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Formal employment increased by 13.3% from 2003 to 2006

January 25, 2007 10h00 AM | Last Updated: March 16, 2018 02h41 PM

According to the Monthly Employment Survey, the employed population in the main metropolitan areas of the country increased by 8.6%, and domestic work increased by 18.4%, in this period.  Since 2003, the average income of workers has increased by 5.6% and the unemployed population has decreased by 14.4%. The average household income per capita has increased 10.7%.

 

In 2006, the employed population had an average increase of 2.3%, in comparison with 2005, and of 8.6% in relation to 2003. The increase of employment was bigger among women persons 50 years of age or over, with 11 or more years of schooling, spouses and children.

 

The group of employed persons with a formal contract in the private sector had the biggest increase (5.2%) between 2005 and 2006. The results for 2006, when compared to those of 2003, show that the number of domestic workers increased by 18.4%, even surpassing the increment of the number of persons employed with a formal contract (13.3%).

 

The increase of employment in the period 2005-2006 resulted from the increment in the group Services rendered to enterprises, rents, real estate activities and financial mediation (5.0%). In the period 2003-2006, this group increased by 15.5%, a figure only second to the result for Domestic services (18.4%).

In 2006, the number of unemployed persons, that is, the ones looking for a job, increased by 4.0% in relation to 2005, but in relation to 2003, it decreased (-14.4%). The estimated average unemployment rate for the month was 10%. Between 2003 and 2005, the estimated figures were 12.3% and 9.8%, respectively. The average income usually earned by the employed population was estimated to be R$ 1,045.75, having increased by 4.3% in comparison with 2005, and by 5.6%, in comparison with 2003.

Employment increased among women

 

In 2006, the monthly average number of employed persons, in the six metropolitan areas, increased by 2.3% in comparison with 2005. This oscillation, though positive, shows the deceleration of the growth rhythm of occupation in the areas of Salvador, São Paulo e Porto Alegre. In relation to 2003, there was 8.6% increase of occupation, and it was the biggest increment in the metropolitan area of Belo Horizonte (14.1%). Recife was the area with the lowest change (4.6%), especially due to its low performance in 2004 and 2005.

The evolution of employment was different in the analysis by sex both between 2005 and 2006 and between 2003 and 2006. The results show that, in both periods, the increase was more significant among women in all the metropolitan areas. Consequently the participation of women in the group of employed persons changed from 43.0%, in 2003, to 44.0%, in 2006. The only exception was the metropolitan area of São Paulo in 2006, when compared to 2005, when there had been change of 2.0% among men, versus 1.7%, among women.

In relation to age, there was the continuation of a bigger participation of persons 50 years of age or over, and the decrease of the participation of persons between 18 and 24 years of age in all the metropolitan areas, both in comparison with 2005 and in relation to the average figures of 2003.

 

The increase of occupation was a consequence of the figures of the group of persons with 11 or more years of schooling, which represented, in 2006, 52.1% of the persons employed, versus 46.7%, in 2003. All the other groups had reduction of the participation, as shown in the table below.

 

Among the employed persons, 48.5% were the main heads of the household, 22.3% were spouses and 24.0% were children. Between 2003 and 2006, in all the metropolitan areas, the increase of employment occurred together with a bigger participation of spouses and children, except in Rio de Janeiro, where the distribution of employed persons according to the position in the family remained unaltered.

 

In 2006, the employed persons had an average number of 40.5 hours of work per week. All the metropolitan areas, except Recife, faced reduction of the number of hours worked between 2003 and 2006.

 

In relation to enterprises, the results show that most persons were employed in enterprises with 11 or more persons (57.3%). In 2006, there was increase of employment in the organizations with 11 or more persons. In the metropolitan areas of Salvador, differently from the other ones, the increase of employment was significant in enterprises with 1 to 5 persons.

 

Estimates show that both last year and in the period between 2003 and 2006 there was more increase of the percentage of the employed population which contributes to social security than of the overall employed population.  The number of employed persons increased by 8.6%, and, as shown in the table below, the change was 11.9% among those who contribute to security.

 

The number of employed persons contributing to Social Security has increased by 11.9% since 2003

 

In 2003, 61.2% of the employed persons in any activity contributed to social security; in 2006 this percentage increased to 63.1%. The biggest and the lowest percentages of contribution to Social Security were those of the metropolitan areas of Porto Alegre (67.9%) and Recife (54,0%), respectively.

Among the employed persons who contributed to social security in 2006, 57.6% were men and 42.4% were women. In relation to age, it was observed that 15.6% were between 18 and 24 years of age; 67.2% were between 25 and 49, and 16.5% were 50 years of age or over.

 

Employed population with a formal contract grew in all the areas, except in Salvador

 

The employed population was classified into eight categories: workers with a formal contract in the private sector, workers without a formal contract in the private sector, own-account workers, employers, domestic workers, military or public civil servants, workers with a formal contract in the public sector and workers without a formal contract in the public sector. The results show that, in the employed population, both last year and in the period between 203 and 2006, there was gradual increase of the participation of workers with a formal contract in the private sector.

    Table 13: Distribution of the Employed persons, by Metropolitan Area,

                                 by Position in the Activity (%)*


Of all the areas, Salvador was the only one to face decrease in comparison with 2003, once the percentage of this group of workers changed from 36.0% to 35.6% of the employed population. In 2006 the highest percentage of this category among employed persons was in São Paulo (44.6%) and the lowest one, in Recife (33.7%).

 

Employed population with a formal contract has increased by 13.3% since 2003

 

In 2006, the average of monthly estimates for workers with a formal contract in the private sector was about 8,4 million persons, in the group of six metropolitan areas surveyed. Between 2005 and 2006, this category of position in the activity also increased by 5.2%, versus change of 2.3% in the employed population. Between 2003 and 2006, this category also increased significantly: by 13.3% (985 thousand persons). The metropolitan area of Belo Horizonte had increase of 20.9% and the metropolitan area of São Paulo, of 14.6%.

 

In terms of years of schooling, the results show that the group of workers with a formal contract in the private sector and with 11 or more years of schooling changed from 53.4% to 60.2%, in 2006. On the other hand, among those with a lower level of education who did not finish high school (without instruction or with less than 8 years of schooling), there was reduction of participation in all the areas surveyed.

The classification of workers with a formal contract in the private sector by group of activity, it was possible to identify that Mining and quarrying industry, manufacturing industry and distribution of electricity, gas and water, accounted for 26.0% of the total in the group of six areas. In Porto Alegre, the participation was 34.4% and, in Salvador, 15.9%. 

The group Trade, repairs of automotive vehicles and of personal and domestic objects and retail trade of fuels, in which are concentrated 20.5% of the workers with a formal contract in the private sector, had a more homogeneous distribution among the metropolitan areas.

 

The data also revel that the metropolitan area of Rio de Janeiro had the biggest contribution (24.5%) from the group Services rendered to enterprises, rents, real estate activities and financial mediation, among workers with a formal contract in the private sector.   

Number of workers without a formal contract has fallen by 3.1% since 2003

 

The average participation of workers without a formal contract in the private sector in the group of employed persons changed from 15.5%, in 2003, to 14.8%, in 2006. This reduction resulted from the significant increase of the number of workers with a formal contract (13.3%), once between 2003 and 2006, the number of workers without a formal contract in the private sector changed by 3.1%.

In 2006, men made up 62.2% of the workers without a formal contract in the private sector and women, 37.8%. In relation to age, the survey showed increase of participation of persons 50 years of age or over, from 11.8%, in 2003, to 13.1%, in 2006. This was also observed in all the areas surveyed.

In terms of schooling, there was also bigger participation of persons with 11 or more years of schooling in all the metropolitan areas investigated by the Monthly Employment Survey. In 2006, among the workers without a formal contract in the private sector, 32.5% had no instruction or had less than 8 years of schooling; 23.2% had from 8 to 10 years of schooling (had finished elementary school) and 44.3% has 11 or more years of schooling (had finished high school).

 

 Table 20: Distribution of the workers without a formal contract

in the private sector, by metropolitan area, by group of activity (%)*

Considering that workers without a formal contract in the private sector classified into groups of activity, there was, between 2003 and 2006, increase of the participation in the groups Services rendered to enterprises rents, real estate activities and financial mediation (from 14.1%, in 2003, to 15.1%, in 2006), and Other services (from 22.7% to 23.7%).

 

Own-account work decreased one percentage point

 

Own-account workers (3,881 million persons) made up, in 2006, 19.1% of the employed persons; in 2003, this proportion was 20.0%. The area with most concentration of this type of participation in the job market was Rio de Janeiro, with 23.1%; the lowest percentage was that of São Paulo, where 16.1% of the employed persons were own-account workers.

 

In this group of workers there was also increase of the participation of women, from 36.6% in 2003, to 38.0% in 2006, and of persons with 11 or more years of schooling, from 32.7% in 2003 to 37.1% in 2006.

 

The participation of persons 50 years of age or over reached 31.0% in 2006, versus 27.6%, in 2003. It is also important to mention that, among the employed persons, the group who was 50 years of age or over represented 18.5% in 2006. This behavior was more significant in the metropolitan area of São Paulo, where the contribution of own-account workers changed from 27.7% in 2003, to 33.1%, in 2006.


In terms of group of activity, it is worth mentioning that, in Recife, 43.2% of the own-account workers were in the group Trade, repair of automotive vehicles and of personal and domestic object and retail trade of fuels, as shown in the table below.

The number of military and civil servants increased in all the metropolitan areas, but in Rio de Janeiro

 

Among the employed persons, in the group of six metropolitan areas, 7.4% were military or statutory civil servants, with a total of 1,495 million persons in 2006. This percentage (7.4%) remained stable between 2003 and 2006, but among the areas the increase of participation of this category was significantly different. In terms of the increase of the number of persons in this group, the biggest monthly average increase - in 2006 compared to 2003 - occurred in the metropolitan area of Recife (26.3%). In this area, the presence of military and statutory civil servants in the employed population  increased from 8.4% to 10.1%. the metropolitan area of Rio de Janeiro was the only one to face decrease between 2003 and 2006 (-2.2%)


In the group of metropolitan areas, women were the majority (52.7%), but in Recife and in Rio de Janeiro they made up 45.9% and 45.3%, respectively. In terms of age, among military and statutory civil servants, 6.7% were between 18 and 24 years of age; 66.1% were between 25 and 49 years of age, and 27.2% were 50 years of age or over. It is worth mentioning the increase of the group who was 50 years of age or over, since in 2003, they represented 22.2% of the overall number of military and statutory civil servants.

 

Among the categories, domestic workers was the one with the greatest increase since 2003

The participation of domestic workers among the employed persons was 8.2% in 206, versus 7.6% in 2003. The results relative to this group - 1,672 million in 2006- show that this was the category with the greatest increase between 2003 and 2006 (18.4%). This growing trend results from the increase in the number of domestic workers in the years 2004/2003 (6.9%), and 2005/2004 (7.7%). The average increase in 2006, in relation to the estimates for 2005, was only 2.8%.

In 2006, 94.4% of the domestic workers were women; 1.3% were between 15 and 17 years of age; 8.8% were between 18 and 24; 67.5%, between 25 and 49; and 22.1% were 50 years of age or over. 

In relation to schooling it was observed that, as in the other type of participation in the labor market, there was increase of the group who had 11 or more years of schooling in the period between 2003 and 2006 (from 9.8% to 14.8%).

 

In 2006, of the total of domestic workers, 34.8%, that is, 581 thousand persons had a formal contract. The highlight was the metropolitan area of Porto Alegre, where this proportion reached 42.4%. On the other hand, in Recife, only 31.7% had a formal contract. Between 2003 and 2006 the survey showed that, in relation to the number of domestic workers, there was increase of 16.7% of the group with a formal contract and of 19.3% of those without a formal contract.

 

Since 2003, Domestic services was the group with the biggest increase

The results show that, in Domestic services, with 1,672 thousand persons accounting for 8.2% of the employed population, there was stability between 2005 and 2006. In the period between 2003 and 2006, this group of activity increased by 18.4%.

 

Table 28:  Distribution of the employed persons by metropolitan

 area, by group of activity (%)*

Employment in Services rendered to enterprises, rents, and real estate activities and financial mediation increased in such a way that the participation of this group changed from 13.9% to 14.3% in 2006. In relation to estimates for 2003, this group grew by 15.5%, which corresponds to an increment of 389 thousand persons, also above the increase of the employed population (8.6%).

Between 2003 and 2006, the following groups of activity had increase of the employed population below the average: Mining and quarrying industry, manufacturing industry and distribution of electricity, gas and water (7.6%); Construction (3.4%), Trade, repair of automotive vehicles and of personal and domestic objects and retail trade of fuels (5.4%); Education, health, social services, public administration, defense and social security (7.6%) and Other services (8.3%).

Unemployed population has fallen by 14.4% since 2003

The results of the Monthly Employment Survey, for the six metropolitan areas investigated, show that, in 2006, there was an inversion in the falling trend of the average monthly number of unemployed persons in the years of 2004 and 2005. The monthly average of the unemployed population was 2,245 million persons, which represented an average monthly increase of 4.0%, when compared to the estimates for 2005. This expansion was observed in all the metropolitan areas, except in Salvador. 

The increase of unemployment in 2006, however, was not enough to reach the average of the monthly estimates for 2003 (2,624 persons) and 2004 (2,493 persons). The metropolitan area of Recife was the only one to experience increase, in comparison with 2003.

Between 2003 and 2005, the decrease of the number of unemployed persons occurred for both sexes. The reduction was more significant among men, and the percentage of women increased in this period, from 54.6% in 2003 to 56.6% in 2005. Between 2005 and 2006, however, there was increase of the number of employed persons, differently from what had been observed in previous years, and the participation of women fell to 55.2%. This reduction in the participation of women was due to the fact that, in 2006, the number of women changed by only 1.5%, versus increase of 7.15 of the number of men. The reduced number of women among the unemployed was observed in the areas of Rio de Janeiro, São Paulo and Porto Alegre.

The increase of unemployment occurred in all the age groups analyzed between 2005 and 2006: 1.6% among persons between 15 and 17 years of age; 3.0% for those between 18 and 24 years of age; 4.9% for persons between 25 to 49 years of age and 4.3% for persons 50 years of age or over. Consequently, the percentage of persons between 25 and 49 years of age changed from 46.5% in 2005, to 46.8% in 2006. on the other hand, the percentage of unemployed persons between 18 and 24 years of age changed from 38.4% in 2005 to 38.2% in 2006. It is worth mentioning that, between 2003 and 2005, the results shoed increase of the participation of youths between 18 and 24 years of age. in 2003, they accounted for 36.5% of the unemployed persons.

 

In relation to the level of instruction of the unemployed persons, as observed in previous years, there was increase of the number of persons with more schooling. In 2006, the persons with 11 years or more of schooling made p 47.9% of the unemployed, versus 39.9% in 2003. In the metropolitan area of São Paulo, the change reached 9.6 percentage points.

Between 2003 and 2006, the participation of the persons who declared to have never worked before, among the unemployed, increased gradually, and reached 20.4% of the number of unemployed persons in 2006, versus 18.5% in 2003. The only metropolitan area with a different performance was Porto Alegre, where the participation of persons who had never worked decreased for the second consecutive year.  

 

In 2006, the average unemplpyment rate was higher than in 2005

 

In all the months from May 2004 and April 2006, the unemployment rate was always below the estimates for the same month in previous years. In May 2006, there was an interruption of this tendency, and from June 2006, the unemployment rate surpassed the rate in 2005, but even so, remained significantly below the figures in 2003 and in 2004.

 

This way, the average of the monthly estimates of 2006 (10.0%) was above that of 2005, but was inferior to the rates of previous years. In the metropolitan areas of. Rio de Janeiro, São Paulo and Porto Alegre, the indicator had similar evolution. In Recife, there was increase of the unemployment rate for the second consecutive year. On the other hand, in 2006, the unemployment rate decreased, in comparison with 2005, in all the metropolitan areas of Salvador and Belo Horizonte. In Salvador, the decrease resulted from of the number of unemployed persons (-11.3%), but in Belo Horizonte it was related to the number  of employed persons (5.9%).

The analysis by sex led to the conclusion that, in 2006, the employment rate among men was over the average figure in 2005. Among women, on the other hand, there was continuation of the falling trend observed since 2003, as can be seen in the table below especially because of the indicator in the areas of Salvador, Belo Horizonte and Rio de Janeiro.

The unemployment rates by age are significantly higher among youths from 15 to 17 years of age (32.6%) and from 18 to 24 years of age (21.0%). Between 2005 and 2006 there was reduction of 1.0 percentage point among those from 15 to 24 years of age for the group of six metropolitan areas in comparison with the estimates for 2003. All the age groups surveyed had reduction as shown in the table below.

In terms of schooling, it was observed that persons with 8 to 10 years of schooling had the highest unemployment rates. In relation to 2005, all the figures remained stable. In comparison with 2003 there was fall, also in three types of analyses: persons without instruction and with less than 8 years of schooling; with 8 to 10 years of schooling and with 11 or more years of schooling, as show in the table below.

The evolution of the unemployment rate according to the position in the family occurred together with the average unemployment rate for the total population, with stability between 2005 and 2006 and decline in the longest period between 2003 and 2006.

  

Among the groups of activity, construction had the biggest decrease in the unemployment rate between 2003 and 2006 (from 8.9% to 5.5%), especially due to the performance of the metropolitan area of São Paulo, where the average figures of this estimate oscillated between 9.7% in 2003 and 5.5% in 2006.

 

The only group of activity to present positive change between 2003 and 2006 was the group Mining and quarrying industry and distribution of electricity, gas and water in the metropolitan area of Porto Alegre.  

 

Average real income has increased by 5.6% since 2003

 

 

 

In 2006, in the group of six areas covered by the Monthly Employment Survey, the annual average of the average monthly income of the employed population was estimated as R$ 1,045,75, representing an increase of approximately 4.3% in relation to the average estimated for 2005. In the table below, results show that the same behavior was observed in all the areas. In the metropolitan areas of Recife and São Paulo, the annual gain was above 5.0%.

 

In 4 years (between 2003 and 2006), there was a more significant increase of the purchasing power of the employed population in the group of six areas surveyed (5.6%). All the metropolitan areas, except that of  Porto Alegre, faced changes in the annual average of the average monthly income of over 5.0%.

 

Despite the visible recovery of the employed population in the last two years, as mentioned in the previous paragraphs, there was not recovery of the purchasing power of the population in relation to 2002.* In the second semester of 2006, the income was lower than the figure registered for the same period in 2002 (-6.4%).


 

 

The retrospect edition of the Monthly Employment Survey also brings analyses of the average real income of the employed population by type of participation in the groups of activity.

 

Income of military and civil servants increased by 6.5% in comparison with the figure in 2005

 

The analysis of income, in terms of type of participation in the labor market showed that 2006 was a year for increments in the purchasing power of all the categories.

 

Workers in the private sector (with and without a formal contract) had, in one year, increase of about 4.0%, whereas for own-account workers the increase was about 5.0%. The income of employers had gain of approximately 2.2%.

 

The category which encompasses the military and civil servants was the one which had the biggest increase in relation to 2005, in the group of six areas surveyed (6.5%).  

 

By area, the highlights were the increase of 7.2% of the income of workers without a formal contract, in the metropolitan area of São Paulo and the increase of 12.1% for own-account workers, in the metropolitan area of Porto Alegre.

 

Income increases in all the groups of activity

 

The analysis of the average real monthly income for the group of six areas surveyed, in relation to the seven groups of activity, shows that there was gain in all of them in 2006.

 

In the group of six areas, almost  all the groups of activity had bigger increase from 2005 to 2006 than from 2004 to 2005, except Trade, repair of automotive vehicles and of personal and domestic objects and retail trade of fuels and Other services (lodging, transportation, urban cleaning and personal services).

 

The category which encompasses Domestic services had the biggest annual increase from 2005 to 2006 (7.3%). The increase of the minimum wage, the main index of this category, was the main responsible for this behavior. In this category are concentrated the lowest income.

 

The groups Education, health, social services, public defense and social security and Services rendered to enterprises, rents, real estate activities and financial mediation, in which are the jobs with the highest income, had increase between 2005 and 2006 (5.1% and 2.7%, respectively). In 2003, 2004 and 2005, the group Education, health, social services, public administration and social security did not face significant changes.

The increase observed in the annual average of the average monthly income related to Domestic services was approximately R$ 25,00, versus r$ 70,00 in the group Education, health, social services, public administration and social security.

The group Mining and quarrying industry, manufacturing industry and distribution of electricity, gas and water also had positive results. The income increased by 5.8% between 2005 and 2006. All the areas had increase in this group of activity; the exception was the metropolitan area of Salvador (-1.7%).

 

The group Construction, which has faced a sequence of decreases of income had, between 2005 and 2006, increase of 4.1%.

  

Household income per Capita has increased by 10.7% since 2003

 

The annual average monthly household income per capita was estimated as R$ 648,46, for the group of six areas surveyed in 2006, and had change of 6.1% in relation to 2005. Although this estimate in the metropolitan area of São Paulo was the highest among the areas surveyed and the only one above two minimum wages (R$ 761,60), the biggest annual increase occurred in a metropolitan area in the Northeast Region (Recife, with 10.8%). It is worth mentioning that this region had the lowest annual average of monthly household income per capita (R$ 411,42).

 

* The time series of PME, which started in March 2002, does not provide an annual comparison. Therefore, comparison between the second quarters was made .