São Paulo - The index of new hires by firms in the São Paulo metropolitan area continued to grow in July, even though the pace was slower than during the three previous months. The employment level rose 0.4%, which represents an addition of 32 thousand people to the contingent of employed workers, who now total 8.127 million. In July the increase amounted to 1.3% (107 thousand new positions), while hiring in May rose 2% (157 thousand).

The service sector, which hired 73 thousand workers, was the only one to maintain the upward trend in job offers. The total number of workers employed in this sector increased from 4.234 million to 4.307 million. In the commercial sector, 35 thousand job positions were eliminated. In industry a thousand jobs were lost, but this is considered a stable figure, since there are still positions to be filled, according to the research coordinator of the Seade Foundation, Alexandre Loloian.

The data are drawn from a study released yesterday (25) by the Inter-Union Department of Statistics and Socio-Economic Studies (Dieese) and the State System of Data Analysis Foundation (Seade). According to the technical director of the Dieese, Clemente Ganz Lúcio, even though the rate of increase in job offerings is less intense, the unemployment rate should continue to fall in coming months. He said that the economy usually heats up in the second half of the year. In July the unemployment rate was 18.5%, the lowest since December, 2002.

The survey of employment and unemployment shows that 245 thousand jobs were created in the past 12 months, surpassing the number of people, 156 thousand, who entered the job market. According to Ganz, for the economy to achieve sustained growth, with a high level of job creation and a strong reduction in the unemployment rate, it will be necessary to increase investments in production. These investments currently correspond to around 18% of the Gross Domestic Product (GDP).

Agência Brasil
Reporter: Marli Moreira
Translator: David Silberstein
08/26/2004