Readers here know about my reports on the huge boom going on in Brazil. While some call it a bubble, I say this boom still has years left to go.
Today comes the latest Brazilian jobs report. While the U.S. unemployment stubbornly stays at very high levels, in Brazil 2010 was a record year for hiring, which ended with a balance of +2.5 million formal jobs. Employment is expected to remain steady in 2011, especially in industry.
Just in the Manaus Free Zone, which includes most manufacturers of consumer electronics and motorcycles, as well as chemical products, will make permanent about 7,000 temporary workers. They were recruited from October supposedly to increase production till year end.
There are 7 ETFs that track Brazil stocks, plus BZF which tracks its soaring currency. We track them all live here.
Note: BZF's perfomance is actually in excess of +10% as there was a very large dividend on December 22 and chart has not yet been adjusted by Google.
Most temporary workers who are now hired are in the electronics sector and the increased employment reflects a "quite heated" demand early this year, especially for televisions. "As the Christmas sales beat expectations, the stocks of finished goods fell in retail and are now being replenished."
For the second consecutive year, the Korean company Samsung will hire all the temporary workers, says the vice president of Business Development Company, Benjamin Sicsú. Close to 800 employees are to be hired.
"The early years are strong and we can repeat the sale of 11 million TVs," says Lourival Kiçula, president of Eletros, bringing together the sector's industries.
An FGV manufacturing survey of about 1,000 companies in various industries indicates that 31% of industries plan to hire in the period December-February and 5.7% plan to layoff. In November, the indicators were 28.6% and 7.8% respectively.