The Annual Survey of Services (PAS 2006) estimated that 958,290 companies were included in the sector of non-financial services, receiving R$ 278.2 billion in value added and R$ 501.1 billion in net operational revenue.  These companies employed approximately 8.2 million persons, whose salaries, withdrawals and other compensations amounted to  R$ 95.1 billion.  Transportation, auxiliary services to transportation and mailing activities generated the major net operational revenue of the sector (149.7 billion), while the subsector of services rendered to companies obtained the major participation in value added (R$ 80.3 billion).  Services rendered to companies stood out as the main subsector in terms of employed persons (3 million employed persons) and in terms of salaries, withdrawals and other compensations (R$ 31.6 billion).

PAS also showed that between the years 2000/2006, the participation of the big companies¹ in the total value added ² of the sector of non-financial services increased from 48.5% to 50.7%, influenced by the growth in the segment of services rendered to companies. In this segment, the activity selection and distribution of temporary labor force brought the most significant increase among big companies.  On the other hand, big companies of the subsectors of information services and transportation, auxiliary services to transportation and mailing activities had decrease of participation in almost all the economic variables.  In relation to the average size of the big companies, in the comparison 2000/2006, stood out the reductions in the segments of air transportation (from 4,073 to 2,395 employed persons on the average by company) and mailing and other delivery activities (from 12,193 to 7,541 employed persons on the average by company).
 

PAS is the main data source about the structure of non-financial business services in the country, detailed by Federative units and providing information about number of companies, employed persons, salaries, value added and net operating revenue of companies which work in seven subsectors: services rendered to families; information services; services rendered to enterprises; transportation, auxiliary services to transportation and mailing activities; real estate activities and rent of goods and real estate; maintenance and repair and other service activities. PAS 2006 also brings a specific analysis of major non-financial business companies, once they accounted, that year, for 54.7% of the net operating revenue, for 50.7% of the value added and for 39.3% of  all the persons employed in the services sector, as well as for structural changes  in these big companies in the period 2000/2006.

 

Transportation, auxiliary services to transportation and mailing activities generated the highest net operating revenue of the sector of non-financial services: R$ 149.7 billion (29.9%), followed by information services (28.7%) and services rendered to enterprises (21.5%). The segment of services rendered to enterprises had the biggest level of participation in value added: R$ 80.3 billion (28.9%). Information services and transportation, auxiliary services to transportation and mailing activities, with participation of 24.5% and 25.4% of the total, respectively, were also highlights in this economic activity in 2006. Services rendered to enterprises were the main subsector, in terms of employed persons, withdrawals and other compensation; resulting in a total of 3 million employed persons (36.2%), who received R$ 31.6 billion (33.2%) as salaries, withdrawals and other compensation. In relation to the number of companies, the main subsector was services rendered to enterprises, with 308 thousand companies (32.2% of the total) in 2006, followed by services rendered to enterprises (23.4%).

Feeding services generated most of the revenue of services rendered to families 

 

Services rendered to families are activities directed to the final consumer, which include lodging services, feeding, cultural and recreational services, personal services and activities of continued education. In this segment, feeding services (which include restaurants, bars, snack bars and supply of ready-to-eat food) was the most important activity in terms of revenue generation (R$ 29.3 billion or 63.7% of the total), salaries, withdrawal and other compensation (59.5%), employed persons (64.5%) and number of companies (68.9%). There were, on average, 6 employed persons by company in services rendered to enterprises, in 2006. In this subsector, lodging companies had a high position, above the average of services rendered to enterprises, with 11 employed persons by company. Recreational and cultural activities, on the other hand, presented results above average for the indicators of average monthly salary (2.0 minimum wages) ad productivity (R$ 21.8 thousand).  

 

In the subsector of information services, computer science activities were the highlight, with major participation in number of companies (81.7%), employed persons (63.3%) and salaries, withdrawals and other compensation (55.4%). Telecommunications, with net operating revenue of R$ 88.8 billion in 2006, was the activity with the major participation in the revenue of the subsector (61.7%). The sector was also a highlight with 38 employed persons by company, versus 9 in the total services activities, productivity (R$ 430.6thousand) and average salary (9.8 minimum wages), whereas, in the subsector, these indicators were R$ 125.3 thousand and 6.3 minimum wages.

 

In the segment of services rendered to enterprises, the highlights were technical-professional services, in 2006, in the generation of net operating revenue (R$ 51.8 billion or 48.2%) and in the number of companies (53.4%). These services also had relevant contribution of salaries, withdrawals and other compensation (34.6%). Cleaning services in buildings and households were the highlight in terms of employed persons (1.4 million persons or 47.1%), and salaries, withdrawals and other compensation (R$ 11.2 billion or 35.5%). In 2006, there were, in the country, about 3,206 companies of the services sector in investigation, security, surveillance and transportation of values, which generated net operating revenue of R$ 11.3 billion and employed 463 thousand persons. With an average of 145 persons employed by company, these companies were the biggest ones in terms of services rendered to enterprises, followed by services of hiring of temporary manpower (107 persons employed by company). Technical-professional services (consulting, publicity agencies, offices of law and accountancy, engineering and architecture services) were the highlight in terms of average monthly salary, 4.6 minimum wages, and productivity, R$ 70 thousand, although this group was formed by smaller companies with, on average, 5 persons employed by company. 

 

In transportation, auxiliary services to transportation and mailing activities, about 89.7 thousand companies (70.9%) in the field of land transportation – encompassing the urban and interurban transportation of passengers and the transportation of cargo – had the biggest level of participation in net operating revenue (R$ 76.0 billion or 50.8%), in salaries, withdrawals and other compensation (51.0%) and in employed persons (65.8%). In 2006, the average number of employed persons by company in railroad transportation and subway transportation was 1,661, the biggest result both in terms of the transportation subsector (15 persons by company) and of the total of service companies (9 persons by company). This was also the most productive subsector, with r$ 113.4 thousand in valued added by each worker; considering the overall subsector, this indicator was R$ 38.5 thousand. Air transport  paid the highest monthly wages in the transportation subsector (10.9 minimum wages , versus the average of 3.2 minimum wages), as well as in the total services sector (2.7 minimum wages).

In 2006, in the subsector of real estate and rent of goods, rental companies of machinery and vehicles 923.8 thousand) were the ones which most contributed to the generation of revenue (R$ 8.5 billion or 38.6%), salaries (46.6%) and employed persons (50.3%). Companies of incorporation, purchase and sale of real estate were the highlight in terms of productivity (R$ 96.6 thousand) and average salary (3.5 minimum wages). The activity rent of vehicles, machinery and personal and domestic objects had the highest average number of employed persons by company (6), above the total in the segment, 5 persons.

 

 

In the subsector of maintenance and repair, the highlights in 2006 were the 57.6 thousand companies of maintenance and repair of vehicles (63.1%), with R$ 4.7 billion in net operating revenue (53.3%), 65.0% of employed persons and 60.6% of salaries, withdrawals and other compensation. Maintenance and repair of office machines and of computer equipment (with 8.5% of the companies), accounted for 25.4% of the net operating revenue. In 2006, the average number of persons employed in maintenance and repair services was 4 persons by company. Maintenance and repair of personal and domestic objects employed 3 persons by company. Companies of maintenance and repair of office machines and computer equipment stood out in terms of indicators of average monthly wage (2.7 minimum wages) and productivity (R$ 39.7 thousand).

 

The subsector other service activities encompasses auxiliary agricultural services, trade and commercial representation agents, auxiliary financial services, insurance and complementary security and urban cleaning and sewage.  Auxiliary financial services, with net operating revenue of R$ 9.5 billion, had the biggest participation in revenue (40.7%) in 2006. This activity paid R$ 1.7 billion in salaries, withdrawals and other compensation (32.5%). In terms of employed persons, the highlight was urban cleaning and sewage, with 137 thousand employed persons (32.4%) and trade and commercial representation agents (31.3%). The main activity, in relation to the number of companies, was trade and commercial representation agents, with a total of about 69 thousand companies (73.9%). In 2006, urban cleaning and sewage were the major ones, in terms of employed persons, with an average of 69 persons employed by company, versus 5 of the total. Auxiliary financial services, insurance and complementary security was the most productive activity – each worker added R$ 75.4 thousand of value – and with it had the highest average monthly salary, 4.5 minimum wages.

 

Sector of services rendered to enterprises was the main one in the category of big service companies

 

Big companies (with 250 or more employed persons) encompassed only 3,055 non-financial service companies which, however, had in 2006, over half of the value added of the services sector (R$ 140.9 billion), besides R$ 274,1 billion in net operating revenue and employed 3.2 billion persons, whose salaries, withdrawals and other compensation amounted to R$ 47.1 billion. The biggest number of companies, including big ones, was in the subsector of services rendered to enterprises (47.1%), followed by transportation, auxiliary transportations services and mailing activities (33.8%). Whereas the average salary for the companies in general was 2.7 minimum wages, for big ones it was 3.3 minimum wages. Productivity, on the other hand, was R$ 34.1 per capita, in general terms, and R$ 43.9 per capita, in big companies

 

Companies which had the biggest level of participation in value added, in the total group of companies, belonged to the subsector of services rendered to enterprises (28.8%), whereas among big companies, they worked in the subsector of information services (37.1%). For employed persons and salaries, withdrawals and other compensation, the subsector of services rendered to enterprises was in the first position in terms of participation both in the total of companies (36.2% and 33.2%, respectively) and in big companies (53.1% and 36.1%, respectively), in 2006. In terms of participation in net operating revenue, for the total services sector, the subsector of transportation, auxiliary transportation services and mailing activities (29.9%), whereas among big companies, in this economic variable, the services segment was in the first position (42.4%).   

 

Big companies have higher average salaries than the total of companies in five of the seven subsectors: information services (9.4 minimum wages versus 6.3 minimum wages); real estate activities and rent of goods and real estate (4.2 minimum wages versus 2.6 minimum wages); transportation, auxiliary services to transportation and mailing activities (4.1 minimum wages versus 3.2 minimum wages); services of maintenance and repair (3.9 minimum wages versus 1.8 minimum wages) and services rendered to families (2.3 minimum wages versus 1.5 minimum wages). In the subsectors services rendered to enterprises and other service activities, the average salary was practically the same for the total of companies and for big companies, approximately 2.3 minimum wages and 2.5 minimum wages, respectively.

Participation of net operating revenue of service companies increased between 2000 and 2006

 

The analysis of PAS showed that, between 2000 and 2006, the participation of the net operating revenue of big companies of the services sector increased from 51.9% to 54.7%, as well as their value added (from 48.5% to 50.7%) and number of employed persons (from 37.1% to 39.3%). The number of companies (0.3%) and salaries, withdrawals and other compensation (about 49.6%) remained stable in this comparison.

 

The average size of service companies, measured by the average of .persons employed by company, increased 13.8%, having changed from 922 persons employed, in 2000, to 1,050, in 2006. Two subsectors had increase of the average size of companies above the rate for the total of big companies: services rendered to companies (increase of 23.8%) and services rendered to families (increase of 15.0%). On the other hand, two subsectors had reduction of the average size of companies – information services (with reduction of -10.7%) and services of maintenance and repair (with reduction of -25.7%).

 

In comparison with 2000/2006, the subsector of services rendered to enterprises of big companies had increases in all the economic variables – value added (from 17.2% to 26.3%), net operating revenue (from 12.6% to 18%), and remained as the leader in terms of employed persons (from 46.8% to 53.1%), as well as in the number of companies (from 45.2% to 47.1%), and became the leader in terms of salaries, withdrawals and other compensation (from 28.9% to 36.1%).

 

Big companies of the subsector of information services and of transportation, auxiliary services to transportation band mailing activities had, in this period, decrease of participation in almost all the economic variables: value added (from 42.1% to 37.1% and from 33.7% to 29.9%, respectively), net operating revenue (from 45.7% to 42.2% and from 34.1% to 32.8%), employed persons (from 8.9% to 7.4% and from 33.1% to 28.0%) and salaries, withdrawals and other compensation (from 23.9% to 20.7% and from 38.3% to 34.5%). In relation to the number of companies, there was decrease of participation of transportation, auxiliary services to transportation and mailing services, from 37.1% to 33.8%, but there was slight increase in the segment information services, in this category, from 6.3% to 6.7%.

 

In spite of its participation, the subsector of big companies of maintenance and repair had the main decreases in the period 2000/2006, due to the big number of companies which left this activity and changed their economic classification of economic activity. The value added of this subsector fell by half, having changed from 1.2% to 0.6%; the participation of the net operating revenue fell from 2.6% to 0.5%; of employed persons from 0.5% to 0.4%, and of salaries, withdrawals and other compensation, from 1.9% to 0.4%.

 

Between 2000 and 2006, the ranking of productivity of big companies by subsector remained unchanged for the first and second positions (information services and maintenance and repair services, respectively). The subsector of transportation, auxiliary transportation services and mailing activities, which occupied the third position in 2000, fell to the fourth position and was surpassed, in 2006, by the subsector of real estate activities and rent of goods and real estate. With better positions featured: other service activities (which changed from the 6^th to the 5^th  position) and services rendered to enterprises (which changed from the 7^th to the 6^th position). Services rendered to families fell from the 5^th to the 7^th position.

 

Hiring and supply of temporary manpower stimulated the participation of big companies in the group of services rendered to enterprises between 2000 and 2006 

 

Due to the importance and the different performance, in the period 2000/2006, of the subsector of services rendered to enterprises, information services and transportation, auxiliary transportation services and mailing activities, PAS made and analysis of each one of them, as well as of the subsector of maintenance and repair services, which had several decreases, as previously mentioned, indicating changes in the profile of this economic activity.

 

The increase of participation of big companies in services rendered to enterprises, in the total umber of companies, between 2000/2006 was stimulated by the subsector of selection, contraction and location of temporary manpower, which had increase in all the economic variables: the number of companies changed from 7.1%, in 200, to 7.6%, in 2006, employed persons, changed from 68.0% to 78.0%. The biggest increase of participation occurred in salaries, withdrawals and other compensation 9+ 14.1 percentage points) and in value added (+ 13.5%).

 

In this comparison, investigation services, security, surveillance and transportation of values remained as the main employers (79.7%, in 2000, and 80.5%, in 2006); also leader of participation in salaries, withdrawals and other compensation (from 84.6% to 84.0%); value added (84.4% in both years); net operating revenue (from 84.3% to 80.0%) and number of companies (from 11.9% to 9.6%). The segment of cleaning services in buildings and households and other services rendered to enterprises. The subsector of cleaning services, in buildings and households and other services rendered to enterprises had the biggest changes in employed persons (+7.3 percentage points). In value added, the major increase was observed in the subsector of technical-professional services (+15.4%), whereas in net operating revenue, the main rise occurred in cleaning services in buildings and households (+15.5 percentage points).

 

In information services, for example, considering the participation of big companies in the total number of companies o this segment, between 2000 and 2006, the most significant activity was telecommunications, which, in spite of having faced reduction of the number of companies (from 2.0% to 1.7% and in value added (from 99.2% to 93.9%); had increases in employed persons (from 68.2% to 82.6%);; salaries, withdrawals and other compensation (from 86.1% to 87.9%) and in net operating revenue (from 91.3% to 94.4%). On the other hand, the reduced participation of big companies in the total number of information service companies resulted, mainly, by the activity computer science, which fell from 44.8% to 37.4%, in this variable.

 

In the subsector of transportation, auxiliary transportation services and mailing activities, there was decrease of participation of big companies in the total number of companies in all the variables (with decrease from 55.0% to 48.8% in employed persons), except in value added, which had slight increase between 2000/2006 (59.3% to 59.5%). This decrease resulted, above all, from the reduced participation of big companies of highway transport of passengers for all the variables considered, in 2000/2006, such as: value added (from 77.6% to 72.2%) and employed persons (from 74.1% to 69.9%). On the other hand, highway cargo and other types of transportation had increase of participation of big companies for all the variables, especially employed persons (from 22.2% to 23.8%) and salaries, withdrawals and other compensation (from 27.2% to 31.7%). The activity railway and subway transport presented the highest levels of participation of big companies, in 2006: 73.9% in number of companies; and, for the other variables, participation above 90.0%.

 

Among big companies, cleaning services in buildings and households had increase in all the economic variables

 

Focusing on big companies, cleaning services in buildings and households and other services rendered to enterprises had increase, in the period 2000/2006, in all the economic variables: value added (from 30.1% to 40.6%); net operating revenue (from 30,1% to 40.6%), employed persons (41.5% to 49.1%), salaries, withdrawals and other compensation (from 29.3% to 40.3%) and number of companies (from 37.5% to 40.1%).

 

The average size of big companies of services rendered to enterprises increased in all the activities, except in technical-professional services, which fell from 642 to 636 persons employed, on average. The main increase was observed in cleaning services in households and buildings and other services rendered to enterprises, which changed fro 1,058 to 1,446 persons employed on average (between 2000 and 2006), representing increase of 36.7% (above average for the total figure in the sector, which was 23.8%).

 

In the analysis of the participation of activities of information services in the total of big companies, it is important to mention that, in 2000 and 2006, computer science activities concentrated big companies in terms of number of companies (40.6% for 60.8%). In 2006, it took the leadership in terms of participation in persons employed (from 41.0% to 54.2%); salaries, withdrawals and other compensation (from 30.2% to 49.8%). The segment of telecommunications, in this period, in the total of big companies, remained as the leader; in spite of the decrease, it is still the leader in terms of value added (75.8% and 70.5%) and net operating revenue (77.1% and 72.5%).

 

In the subsector of transportation, auxiliary services to transportation and mailing activities, big companies which act in highway transport had minor participation, in both years, in all the variables; the highlight in this case was employed persons (from 68.7% to 63.8%). In this activity, the most important subsector is passenger transportation, which fell from 84.7% to 75.4%, in terms of persons employed, in this period.

 

Average size of big companies of air transport and mailing and other mailing activities had the biggest decreases in terms of average number of persons employed by company

 

In relation to the average number of persons employed by company, the highlight in information services was the reduction of the average size of companies of computer-science activities, in the period 2000/2006, having changed from 1,287 to 1,037. On the other hand, big telecommunication companies had increase of their average size, having changed from 1,588 to 1,792 employed persons by company, on average.

 

For transportation, auxiliary services to transportation and mailing activities, in this period, there was increase of the average size of companies for almost all the activities. However, the decreases of the average size of both sectors were also significant: air transport (which changed from 4,073 to 2,395 persons employed by company, on average) and mailing and other delivery activities (which changed from 12,193 to 7,541 persons employed by company, on average). 

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¹ Every company with 250 employed persons or over was considered as a big company in order to ensure international comparability. 

 

² Value added corresponds to the difference between the gross value of production and intermediate consumption. It expresses the value that the economic activity adds to goods and services consumed in their production process .