São Paulo, February 13, 2004 (Agência Brasil - ABr) - A total of 2,123 jobs were created by industries in São Paulo in January, according to a survey by the Federation of Industries of the State of São Paulo (Fiesp), indicating a 0.14% increase in the employment level. This represents the best result in January for the last five years.
The figures point to a tendency for a recovery in industry, which ended 2003 with 1,351 fewer jobs than in 2002. Exports guaranteed positive results in the sectors of lamp bulbs and electric light fixtures, forged metal, cocoa products, candy, and frozen and deep-frozen food items. There was also an increase in the railroad equipment sector, after 15 years of paralysis.
Among the sectors in which the largest number of jobs were lost are flour products and cookies, sweets, and preserves. These industrial branches traditionally hire temporary workers to meet the Christmas demand. The firings, which usually occur in mid-December, were postponed to January as the result of a delay in commercial activity.
Despite the positive result in January, industry remains cautious in São Paulo. Cláudio Vaz, director of the Fiesp Department of Economic Research and Studies, affirms that the replenishment of inventories and real resumption of hiring will only occur when the domestic market expands, which depends upon lower interest rates - in January, the Monetary Policy Committee (Copom) chose to maintain the prime rate at 16.5%. "If the Copom had lowered interest rates, it would have been a sign from the government pointing to growth on the domestic market. As this didn't happen, we await a new sign," he affirms.
According to Vaz, who is a candidate for president of the Fiesp, entrepreneurs would like the next interest rate cut to be 1.5%. "By lowering interest rates, the government conveys firmness to economic actors, who begin to plan growth," Vaz considers. He assures that industry wants no adventures, only that the government take advantage of the favorable moment to "test limits in a responsible manner." "It is necessary to open the door a little, without fear. We observe that there are financiers interested in Brazil for lower returns than what we are paying," he affirms.
If the Copom resumes the tendency to cut interest rates - yesterday the Minister of Finance, Antônio Palocci, announced that he intends to end the year with a prime rate of around 12% - Vaz believes that industry in São Paulo can open 35 thousand new job positions by the end of 2004. In the worst case scenario, assuming no heating-up of the domestic market, exports alone should guarantee the creation of at least 15 thousand job openings in São Paulo's industries. (DAS)
