Productivity in the industry has reached a lower level since the beginning of the pandemic, says CNI

Labor productivity in the manufacturing industry dropped 1.3% in the third quarter of the year, compared to the previous quarter, in the seasonally adjusted series. The data is part of the Productivity in Industry study, released this Friday (3rd), by the National Confederation of Industry (CNI).

Measured as the volume produced divided by the hours worked in production, productivity thus returns to the lowest level in the series since the beginning of the covid-19 pandemic. In the same comparison between the quarters, the volume produced fell by 1.9%, while hours worked had a smaller decrease, of 0.6%.

According to the CNI study, the indicator has been falling since the last quarter of 2020. If compared to the third quarter of 2020, when the last increase in the indicator was registered, the accumulated loss reaches 7.6%.

“With this, productivity returns to the level of the second quarter of 2020, a serious moment of the crisis caused by the pandemic, soon after its beginning in Brazil”, says the entity.

These consecutive drops in the productivity indicator in the manufacturing industry reflect, according to the industrial policy manager at CNI, Samantha Cunha, the “environment of high uncertainty, harmful to investment and, consequently, to the recovery of productivity”.

“In the short term, difficulties such as the lack of inputs and pressure on production costs weigh in.”

Despite this, the industry, in the long term, expects an improvement in the indicator. “The expectation is for a resumption of productivity growth, driven by investment opportunities in new digital technologies, in the implementation of 5G networks, considered the basis for digitalization, and in green technologies, which are gaining importance in the face of the climate crisis”, says Samantha.

Remains accumulated

In the accumulated in four quarters (until the third quarter of 2021), labor productivity has decreased 2.4% compared to the same period of the previous year.

According to CNI projections, for the drop in 2021 to be less than 2%, labor productivity in the manufacturing industry would have to register an increase above 7% in the last three months of the year.

“The year 2021 will be the second consecutive year that the indicator has fallen, which should fall by more than 2%. The biggest drop registered by the indicator since 2000, the beginning of the historical series, was 2.2%, in 2008, a year marked by the global financial crisis”, highlights the entity.