Labor productivity in the Brazilian manufacturing industry fell again, although at a slower pace, reveals the National Confederation of Industry (CNI). According to the Industrial Productivity survey, the indicator fell 0.3% in the second quarter, after falling 1.4% in the first quarter of the year.
The indicator expresses the ratio between the volume produced and the number of hours worked. From April to June, industrial production rose 0.9%, but hours worked increased 1.3%. Despite the drop, the CNI considers that the 0.3% decline in labor productivity means stability.
According to the CNI, production maintained its growth rate in the second quarter, while hours worked continued to grow, but at a slower pace than in the previous quarter. This, according to the confederation, indicates the stability of the indicator.
When measuring productivity by the total number of workers, instead of the number of hours, the indicator has better results, with an increase of 0.4% in the second quarter. According to the CNI, this is the best result in this measurement since the second quarter of 2022.
In the CNI’s assessment, the expectation is that productivity will grow in the coming quarters with the end of the training cycles for newly hired workers. Another factor that should improve productivity, reported CNI, are recent measures by the federal government that create better conditions for companies to invest in industrial modernization. The entity cites the financing lines of the Mais Produtiva Industry axis of the Mais Produção Plan and the new accelerated depreciation law, recently regulated.
History
From 2013 to 2023, Brazilian industry productivity fell by 1.2%. This result reflects a 16.5% reduction in hours worked and a greater reduction in the volume produced, of 17.4%. The decline was concentrated in the last five years.
In the first half of the decade, until 2018, industrial productivity accumulated growth of 7.1%. The gain, however, was mitigated by the 7.8% drop in the second half of the decade. According to the CNI, much of the drop was due to the drop in demand and high interest rates, which harmed industry investments.
