Industry productivity indicator drops 1.3% in the second quarter

Labor productivity in industry in the third quarter of 2021 returned to the level of the second quarter of 2020, the most serious moment of the crisis caused by the covid-19 pandemic. This is shown in the study Productivity in Industry, by the National Confederation of Industry (CNI), released today (3).

The indicator that measures the ratio between the volume produced and hours worked in production dropped 1.3% in relation to the second quarter of the year, in the series without seasonal influence.

The survey reveals that the volume produced in the third quarter of 2021 decreased by 1.9% compared to the second quarter of this year. And hours worked fell by 0.6% on the same basis of comparison.

According to CNI, productivity has been declining since the last quarter of 2020. In comparison with the third quarter of 2020, the last quarter of the indicator’s high, the accumulated loss reaches 7.6%.

For CNI, the consecutive declines reflect the environment of high uncertainty, which is harmful to investment and, in the short term, weighs down difficulties such as the lack of inputs and pressure on production costs.

According to the study, 2021 will be the second consecutive year of a decline in productivity, which should fall by more than 2%. The biggest drop registered by the indicator since the beginning of the historical series, in 2000, was 2.2%, in 2008, a year marked by the global financial crisis.

According to CNI, despite the challenging scenario for the coming months, the outlook is for improvement in the long term, due to opportunities linked to digitalization and the transition to a more sustainable economy. “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 digitization, and in green technologies, which are gaining importance in the face of the climate crisis,” said the manager of CNI industrial policy, Samantha Cunha, in a note.

Text translated using artificial intelligence.