In January 2006, industrial employment remained stable in relation to December figures (0.0%) after three consecutive months of negative results (for a seasonally adjusted series). In comparison with January 2005, decrease of 1.3% can be observed, and the continuation of a series of five negative rates. This way, the index accumulated in the last twelve months remained on a downward trend, having changed from 1.1% in December to 0.7% in January this year.

The stability of industrial employment in the beginning of this year, after three months of negative rates during which it accumulated decrease of 1.2%, maintained the downward trend of 1.2% of the quarterly moving average, with change of –0.4% in the quarters ended in December and January.

In the comparison January 2006/January 2005, the decrease of 1.3% contributed to the fall observed in the last quarter of 2005 (-0.8%), in comparison with the same period in 2004. In the formation of the overall index, Rio Grande do Sul (-9.4%) accounted, once more, for the main negative contribution due to the fall of 12 subsectors, especially footwear and leather articles (-23.4%). Also relevant were the contributions from the Northeast region (-3.7%) and Paraná (-3.4%), which were in second and third places in terms of negative impacts on the national index. In the Northeast industry, among the 10 falling subsectors, food products and beverages (-7.1%) had the main negative rate. In Paraná, the employment index decreased in 11 subsectors; the main negative result in this case came from wood (-22.3%). On the other hand, the Northeast and Central West regions (5.0%) represented the principal positive contribution, due to rises in 12 subsectors. Minas Gerais (2.1%) was in second place, with increase in 9 subsectors . In both localities the subsector food products and beverages was the main contributor, with rates of 14.7% in the Northeast and 22.7% in the Central West region.

Still regarding the monthly comparison, in the country, 12 of the 18 subsectors had negative indexes, being the main influences to the overall result footwear and leather articles (-14.7%), machinery and equipment (-9.3%) and wood (-15.6%). On the other hand, the positive performance of food products and beverages (8.0%) and, to a lower extent, transportation (3.7%) is worth being mentioned.

The annualized rate, measured by the indicator accumulated in the last twelve months, has been on a deceleration process for eight consecutive months, having reached 0.7% in January.

Number of hours paid fell by 0.7%

In January, the number of hours paid to industry workers decreased by 0.7% in relation to December, in the seasonally adjusted series; the indicator accumulated in the last twelve months changed by 0.5%. The average number of working hours grew by 0.6% in terms of the monthly index and there was negative change of the indicator accumulated in the last twelve months (-0.2%). The quarterly moving average indicator remained stable between January and December, in spite of the second consecutive fall of the month/previous month indicator.

In terms of the monthly index, the number of hours paid decreased by 0.7% due to the negative performance of ten of the 14 areas and in 11 of the 18 subsectors surveyed. In the analysis by subsector, the main negative influences came from wood (-17.5%), machinery and equipment (-9.1%) and footwear and leather articles (-8.7%). On the other hand, food products and beverages (7.2%) and electric machines, electronic and communication equipment (11.2%) were the main positive impacts.

Still considering the monthly indicator, the areas with the major negative contributions to the national result were Rio Grande do Sul (-8.4%), Paraná (-6.0%) and the Northeast region (-3.7%). In the Rio Grande do Sul industry, 14 of the 18 subsectors surveyed faced reduction of the number of hours paid, being the highlights footwear and leather articles (-13.5%), machinery and equipment (-11.2%) and other products from manufacturing industry (-11.2%). In Paraná, the highlights among the 13 segments with negative results were wood (-27.2%) and apparel (-13.4%). The food products and beverages industry (-6.4%) was the main negative impact in the Northeast region. On the other hand, the two major positive influences came from São Paulo and the Northeast and Central West regions (5.1%), where the participation of the subsector food products and beverages was specially relevant in some areas and had rates of 19.3% and 13.8%, respectively.

The index accumulated in the last twelve months (0.5%) remained on the descending trend started in June 2005 (2.6%).

Real average payroll increased by 5.3%

In January 2006, the real average payroll of industry workers, in the seasonally adjusted series, grew by 5.3% in comparison with the previous month. This is explained, above all, by the payment of benefits to workers from the mining and quarrying industry (23.7%), whereas in the manufacturing industry, the increase was 3.7%.

The result of general industry (5.3%) extremely higher than that observed between November and December (-1.9%), was opposed to the series of four negative results, when there was accumulated loss of 5.3%. This way, the quarterly moving average indicator increased 0.9% in the quarters ended in December and in January, interrupting the deceleration trend started in October 2005.

Concerning the other indicators, the results were: change of 0.2% in the real average payroll compared to the January figure, and increase of 2.9% of the indicator accumulated in the last twelve months.

In the comparison January 06/ January 05, the index of –0.2% reflected falls in 5 of the 14 localities surveyed. The main contribution came from Rio Grande do Sul (-11.1%), due, mainly, to the index observed in footwear and leather articles (-27.0%) and in paper and printing (-34.2%). It is also worth mentioning the contribution from São Paulo (-1.3%), because of machinery and equipment (-23.9%) and transportation (-3.0%), and from Paraná (-5.3%), due, above all, to food products and beverages (-14.1%) and wood (-21.8%). Among the localities with positive results, the highlights are: Minas Gerais (7.7%), as a result of the salary rises in the subsector transportation (21.9%) and metallurgy (10.8%) and Rio de Janeiro (9.0%), mainly due to mining and quarrying industry (61.1%) as a consequence of the paying of workers’ vacation period and 13^th salary.

Still in this type of comparison, considering subsectors, there was reduction of the real average payroll in 10 of the 18 industrial subsectors surveyed. The major influences were machinery and equipment (-14.9%), footwear and leather articles (-16.8%) and paper and printing (-6.1%). The positive results, on the other hand, were those of chemical products (10.3%), mining and quarrying industry (21.8%) and food products and beverages (5.6%).

The indicator accumulated in the last twelve months grew by 2.9% in terms of the real average payroll, a result lower than that of December (3.3%).