46.4	53.6	54.9	45.1	56.1	43.9	42.9	57.1
Recife	46.0	54.0	55.2	44.8	56.2	43.8	46.0	54.0
Salvador	46.6	53.4	53.1	46.9	55.2	44.8	40.9	59.1
Belo Horizonte	46.9	53.1	54.3	45.7	55.0	45.0	45.8	54.2
Rio de Janeiro	45.9	54.1	56.0	44.0	57.0	43.0	42.8	57.2
São Paulo	46.6	53.4	54.8	45.2	56.3	43.7	42.3	57.7
Porto Alegre	47.1	52.9	54.5	45.5	55.3	44.7	42.9	57.1

 

 

ECONOMICALLY ACTIVE POPULATION (PEA)

 

The survey presented a totaal of 21.9 million economically active persons, indicating a fll of 0.8% in relation to May 2005. In the comparison with the same month of the same month of the previous year, the scenario was one of stability.

 

The activity rate (proportion of economically active persons in relation to the number of persons of 10 years old and over) was estimated to be 56.4%, with fall of 0.6 percentage point in the month and 0.7 percentage point in relation to June 2004.

 

Men represented, in June 2005, the majority of the economically active population (54.9%), while women represented, 45.1%.

 

By age groups, the result of June was the following: 0.3% from 10 to 14 years old; 2.3%, from 15 to 17 years old; 18.3%, from 18 to 24 years old; 62.0%, from 25 to 49 years old and 17.2%, from 50 years old and over.  The group of young people from 16 to 24 years old, target population of My First Job Program, represented in June 2005, 20.2% of the PEA.

 

Among the areas, in the comparison with May 2005, there was a significant change of the PEA only in Recife (-3.7%).  In the comparison with June of the previous year, a significant increase was observed only in Salvador (4.8%).  In the other areas, there was stability.

 

NON ECONOMICALLY ACTIVE POPULATION (PNEA)

 

The total of the non-economically active population, around 43.6% of the working age population, presented increase of 1.4% in the monthly comparison, which means an increase of 228 thousand persons. In relation to the same month of the previous year, this total increased 3.5%, around 570 thousand persons.  It is worth mentioning the increase of 7.4% in relation to May 2005, in the number of non-active persons that would like to work and were available to do so.

 

AVERAGE REAL INCOME [1]

 

In the month of June, in comparison to the previous month, the survey presented recovery (1.5%) in the average real income usually earned by the employed persons for the total of the six metropolitan areas.  The income was estimated to be R$ 945.80, in June, compared to R$ 931.74 in May. In relation to June 2004, the income was estimated to be R$ 948.50, showing a slight negative change (-0.3%).

Income of categories of employment (monthly comparison)

 

In the total of the six areas, in the monthly comparison, there was recovery of the income of all the classes of workers in the labor market. In the category of employees with a formal contract in the private sector recovery of 1.3% ws observed, with the average income going from R$ 954.81, in May, to R$ 967.10 in June. The category employees without a formal contract in the private sector recorded an increase of 4.9% (passing from R$ 603.81 to R$ 633.30) and the self employed workers a change of 2.0% (passing from R$ 714.49 to R$ 728.70).

 

Income of categories of employment (annual comparison)

 

For the total of the six areas, there was a decrease in the average income of the employees with a formal contract in the private sector (-2.0%), going from R$ 987.09, in June 2004, to R$ 967.10 in June 2005.  In the category employees without a formal contract in the private sector stability was observed. The self-employed workers (-0.9%) presented negative reduction and the average income changed from R$ 735.32 to R$ 728.70.

  

AVERAGE REAL INCOME USUALLY EARNED
Categories of employment	June 2004	May 2005	June 2005	Monthly Change	Annual   Change

 

Employees with a formal contract in the private sector

987.09

954.81

967.10

1.3%

-2.0%

 

Employees without a formal contract in the private sector

633.44

603.81

633.30

4.9%

0.0%

 

Own- account workers

735.32

714.49

728.70

2.0%

-0.9%

 

 

The following table shows the evolution of the real average income usually earned by the employed population by metropolitan area.

 

Average Real Income Usually Earned by Employed Population, by Metropolitan Area
Month/Year	TOTAL	Recife	Salvador	Belo Horizonte	Rio de Janeiro	São Paulo	Porto Alegre
jun/03	952.15	687.05	690.11	844.63	912.90	1,089.44	922.17
jul/03	935.74	663.28	690.33	801.47	908.50	1,068.73	916.31
aug/03	949.69	651.49	734.08	794.27	919.14	1,086.97	953.37
sep/03	927.20	652.03	715.04	805.53	904.27	1,039.86	956.09
oct/03	921.00	627.51	695.37	829.14	872.49	1,047.52	941.70
nov/03	921.84	629.12	707.10	814.22	868.11	1,053.55	938.30
dec/03	911.17	607.25	737.13	798.15	857.09	1,035.86	941.06
jan/04	928.21	624.83	720.21	819.75	844.87	1,069.24	975.13
feb/04	933.22	598.49	726.21	810.19	854.50	1,089.77	934.52
mar/04	946.33	593.61	731.49	821.85	897.75	1,088.26	946.27
apr/04	938.08	595.23	731.30	816.81	909.95	1,066.92	930.34
may/04	931.28	588.87	706.97	798.84	866.29	1,088.66	898.51
jun/04	948.50	633.58	709.39	818.30	868.54	1,106.15	944.37
jul/04	954.52	665.02	725.09	829.37	894.95	1,097.58	970.43
aug/04	940.96	685.80	709.98	843.89	871.29	1,081.40	958.47
sep/04	957.04	685.67	725.20	849.29	901.94	1,099.19	950.27
oct/04	945.39	673.85	716.64	834.05	900.36	1,081.34	935.04
nov/04	946.10	652.38	708.40	824.70	901.84	1,082.35	959.42
dec/04	928.61	635.25	710.72	805.80	889.28	1,060.75	933.35
jan/05	948.63	620.80	701.62	839.39	917.46	1,088.66	929.73
feb/05	957.77	643.77	699.99	842.07	907.51	1,105.28	962.97
mar/05	962.70	623.85	724.59	847.38	902.82	1,119.95	925.60
apr/05	945.84	653.63	713.64	859.08	892.55	1,082.88	912.09
may/05	931.74	633.09	685.90	850.65	864.27	1,079.36	909.78
jun/05	945.80	667.10	701.80	855.80	874.00	1,094.30	925.90

 

The following table shows the changes in the average real income usually earned by the employed population, according to the groups of activity.

 

 

 

AVERAGE REAL INCOME USUALLY EARNED
Groups of economic activity	June 2004	May 2005	June 2005	Monthly Change	Annual Change

Employed Population

948.50

931.74

945.80

1.5%

-0.3%

 

Mining and quarrying, manufacturing and distribution of electricity, gas and water

1,008.47

997.27

1,007.10

1.0%

-0.1%

 

Construction

704.96

696.01

688.10

-1.1%

-2.4%

 

Trade, repair of automotive vehicles, personal and domestic objects and retail fuel trade

793.05

782.91

787.80

0.6%

-0.7%

 

Services rendered to enterprises, rents, real estate activities and financial mediation

1,283.98

1,294.23

1,335.40

3.2%

4.0%

 

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

1,341.07

1,273.85

1,296.80

1.8%

-3.3%

 

Domestic services

328.75

329.13

337.70

2.6%

2.7%

 

Other services (lodging, transportation, urban sanitation and personal services)

841.80

858.52

861.80

0.4%

2.4%

 

 

_________________________

[1] Activity rate – proportion of economically active persons in relation to working age population

 

[2] Level of unemployment - proportion of unemployed persons in relation to working age population

 

[3] Level of employment – proportion of employed persons in relation to working age population.

 

[4] Classified as unemployed for not being employed when the survey was conducted, for being able to work in the week of reference and for having tried to find a job in the period of 30 days before the survey.

 

[5] Proportion of employed persons in relation to working age population.

 

[6] Excluding private household workers, military, public and statutory servants and other employees of the public sector.

 

[7] The estimates of absolute values were calculated incorporating new populational prospects, according to the methodology launched by IBGE in October 2004.

IBGE, Projeção de População do Brasil por Sexo e Idade para o Período de 1980-2050- Revisão 2004- Metodologia e Resultados – Rio de Janeiro 84 p.

https://www.ibge.gov.br/home/estatistica/populacao/estimativa2004/metodologia.pdf

 

[8]For the calculation of the real income, the deflator used for each area is INPC (National Consumer Price Index) for each respective metropolitan area. For the income of the group of six metropolitan areas included in the survey, the deflator is the weighted mean of the price indexes of these areas. The variable used is the population dwelling in the urban region of the metropolitan area.