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Wages and Jobs Are Up in the Brazilian Industry

The actual payroll of industry workers in Brazil has increased by 1.3% in July compared with the month of June. In the comparison with July 2007, the expansion was 6.9%. The survey was disclosed September 9 by Brazil's IBGE (Brazilian Institute of Geography and Statistics).

Industry wage increase, which reached 7.4% in the state of São Paulo, was the main contributing factor to the good result. Wage increase in the industrial sector in São Paulo was mostly driven by the segments of chemicals (25.9%) and means of transportation (10.3%).

In all of the regions surveyed, the highest growth rates were recorded in the segments of means of transportation (11.9%), chemicals (16.6%), machinery and equipment (8.3%) and non-metallic minerals (18.2%).

The highest wage reductions, in July, were recorded in the segments of paper and printing industry (-3.6%), shoes and leather items (-4.3%) and textiles (-2.9%).

Industrial Jobs

Employment level in the Brazilian industrial sector has risen for the second consecutive month, having posted growth of 0.7% in July, compared with the previous month, according to the IBGE. The survey shows that the variation was the highest since May 2004, when the expansion rate was 1%.

According to the institute, between July 2007 and July 2008, there was an increase in number of job positions in 13 out of 18 sectors surveyed, the highlights being the sectors of machinery and equipment (12.3%), means of transportation (9.6%), machines, electric and electronic, and communications devices (11.6%) and chemicals (11.1%).

Out of 14 regions surveyed, 11 have recorded growth in number of employment positions. The best performances were those of the state of Minas Gerais, with growth of 6.6% in job generation, compared with July last year, followed by the state of São Paulo (4.3%) and the North and Midwest Regions (2.8%).

On the other hand, there were reductions in the number of workers in the states of Pernambuco (-4.4%), Santa Catarina (-1.1%) and the Northeast Region (-0.3%).

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