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:

Ads

You May Also Like

Brazil Brings World to Rio to Fight Child Prostitution

Nearly 3,000 people from five continents, 300 of whom are adolescents are being expected ...

The Amazon Is Ours to Protect. Brazil Cannot Follow the US Bad Example.

In 1980, the newspaper Jornal de Brasília published an article entitled "The Green Alaska." ...

Brazil’s Romário in ‘Six Chickens and a Raging Bull’

Fluminense’s president, David Fischel, criticized football star Romário for attacking a fan after a ...

The Arab Zest in Joí£o Bosco’s Brazilian Sounds

What does Brazilian music have to do with Arab rhythms? The answer: a lot ...

Brazil’s Vaccine for Foot and Mouth Disease Is Effective, Says International Lab

The vaccine used in Brazil to immunize cattle against hoof and mouth disease protects ...

Africa Vows to Make Brazil’s WSF the Continent’s Biggest Event

The internationalization of the World Social Forum (WSF) will be redoubled in 2007, when ...

Brazil Resigned to Lose World Leadership in Beef, After Cattle Disease

The presence of hoof and mouth disease in a cattle herd in the state ...

While Rich Cut Social Benefits We’re Investing More, Says Brazil’s Finance Minister

Brazil’s Minister of Finance, Guido Mantega, informed that the Brazilian government will raise its ...

Brazilians Don’t Seem to Care

The lack of a political response is disappointing because it shows the U.S. that ...

Chinese Decision to Strengthen Yuan Helps Brazil

Latin American stocks endured a mixed session, although gains from the heavily weighted Brazilian ...