Labor productivity in the Brazilian manufacturing industry fell by 1.5% in the first quarter of 2022 compared to the last quarter of 2021, according to a study by the National Confederation of Industry (CNI).
On the other hand, the research shows that, with the same basis of comparison, the hours worked grew 2.2% above the increase registered by the volume produced, of 0.8%.
The confederation explained that the resumption of the labor market from 2021, with the advent of the vaccine, created more vacancies in the industrial sector, which reflected in the increase in hours worked due to having more manpower available.
However, conjunctural factors meant that fewer raw materials and inputs reached the factories, which justifies the fact that the increase in working hours in the industry did not result in productivity growth.
“Economies are still recovering from the effects of Covid-19 and are now suffering the impacts of the Ukraine war. In Brazil, the lack or high cost of raw materials has become one of the biggest difficulties in the industry since the second quarter of 2020, given the effects of the pandemic”, said Samantha Cunha, industrial policy manager at CNI.
The accumulated loss of productivity reaches 10% compared to the third quarter of 2020, the last increase recorded by the indicator, moving further away from the level prior to the Covid-19 crisis.
War and Covid-19
Cited as one of the main problems for productivity in the industry, the war in Eastern Europe intensified restrictions on inputs for production, already affected to the detriment of the consequences of the pandemic.
According to the CNI, several production chains were affected by the conflict in Ukraine, such as food, electronics and automobiles. In addition, the confrontation also caused shortages or an increase in the cost of inputs.
“The conflict accentuated the difficulties in obtaining inputs and raw materials, in addition to the increase in prices and logistical difficulties, such as the unavailability of ships, containers and the increase in freight prices”, points out the study.
Another factor that exacerbated supply disruptions in production chains is China’s “zero Covid” policy, which has led the Asian country to adopt lockdowns in the region’s main manufacturing and trade centers.
Finally, the CNI highlights that productivity should recover to the pre-pandemic level, returning to the low-growth trajectory.
“Sustained productivity growth depends on overcoming Brazil’s structural inefficiencies, such as low investment in research and development,” said the confederation.
Source: CNN Brasil
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