Annual Survey of Services

Services sectors is back to generating jobs in 2018, after three years shutting job positions

Section: Economic Statistics | Alerrandre Barros | Design: Jessica Cândido

August 27, 2020 10h00 AM | Last Updated: August 28, 2020 08h06 PM

  • At a glance

  • Services sector had 1.3 million enterprises and 12.6 million employed persons in 2018.
  • After three years of decline, employment in the sector was back to growth driven by the 7.7% increase in real estate activities.
  • All segments increased hiring, except for Transportation (-2.2%), driven by the 4.5% drop in road transportation of passengers.
  • The generation of net operating revenue reached R$1.6 trillion, with R$963.8 billion in gross value added and payment of R$353.4 billion in salaries and other compensation.
  • In ten years, there was a reduction in the concentration of gross revenue among the major regions of the country, with a highlight to the Southeast (63.3%), which lost participation to the South (15.7%).
In 2018, the balance of jobs created in the services sector was of 252.8 thousand - Photo: Dênio Simões/Agência Brasília

The number of employed persons in the services sector increased in 2018, after three years in a row of decrease. That year, 12.6 million persons were employed, 252.8 thousand more than in 2017 (12.3 million). Despite the number of jobs created, the sector has not yet returned to the level reached in 2014, when the employment accounted for 12.9 million workers. These are data from the Annual Survey of Services - PMS, released today (27) by the IBGE.

All segments in the sector expanded their hiring of personnel in 2018, except for Transportation, support activities for transportation and mailing (-2.2%), with a highlight to the decrease of 4.5% in road transportation of passengers. In Real estate activities, the quantity of employed persons increased 7.7%.

"Real estate activities, by the way, was the only segment that increases the number of hiring from 2014 to 2018. It is a very strong activity, with lower response to oscillations in the economy. We are talking about an activity related to construction. People kept selling and renting houses", said the survey analyst, Marcelo Miranda.

This improvement in job generation results from the opening of 17 thousand new enterprises in the services sector in 2018. Among the activities, just Transportation, support activities for transportation and mailing (-3.5%) and Maintenance and repair services (-2.0%) shut down doors that year, in comparison with 2017.

As a whole, 1.3 million enterprises were active in the sector, in 2018, generating a net operating revenue of R$1.6 trillion, with R$963.8 billion of gross value added. Those enterprises paid R$353.4 billion in salaries and other compensation to 12.6 million workers.

The contribution of Transportation, support activities for transportation and mailing to the net operating revenue increased to 30.0%. Professional, administrative and complementary services stood with the second biggest share (26.4%), followed by Information and communication services (22.1%). Services rendered mainly to families was the only segment to lose participation in the revenue (11.5%) in 2018. Other services activities stood with 5.8%.

"Transportation, support activities for transportation and mailing expanded its participation in the net operating revenue in 2018, but enterprises were shut down and jobs were lost. Looks contradictory, but that can be a sign of production increase in this segment", says Mr. Macedo.

Balance of jobs in Services reaches three million in ten years

In ten years, from 2009 to 2018, the balance was of 455.3 thousand enterprises in the services sector, employing more than 3.0 million persons. However, the average monthly salary of the sector was reduced from 2.5 minimum wages, in 2009, to 2.3 minimum wages in 2018. In all activities, the salaries underwent reduction or stood unchanged in the period.

Services rendered mainly to families, the sector with most job positions, kept the level of 1.5 minimum wages, the lowest among the segments surveyed, whereas the highest average was in Information and communication services (4.7 minimum wages). Among the activities, the most significant reductions were seen in Real estate activities (-1.0 MW) and information and communication services (-0.9 MW), driven by the decrease of 2.7 minimum wages in the activity if Telecommunication.

The survey also shows that, in ten years, there was reduction in the concentration of gross revenue among the country's Major Regions. Although the Southeast still leads with 63.3% of the revenue generated by the services sector, the region lost 3.3 pp of participation, whereas the South grew 2.6 pp, reaching 15.7% of the revenue. The Central-West (8.0%) also gained participation while the North (2.7%) and Northeast (10.3%) had a slight loss.

"This is a very general trend among the Regions. Rio de Janeiro (-2.0 pp), for instance, was one of the states that most lost share in the gross revenue. Meanwhile, São Paulo (2.1 pp) gained participation in the Southeast Region. That can be explained by the tax incentives, which provide competition among the states," says Marcelo Macedo.