The PAS (Annual Survey of Services) estimated in 885,266 the number of non-financial service companies operating in Brazil in 2004.  They generated R$ 381.0 billion in net operational revenue, employing approximately 7.093 million persons, whose wages and other remunerations summed R$ 72.22 billion.  In relation to 2003, there were increases of 4.8% in the number of companies (844,444 in 2003); of 11.0% in revenue (R$ 343.06 billion in 2003); and of 9.5% in the total of employed persons (6.478 million persons in 2003).  Between 1998 and 2004, the Southeast Region lost national participation in the total of gross revenue (from 68.1% to 65.7%); wages, withdrawals and other remuneration (from 67.1% to 66.3%); and employed persons (from 60.6% to 59.2%). Nevertheless, it still maintained the leadership in all the surveyed variables.  In the same period, among the Federation Units, Rio de Janeiro had the most significant decrease of participation in the gross revenue of services in the country (-1.5 percentage point), while Santa Catarina had the highest increase (0.6 percentage point).

As it had occurred in 2003, in 2004 the Information services activities (telecommunications, computer science, audiovisual, journalism and news agencies) were responsible for the major part of the net operational revenue of the sector (31.6% or R$ 120.4 billion), followed by Transportation, auxiliary services and mailing (30.6% or R$ 116.4 billion).  In relation to wages and the number of employed persons, the activities of Services rendered to companies  had the highest results (33.1% and 35.7% respectively) in 2004 – also repeating the scenario of 2003.  Regarding the number of surveyed companies (1), the major result, in both years, was observed in Services rendered to families (31.8%) as we can observe in the following table and graph.

Services rendered to families has lowest remuneration and lowest productivity

The group Services rendered to families, had, in 2004, an average of six persons by company and generated net operational revenue by company of R$ 121.0 thousand.  It had, nevertheless, the lowest monthly average remuneration, 1.7 minimum wage (compared to an overall average of 3.1 minimum wages) and the lowest average productivity (R$ 21.0 thousand).  The activity of major importance in this group was feeding services, with R$ 21.6 billion of revenue (63.4%); 57.8% of paid overall wages; 63.0% of employed persons; and 68.7% of the total of the 281,629 companies.

Telecommunication and Computer science are highlights in Information services

The group of Information services had, in 2004, one of the lowest participations in the number of companies (58,065 or 6.6%) and in the number of employed persons (6.3%).  The activities which form this segment paid R$ 11.1 billion in wages and other remunerations (15.4% of the total).  The group stood out with an average net operational revenue of R$ 2.073 million by company, productivity of R$ 270.2 thousand (considerably above the average of R$ 53.7 thousand) and salary of 7.6 minimum wages, twice as much as the average.

The activities of telecommunications generated R$ 79.8 billion of net operational revenue, 66.3% of the total of the group.  They were responsible for 31.5% of the overall wages, 18.9% of the employed persons and 2.9% of the number of companies. They had the major productivity (R$ 945.7 thousand on the average), the highest monthly remuneration (12.6 minimum wages) and the major average of employed persons by company (49 persons) of the group.

The segment computer science, responsible for 20.3% of the revenue generated by Information services, is increasing quickly since the previous decade and obtained the major participation in the total of employed persons (59.4%), in wages and other remunerations (49.5%) and in the number of companies (82.7%).

Temporary manpower and vigilance services employ more, but do not pay much

In 2004, the group Services rendered to companies had the second major participation in terms of number of companies (24.5%); average remuneration of 2.9 minimum wages; and employed 12 persons per company.  The average revenue was R$ 338.8 thousand, and the productivity, R$ 29.1 thousand.

The technical – professional services generated R$ 33.2 billion of net operational revenue (45.1% of the total) and had the major participation in the overall wages (38.2%).  Despite that the average of employed persons by company is lower in these activities (5 persons), the productivity (R$ 63.9 thousand) was the highest of the segment.  The companies of temporary manpower location and the one that provided vigilance services had a relatively high size, but also had a low scholarship labor force and remuneration below the average, as we can see in the following graph and table.

Railway transportation has the major companies in the service sector.

The activities of Transportation and mailing generated 30.6% of the net operational revenue of the service sector (R$ 116.4 billion), included 101,310 companies (11.4% of the total) and 1.568 million persons (22.1%).  With a revenue of R$ 1.149 million, they employed on the average 15 persons per company.

Among the companies of this group, the ones of railway transportation (passengers and freights) prevailed in 2004: generated R$ 55.0 billion (47.3%) of net operational revenue; participated with 50.7% of the overall wages; 65.1% (1.02 million) of the total of employed persons; and 71.3% of the total of 101,310 thousand companies.  In relation to the size of the companies, the highlight of the group Transportation and mailing was the activity of railway and subway transportation, in which 1,786 persons per company were employed - major concentration in the sector of services.

Real estate renting, maintenance of vehicles and financial auxiliary services are highlights in their respective groups

The companies of real estate renting generated a net operational revenue of 39.5% (R$ 5.3 billion) of the segment of Real estate activities and renting of real estate and material goods.  They were also the most significant companies in relation to wages and withdrawals (49.0%) and the number of employed persons (45.0%).  Together with the companies of machines and vehicles renting, they represented more than 80.0% of the total of companies of this segment in 2004.  The activity of real estate buying and selling, had the highest results in revenue by company (R$ 451.8 thousand) and productivity (R$ 119.5 thousand).

The companies of vehicle maintenance and repair obtained 52.0% of the total of R$ 7.1 billion of net operational revenue of the segment Maintenance and repair.  They also stood out in relation to the number of employed persons (65.2%) and overall wages (58.7%) and corresponded to 63.3% of the total of the 87,823 companies of this group.  The group of companies with activities related to computer science had the major average revenue, approximately R$ 295.8 thousand.  The productivity (R$ 74.2 thousand) and the monthly average remuneration (3.9 minimum wages) of this activity were above the other activities.

In the segment Other Services (2), the financial auxiliary services were the most important, with 38.5% of the total of R$ 16.0 billion in net operational revenue and 31.7% of the total of R$ 3.5 billion of wages, withdrawals and other remunerations in 2004.  Regarding the number of companies, commercial agents and representation stood out (74.9%).  The activity urban sanitation and sewage services had the second lowest productivity in this group (R$ 32.1 thousand), and the major average net revenue R$ 2,532.3 thousand.
 
Southeast decreases participation in the sector of services between 1998 and 2004

Between 1998 and 2004, the Southeast lost participation in the totals of gross revenue; salaries, withdrawals, and other remunerations; and employed persons in the sector of services.  Although concentrating the major part of business of the sector for all the variables, the growing rates in these indicators were lower than those of the other regions.  The diminishment of the participation of the Southeast is a consequence of the low performance of the two major segments of activity in the region: Transports and auxiliary services and Services rendered to companies (see following table).

In 1998, the Southeast represented 68.1% of the gross revenue generated by the non-financial service companies active in Brazil while in 2004 this contribution was 65.7%.  All the other regions had growth, and the Central West had the highest relative increase (from 5.9% in 1998 to 6.7%, in 2004).

For the total of wages, withdrawals and other remunerations, the participation of the Southeast changed from 67.1% in 1998 to 66.3% in 2004, being that the region with higher dynamism was the Northeast, which in 1998 was in the level of 9.4%, having increased to 10.2% in 2004.  The same dynamic can be observed in the analysis of the number of employed persons: the Southeast was responsible for 60.6% of the total in 1998, changing to 59.2% in 2004, while the Northeast had the major growth (from 12.8% to 14.0%).

The Southeast Region concentrated the major number of companies in 1998 (57.6%) and 2004 (59.5%). In this indicator, the South, second region in terms of number of companies, had, in the same period fall of 2.4 percentage points in its participation (from 25.1% to 22.7%).

In the comparison between 1998 and 2004, the segment of Auxiliary services and transportation, despite being important in the generation of revenue and employment, diminished its participation in all the regions, with the exception of the South, where it was responsible for 32.9% of the gross revenue in 1998 and 33.8% in 2004.  Mailing and telecommunication was the only group which increased its participation in terms of revenue in all the regions, especially the North (where it changed from 27.7% in 1998 to 35.1% in 2004) and in the Southeast (from 17.9% to 23.6%).  This performance was not observed in the other variables.

The segment of Services rendered to companies increased its participation in all the regions for all the variables, with the exception of the Southeast, where it had 22.2% of the revenue in 1998, compared to 20.7% in 2004.  The most significant gain of these activities was observed in employed persons, especially in the North and in the Northeast (13.2 and 7.2 percentage points respectively).  The Services of lodging and feeding were the only ones to diminish their participation in all the variables, with the worst performance in terms of generation of revenue in the Central West Region (decrease from 11.5% in 1998 to 6.4% in 2004).

From 1998 to 2004, RJ has major decrease of participation in revenue; and SC the major increase

In 1998 as well as in 2004, São Paulo had the major participation in the generation of revenue in the group of activities of PAS (43.0% and 42.3% respectively).  In this same period, Rio de Janeiro (15.7% in 1998 and 14.2% in 2004) and Minas Gerais (8.1% and 7.9%) maintained the second and third positions among the Federation Units.  The three states, nevertheless, lost relative participation, especially Rio, which had the major decrease: 1.5 percentage point.

In the South Region, Rio Grande do Sul was the main state in terms of generation of revenue and the fourth major Federative Unit in the total of  Brazil (6.1% in 1998 and 5.7% in 2004).  Paraná was, in 1998 and in 2004, the fifth major FU (5.1% of contribution to 5.3%). Santa Catarina was the state with the major growth, 0.6 percentage points (from 2.8% in 1998 to 3.4% in 2004), changing in the Brazilian ranking from eighth to seventh place.

All the other FUs had growth above the Brazilian average or continued stable, without changing their positions regarding participation in the gross revenue of services in the Brazilian total.  In the Northeast, stood out Bahia, which in 1998 answered for 3.2% of the gross revenue of services in the country and changed to 3.5% in 2004 (6th place in both years).  In the Central West Region, Goiás continued with the major participation (1.5% in 1998 and 1.9% in 2004). Amazonas was the most representative state in the North Region (1.1% in 1998 compared to 1.2% in 2004).

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1 - The segment of Services rendered to companies has its importance related to the increasing outsourcing of economic services.

2 - Auxiliary services of agriculture, commercial agents and representation, financial auxiliary services, complementary social funds and activities of urban sanitation and sewage services.