August 19, 2022
Industry picture: Nearly 10,000 factories closed in Brazil within a decade, IBGE notes |  National Magazine

Industry picture: Nearly 10,000 factories closed in Brazil within a decade, IBGE notes | National Magazine

a IBGE Released, this Thursday (21), a photograph of the Brazilian industry, made over a decade.

The auto industry is one of the sectors that is shrinking. Approximately 23,500 people stopped working in vehicle production from 2011 to 2020. In 2011, the sector represented 12% of Brazilian industry. In 2020, 7.1%, down 4.9%.

Industrial production as a whole accumulated negative numbers across the country. This is what was shown by the IBGE survey released on Thursday (21). Nearly 10,000 industries closed their doors in this period.

“We had a recession that started in 2014 and at the end of the ten-year period we had a pandemic that also helped a lot. In addition, we had a very high interest cost and a decrease in the purchasing power of the population,” explains economist Gilberto Braga.

The scenario had a direct impact on the lives of many workers. Within a decade, a million jobs had disappeared, mainly in high-employment sectors such as apparel, accessories, leather, footwear, and the metals industry. And those who stayed had to live with a lower average wage. It increased from 3.5 salaries to 3.2 salaries.

The participation of the northeastern and southern regions has remained practically stable. The North and Midwest gained space, supported by agribusiness. The Southeast still concentrates more than half of the national industry, but has lost ground.

When you go through an economic crisis, it is the region that loses the most. Just like when you have a moment of expansion, the area is the most growing. At the moment, since there is a period when the industry is generally declining on average, it is shrinking more than it is expanding in a decade, what we have is a loss of strength in the industrial sector,” says Braga.

Research also reveals that The epidemic had different impacts by sector. When I started to In 2020, nearly three thousand factories closed their doorsBut the balance of jobs in the sector in the year was positive. The industries had to boost production to meet the new demands.

The company achieved greater growth as a company in the health sector, working with disinfectants, alcohol 70, alcohol gel, and products in the field of sterilization in general, and expanded in the sale of masks and accessories products to combat the virus crisis. “We have increased the number of employees by about 30%, and it has grown in this period,” says businessman Irlio Oliveira Santos.

Part of the industry’s adherence to government programs to reduce wages and working hours helped preserve jobs. The person in charge of the research explains that the pandemic has different impacts on different sectors.

“When a negative impact comes in like this, as with the pandemic in the industry, you will have sectors that increase employment, hire more and there will be other sectors that will need to issue group leave, you will resort to government programs, emergency work and income benefits, etc. So The industry is quite diverse, but we know that some activities have been at greater risk during the pandemic than others,” explains IBGE’s Director of Structural Analysis, Synthia Santana.