The unemployment rate in the six metropolitan areas investigated by the Monthly Employment Survey (Recife, Salvador, Belo Horizonte, Rio de Janeiro, São Paulo and Porto Alegre) remained constant in June (10.4%). The rise of the unemployment rate by 0.2 percentage points in comparison with May (10.2%) does not mean a statistically significant change, according to the methodology of the survey. In relation to the same month last year, when the rate was 9.4%, there was increase. The number of unemployed persons (2,3 million) was stable in relation to May. However, in comparison with June 2005, there was increase of 14.1%, that is, of about 289 thousand persons looking for a job.

 

The survey showed that, in relation to May, there was increase of the activity rate (56.8%) by 0.5 percentage points. This change is a consequence, mainly, of the significant rise of the total number of unemployed persons, observed for the first time this year. However, this bigger number of unemployed persons was not yet enough to promote the decrease of the unemployment rate. From May to June this year, approximately 170 thousand new jobs were created in the six areas surveyed. This represents an increase of the employed population of about 0.9%.

 

It is worth mentioning that the semester average of the employment (proportion of employed persons in relation to the population 10 years old or over) in 2006 (50.7%) did not change in relation to 2005. From January to June 2006, there was relative increase of the employed population (0.7%), but not as much as in the same period last year (1.7%).

 

The graph below shows the evolution of the Average Unemployment Rate in the period May 2005 – June 2006, in the six metropolitan areas investigated by the survey

The survey also showed that, for the fifth consecutive month, the real average income usually earned of the employed population increased. Being estimated as R$ 1,033,50, this indicator changed by 0.5% in relation to May. In one year, the purchasing power of the employed population grew by 6.7%. In the same period, in the six areas surveyed, more 296 thousand persons had a formal job contract signed in the private sector. This figure increased by about 3.7% in relation to June 2005.

 

In the six areas, no group of activity presented significant change in comparison with last May. However, in the annual comparison, the highlight was the performance of the group Services rendered to enterprises, rents, real estate activities and financial mediation, which had an increase of 7.7%.

 

In comparison with May 2006, stability was observed in all the areas. In comparison with June 2005, three metropolitan areas had change in terms of this indicator: Recife (from 0.9 to 15.4%), Rio de Janeiro (from 6.9% to 8.8%) and Porto Alegre (from 7.1% to 8.2%).

Active-age population (PIA) remains stable in comparison with the previous month

 

In June 2006, PME estimated a total of approximately 39.6 million persons at active age (persons 10 years old or over) in the group of six metropolitan areas surveyed. In relation to May , the estimate was stable, but in comparison with June 2005, the increase was 2.0%, that is, 789 thousands persons. In the analysis by sex, it was observed that women accounted, in June 2006, for most of the active-age population (53.4%), whereas men, for 46.6% The population at active age was distributed according to the age, as follows: 9.5% between 10 and 14 years of age; 5.9% between 15 and 17 years of age; 14.7% between 18 and 24 years of age; 44.4% between 25 and 49 year of age and the group 50 years of age or over, 25.4%. Youngsters between 16 and 24 years of age accounted, in June 2006, for 18.7% of the PIA.

 

Economically-active population (PEA) increases by 1.1% in relation to the previous month

 

In June, the number of persons employed was estimated to be 22,5 million, with increase in relation to May (1.1%). In comparison with June 2005, there was increase (2.7%), that is, 600 thousand persons.

 

By area, in comparison with May, there was change of the number of economically-active persons, in the metropolitan area of São Paulo (1.5%). In relation to July 2005, there were changes in the metropolitan areas of Recife (8.8%), Belo Horizonte (5.5%), Rio de Janeiro (2.6%) and Porto Alegre (3.7%). Still in June 2006, men continued to account for most of the economically-active population (54.8%).

 

In comparison with May, there was increase of the activity rate (proportion of economically- active persons in relation to the number of persons 10 years of age or over), from 56.3% to 56.8%. However, no significant change in comparison with June 2005 was observed (56.4%).

 

By area, in comparison with the previous month, the activity rate had a significant change only in the metropolitan area of São Paulo (from 58.2% to 59.1%). In the annual comparison, there were changes in the metropolitan areas of Recife (from 48.1% to 51.8%) and Belo Horizonte (from 56.9% to 58.7%).

 

Employed population (PO) increases by 0.9% in relation to the previous month

In comparison with the previous month, the number of employed persons increased by 0.9%, which represents more than 20,0 million persons in June 2006. In comparison with the same month in the previous year, the employed population grew by 1.6%.

In relation to June 2005, the first sign of increase of the number of employed persons was observed in the metropolitan areas of Belo Horizonte (5.4%) and Porto Alegre (2.5%). In relation to May 2006, there was no significant change in the number of employed persons in any of the metropolitan areas investigated.

In the monthly comparison, the level of employment² (50.9%) had an increase of 0.3 percentage points. In relation to June 2005, there was stability of this estimate. By area, in the monthly comparison, there was stability in all the areas and, in relation to last June, the metropolitan area of Belo Horizonte had expansion of the level of employment (1.5 percentage points).

 

Analysis of results of the main groups of activity

 

Mining and quarrying industry, manufacturing industry ,electricity, gas and water, 17.1% of the employed population. In the six areas, in both comparisons, the number of employed persons in this sector was stable. The same occurred at regional level. 

 

Construction, 7.1% of the employed population. In the six areas, in both comparisons, the number of employed persons was stable. The same occurred at regional level.

 

Trade, repair of automotive vehicles and of personal and domestic objects and retail trade of fuels, 19.6% of the employed population. The number of employment persons in this group remained stable both in relation to May 2006 and in relation to June 2005. The same was registered at regional level, except in the metropolitan are of Recife, which grew by 7.8% in comparison with June last year.

 

Services rendered to enterprises, rents, real estate activities and financial mediation, 14.2% of the employed population.The number of persons employed in this group of activity remained stable in relation to May 2006, and increased by 7.7% in comparison with June 2005. At regional level, no change was registered in this group, in relation to last May. In comparison with June 2005, there was change in the metropolitan areas of Rio de Janeiro (8.5%), São Paulo (8.0%) and Porto Alegre (10.5%).  

 

Education, health, social services, public administration, defense and social  security, 15.9% of the employed population.  In  the six areas, in both comparisons, the number of employed persons in this group was stable. At regional level, over May, there was  stability in all the areas surveyed. In the annual comparison, there was increase in the metropolitan area of Belo Horizonte (10.4%).

 

Domestic services, 8.2% of the employed population. The number of persons employed in this segment remained stable in both comparisons. The same happened at regional level.

 

 Other services (lodging, transportation, urban sanitation and personal services), 17.2% of the employed population. The number of persons employed in this group of activity has not changed, in either comparison.   At regional level, in the monthly comparison, there was stability; in relation to June 2005, the metropolitan are of Belo Horizonte had increase of 11.7%.

Analysis of the classes of workers in the labor market

 

Workers WITH a formal employment contract in the private sector (except domestic workers, military servants, civil servants and others), 41.2% of the employed population. In relation to May 2006, the number of workers in this group was stable. In comparison with last July, there was change of 3.7%, that is, an increase of approximately 296 thousand persons working with a formal contract. In the analysis by area, in terms of the monthly comparison, there was stability in all the areas sureveyed. In relation to June 2005, changes occurred in the metropolitan areas of Belo Horizonte (6.2%) and São Paulo (4.8%).

 

Workers WITHOUT  a formal contract in the private sector (excluding domestic workers military servants, civil servants and others), 14.6% of the employed population. This estimate remained stable in relation to May and also June 2005 (-4.7%). At regional level, in the monthly comparison, the metropolitan area of Salvador had increase of 9.6%. In the annual comparison, there was positive change in the metropolitan area of Salvador (11.9%). In São Paulo, the opposite occurred (-7.8%).

 

Own-account workers, 19.2% of the employed population. The number of workers in this group remained stable in terms of both monthly and annual comparison. At national level there was stability in all the areas in the monthly comparison. In relation to June 2005, increase was observed in the metropolitan area of Porto Alegre (11.6%).

 

AVERAGE REAL INCOME ³

 

In June, the estimated average real income usually earned by workers in the six metropolitan areas surveyed by IBGE was R$1,033,50, an increase of 0.5% in comparison with last May. There was also recovery since June 2005 (6.7%). In relation to May, there was recovery in Recife (3.6%) and in Rio de Janeiro (2.2%). Salvador (-0.4%) and Porto Alegre (-1.6%) faced decrease, and there was stability in all the other areas.

 

In the annual comparison, there was recovery of the purchasing power of workers in all the six areas: Recife (12.9%), Salvador (3.9%), Belo Horizonte (4.3%), Rio de Janeiro (7.4%), São Paulo (8.1%) e Porto Alegre (2.4%).

 

Income of the classes of workers in the MONTHLY comparison

 

In terms of workers with a formal contract in the private sector, there was stability of the average income, estimated as R$ 1,045,10. In the metropolitan areas of Salvador (2.2%), Belo Horizonte (4.1%) and Rio de Janeiro (1.1%), there was recovery of income. In the areas of Recife (-3.0%), São Paulo (-1,0%)  and Porto Alegre (-0.5%),there was decrease. 

 

In terms of workers without a formal contract in the private sector, there was positive change of the average income, estimated as R$ 673,90 in June 2006, versus R$ 634,63 in May 2006,(change of 6.2%).  In the metropolitan areas of Recife (8.3%), Salvador (10.6%), Rio de Janeiro (1.3%) and São Paulo (10.4%), there was stability of this estimate. In Belo Horizonte (-2.1%) and Porto Alegre (-3.5%) there was decrease.

 

In terms of workers of own-account workers, there was negative change of 1.8%, with the average income changing from R$ 822,60 to R$ 807,80. The metropolitan areas of Salvador (-5.5%), Belo Horizonte (-3.5%), São Paulo (-4.3%) and Porto Alegre (-1.4%) had increase. Whereas the metropolitan areas of Recife (2.0%) and Rio de Janeiro (2.6%) had increase of income.

 

Income of the classes of workers in the ANNUAL comparison

 

The income of workers with a formal contract in the private sector, estimated as R$ 1,045,10, recovered 5.5% in relation to June 2005. The workers of the metropolitan areas of Recife (6.1%), Salvador (5.6%), Belo Horizonte (1.3%), Rio de Janeiro (8.9%), São Paulo (5.9%) and Porto Alegre (2.0%) had increase of income.

 

The income of workers without a formal contract in the private sector, recovered 3.9%, changing from R$ 648.70 to R$ 673.90. The workers of the metropolitan areas of Salvador (1.9%), Rio de Janeiro (16.1%) and São Paulo (4.8%) had recovery of income. In the metropolitan areas of Recife (-5.9%) and Belo Horizonte (-4.2%), there was decrease of income.There was stability in Porto Alegre. 

 

 The income of own-account workers recovered 8.2%, from R$ 746.42 to R$ 807.80. There was recovery in the metropolitan areas of: Recife (15.4%), Belo Horizonte (12.9%), Rio de Janeiro (7.4%), São Paulo (6.0%) and Porto Alegre (20.4%).Only the metropolitan area of Salvador had decrease (1.5%).

 

Analysis of the Average Income of works by Group pf Activity

 

In comparison with May 2006, there was:

 

 

increase of the average income usually earned by workers of the following groups of activity: construction (3.5%); services rendered to enterprises, rents, real estate activities and financial mediation (0.4%); domestic services (3.8%) and other services (1.1%).

 

 

decrease of the average income usually earned by workers of the following groups:trade, repair of automotive vehicles and of personal and domestic objects and retail trade of fuels (-1.2%) and education, health, social services, public administration, defense and social security (-1.0%).

 

stability of the average real income of workers in the groups of mining and quarrying industry, manufacturing industry, and distribution of electricity, gas and water.

 

In comparison with July 2005, there was:

 

increase of the real average income usually earned by workers in the groups of activity: mining and quarrying industry,manufacturing industry and distribution of electricity, gas and water (7.3%), construction (12.9%), trade, repair of automotive vehicles and personal and domestic objects and retail trade of fuels (1.0%), services rendered to enterprises, rents, real estate activities and financial mediation (5.7%), education, health, social services, public administration,defense and social security (7.4%), domestic services (8.7%) and other services (3.1%).

 

________________________

¹These people were classified as unemployed because they were not working, were available to work in the week of reference and had tried to find a job in the period of  thirty days preceding the survey.

²(Proportion of employed persons in relation to the active-age population).

³Income usually earned.