Worst in 6 years: 27% of Brazil’s Companies Plan to Cut Jobs

The projections made by the Brazilian industry for new job offerings in Brazil, in the first quarter of 2006, are the worst since January, 2000.

This information is included in the 158th Survey of Manufacturing Industries, released Wednesday, February 1st, by the Getúlio Vargas Foundation’s Brazilian Economics Institute (IBRE/FGV).

According to the study, 27% of the companies interviewed plan to reduce their current number of employees, while 16% intend to hire new workers. The difference, -11 percentage points, represents the poorest result since January, 2000.

The study also revealed prospects of a slowdown in industrial activity in the first quarter, judging by what the sector plans to order.

38% of the companies expressed their intention to purchase more production inputs on the domestic market, as against 30% that intend to cut back their purchases. In the first quarter of last year, these percentages were 36% and 24%, respectively.

The outlook for orders placed abroad is even more discouraging: 34% of the companies said they plan to buy more abroad, down from the 39% that expressed this intention last year at the same time. Those who plan to buy less, on the other hand, rose from 12% in the first quarter of 2005 to 30% in the present quarter.

When it comes to the prices of their products, 28% of the industrialists interviewed said they intend to raise them, the same percentage as in October.

The percentage of those who plan to reduce their prices decreased from 13% to 11%. This result, according to the IBRE, "suggests that there will be no pressure on wholesale prices in the first quarter."

The survey also shows that the evaluation made by entrepreneurs about business prospects for the next six months is more positive than it was last October, but "it is still far from constituting a wave of optimism with regard to the first half of 2006," the IBRE judges.

Of the 914 companies included in the survey, 50% believe that business will pick up in the coming months, as against 9% that expect it to get worse. The corresponding figures for January, 2005, were 60% and 4%, respectively.

Agência Brasil

Tags:

You May Also Like

No Change in View for US’s Meddling in Latin-American Affairs

Few will find fault with the conclusion that U.S.-Latin American policy has long been ...

Brazilian Beef Exports Grow 18% in 2006. Close to US$ 3 Billion in Sales

Brazilian exports of cattle beef generated US$ 353 million in September, an increase of ...

It’s a Bull’s Market for Brazilian Beef

The number of markets that buy Brazilian beef rose this year from 106 to ...

Brazilian Congress Urges Speedy Creation of Palestinian State

Brazil's National Congress held a solemn session on Thursday, December 4, to observe the ...

Brazil Trade Balance Surplus Falls 64%

The trade balance surplus (exports minus imports) in April was US$ 1.744 billion, according ...

Brazil: One Week Before Elections Rousseff is 10 Points Ahead in Presidency Race

Dilma Rousseff the woman handpicked by Brazilian president Luiz Inácio Lula da Silva to ...

Brazilian Exports Start Year With Fresh Record

Brazil’s exports in January reached a record US$ 9.27 billion. With imports at US$ ...

Bus Accident Kills 4 Brazilians on Way to Venezuela’s World Social Forum

The Brazilian government is doing what it can from the Venezuelan capital to provide ...

Brazilian Cities Get Extra Loans from Inter-American Development Bank

The opening session of the 47th Annual Meeting of the Inter-American Development Bank (IADB), ...

Brazil Dreams of Becoming a Biodiesel World Power

The III Brazil-Germany Working Meeting on Biodiesel, which took place on Friday, July 1st, ...