Brasília, May 11, 2004 (Agência Brasil) - Salaries paid to workers in industry rose 2.18% in March, in comparison with February. The increase was smaller, 0.85%, when seasonal adjustments are omitted. These data come from the National Confederation of Industry's (CNI) survey of industrial indicators. Industrial salaries rose 6.56% in the first quarter of 2004. Over the 12-month period ending in March, salaries grew 8.65% in the sector.

According to the CNI, the indexes show that workers' income is in the process of recovery. Over the course of a year (March 2003/March 2004), the salary pie expanded in 10 of the months.

The improvement in salaries is a consequence of the reheating of the sector. The survey indicates that real industrial sales grew 3.45% in March, compared with February. This was the largest sales volume since 1992.

For the coordinator of the survey, Renato da Fonseca, the salary recovery may suggest that domestic consumption is resuming. Nevertheless, he emphasizes that it is necessary to stimulate investments in the country. "We are missing the chance to increase domestic consumption."

Despite the salary recovery, the labor market in the industrial sector demonstrated a lackluster revival. Excluding seasonal influences, the number of people employed in the industrial sector in March was 0.53% greater than in February.

In the first quarter of 2004, the growth in industrial jobs was only 0.48% in comparison with the fourth quarter of 2003. Still, it is the second consecutive quarter in which industrial employment grew.

Translator: David Silberstein