Industrial Employment Falls In Brazil For The First Time In 18 Months

(MENAFN- The Rio Times) Official data from Brazil's Ministry of Labor and the National Confederation of Industry show a complex picture for the country's industrial sector in April 2025. Industrial employment fell by 0.4% from March to April, marking the first drop in 18 months.

This decline signals a slowdown in the sector, which had previously shown steady growth. The industrial production index rose by only 0.1% in April, and the year-to-date increase stands at 1.4%.

Compared to April 2024, production slipped by 0.3%, ending a ten-month streak of year-on-year gains. Despite these signs of cooling, Brazil's overall job market surprised analysts.

The country created a net 257,528 formal jobs in April, the highest for the month since 2020, according to the General Register of Employed and Unemployed Workers. All major sectors, including industry, contributed to the gains.

The services sector led with over 136,000 new jobs, while industry added more than 35,000. Wages in manufacturing reached a record R$3,284 per month in February, with the average admission salary rising to R$2,251.81 in April.



However, high interest rates-currently at 14.25%-continue to restrain investment and demand. Installed capacity utilization in industry slipped to 77.9%, and output remains 14.4% below its 2011 peak, despite being 3% above pre-pandemic levels.

Structural inefficiencies, expensive credit, and weaker global demand limit further expansion. While Brazil 's industry shows resilience, the sector faces persistent challenges that threaten sustained growth.

The data highlight a labor market that remains robust for now, but underlying industrial weaknesses warrant close attention as the year progresses.

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