In 2006, according to IBGE’s Central Register of Enterprises, there were 5.7 million enterprises registered in the National Directory of Legal Entities (CNPJ), with increase of 1.0% in relation to 2005. Among these enterprises, 89.9% were companies, 0.3%, organizations of public administrations and 9.9%, non-profit organizations. They employed a total 41.4 million persons (4.6% more than in 2005), being 82.6% salaried persons and 17.4% partners or owners. Compared to 2005, there was increase of 0.6% in the number of salaried persons and decrease of 1.9% in the number of partners of owners. The companies employed 72.9% of the total persons employed, versus 20.1% in public administration and 7.0% in non-profit organizations. 

 

In 2006, according to IBGE’s Central Register of Enterprises (CEMPRE), a total R$ 536.9 billion were paid in salaries and other compensation, and the average salary was R$ 1,208.64. There was real rise of 10.5% compared to 2005, when the average monthly wage was R$ 1,093.80¹. From 2005 to 2006, the volume of salaries had real average increase of 17.2%, with public administration (27.2%) as the main highlight, followed by non-profit organizations (16.5%) and companies (12.5%).

 

Number of workers in public administration increased 7.5% in 2006

 

Between 2005 and 2006, public administration had the biggest increase in terms of total employed persons (7.5%), whereas business enterprises and non-profit organizations increased 3.8% and 4.0%, respectively. In relation to the salaried employed persons, companies rose by 5.7% and non-profit organizations, by 4.7%².

 

In 2006, although big companies (with 250 or more persons employed) represent only 0.3% of the overall number of enterprise, they accounted for over half of the salaried employed persons (54.6%) and for over two-thirds of salaries and other compensation (70.0%). However, the subgroup of companies with 1,000 or more persons employed (3,566 units or 0.1% of the total) accounted for over one third of the salaried employed persons (38.1%) and for over half of the salaries and other compensation (53.6%).

 

The average monthly salary (in average minimum wages³) was also higher in the biggest companies. Whereas the average monthly salary for the total Register was 3.6 average minimum wages, the average monthly salaries for big companies and for the subgroup of companies with 1,000 persons or more were, respectively, 4.6 and 5.0 average minimum wages.

 

Public administration has biggest participation in number of workers

 

IBGE’s CEMPRE also shows the relevance of public administration among companies and other bigger organizations. In 2006, public administration accounted for only 0.3% of the overall number of enterprises and other organizations, but its participation was only 28.8% in the group of units with 250 or more persons employed and 34.1% in the subgroup with 1,000 or more persons employed. Non-profit organizations did not have significant changes in participation according to their size, registering 9.9% of participation in the total of CEMPRE and 8.4% of participation in the subgroup with 1,000 or more persons.

 

The relevance of public administration can also be analyzed in the distribution of employed persons by size and by legal nature. Of the total persons employed in CEMPRE, the participation of public administration was one-fifth (20.1%). In big companies and other organizations this participation was 41.7%, and in the subgroup with 1,000 or more, public administration had almost half of the total employed persons (47.3%).

 

Older companies employ more persons

 

Of the total companies and other enterprises, 92.1% had less than 10 employed persons and 39.0% had existed for up to 5 years. However, over half of the companies (59.4%) had existed for up to 9 years.

 

Among big companies the situation was quite different: 44.9% of the companies with 250 or more persons employed and 54.0% of the subgroup with 1,00 or more persons employed were in the group aged over 30 years. 

 

From 2000 to 2006, the average salary had real increase of 5.6%, but fell from 5.0 to 3.6 minimum wages

 

From 2000 to 2006, the real average monthly salary⁴ recovered in all the types of analyses. The total average salary of CEMPRE presented the major recovery in the period (5.6%). The average salary in big companies and other enterprises increased 3.8% and in the subgroup with 1,000 or more persons employed, 4.1%.

 

The highest average monthly salary in 2006 was that of the subgroup with 1,000 or more persons employed (R$ 1,700.75), followed by big companies as a whole (R$ 1,550.56) and then by the total of CEMPRE (R$ 1,208.64). The average monthly salary of CEMPRE was affected by the average monthly wage of smaller enterprises (with 0 to 249 persons employed) which was R$ 797.65.

 

Measuring in terms of average minimum wages⁵, the average salary in companies and other enterprises in CEMPRE fell from 5.0 to 3.6 average minimum wages, in the period. The phenomenon was equally observed not only in companies (from 4.7 to 3.2 average minimum wages), but also in non-profit organizations (from 4.7 to 3.5 average minimum wages) and in public administration (from 6.0 to 4.7 average minimum wages). However, from 2005 to 2006, there was slight recovery in public administration (from 4.6 to 4.7 average minimum wages).

 

This reduction in minimum wages was slightly bigger in big companies and other enterprises (from 6.5 to 4.6 average minimum wages). In the subgroup of companies with 1,000 or more persons employed this reduction was from 7.1 to 5.0 average minimum wages. 

 

 

In 2006, 82.6% of the companies had up to four workers

 

Of the total of companies, about 82.6% had from 0 to 4 persons employed and 0.3% had at least 250 persons employed; the latter group employed 54.6% of the salaried persons.

 

In companies with up to four persons employed, the number of salaried persons is usually lower than the number of partners and owners. In 2006, the number of persons employed in this group made up 16.6% of the total of CEMPRE, being only 4.65 of the total salaried persons.

 

In 2006, there were, on average, seven persons employed by company and other organizations, being the highlight the activities Production and distribution of electricity, gas and water, with 106 persons employed by company, on average, and the activities of Public administration, defense and social security, with 511 persons.

 

In the group of big companies and other organizations and the subgroup with 1,000 or more persons, it is worth mentioning the activities of Financial mediation, insurance, complementary social security and related services, with the highest averages in the period analyzed (2,945 and 8,508 persons employed, respectively).

 

It is worth mentioning that, among the overall number of active companies in 2006, 71.4% were concentrated in the following economic segments: trade (48.0%), real estate activities (14.1%) and industrial activities, represented by Manufacturing industry, with 9.3% of the companies.

 

Southeast concentrates over half of the salaries persons and of the salaries paid

 

In 2006, the 5.7 million companies and other organizations had 6.1 million local units. About half of them (50.5%) were located in the Southeast. The South Region concentrated less than half of the local units in the Southeast (23.3%), followed by the Northeast (15.6%), Central West (7.1%) and North (3.5%).

 

About 6 million local units (97.4% of the total) were formed by small and medium-sized companies and other organizations, whereas only 2.6%, or 158.6 thousand, by big ones. The Southeast concentrated about half of the local units: 50.5% of the small and medium-sized companies, and 51.0% of the big ones.

 

Over half of the salaried employed persons and salaries (51.5% and 56.6%, respectively) were concentrated in the Southeast Region. The South Region, in second place, had a little more than one-third of the participation of the Southeast Region in salaried employed persons, 18.1%, followed by the Northeast Region, with 17.6%.

 

In four of the five regions, the participation of salaried persons in big companies and other organizations was bigger than in small and medium-sized ones. The exception was the South Region, with equivalent relative levels of participation.

 

The Southeast concentrated 56.6% of the salaried paid, whereas the South Region, in second place, had 16.4%. The units of big companies and other organizations accounted for 70.0% of the salaried paid in the year, of which 38.7% were paid by units located in the Southeast Region. Whereas in the South, the average salary in big companies was 4.3 minimum wages, on average, in the Northeast Region, it was 3.1 minimum wages, on average, a difference of 38.7%.

 

Highest salaries were paid in the Central West

 

The average monthly salary paid by companies and other organizations, in 2006, was 3.6 average minimum wages (R$ 1,208.64).The highest salary was paid in the Central west Region, 4.4 average minimum wages, whereas the lowest one was paid in the Northeast, 2.6 average minimum wages. The southeast regions had the second higher average monthly salary, of 3.9 minimum wages. The North and South Regions had similar average monthly salaries, of 3.2 and 3.3 average minimum wages, respectively.

 

The lowest monthly salary was paid in the units of small and medium-sized companies of the Northeast region (1.7 average minimum salary), and was 52.8% below the average salary in the country and 29.9% below the average salary of small and medium-sized companies and other organizations. The highest salary was paid by units of big companies in the Central west (6.0 average minimum wages) and was 66.7% above the average salary in the country and 30.45 above the average salary of big companies. The bigger salary difference between units of small and medium-sized companies and other organizations and the big ones occurred in the Central West (172.7,0%), and the lowest one, in the Northeast (82.4%).

 

One in each five salaried persons belongs to the segment Public administration, defense and social security

 

Public administration, defense and social security was the main economic activity employing salaried persons (22.6%), followed closely by Manufacturing industry (19.5%) and by Trade (18.2%). Real estate activities, rents and services rendered to enterprises appeared in fourth place (11.0%). The distribution by area, however, does not follow the national distribution. In the North, Northeast and Central West Regions, Public administration, defense and social security had much more relevance than shown at national level, encompassing 37.5%, 34.9% and 33.2% of the salaried employed persons, respectively.

 

In these areas, as in the other ones, Trade was the second activity in terms of employment of salaried persons, followed by Manufacturing industry. This represents an opposite situation compared to the positions at national level. In the South and Southeast Regions, on the other hand, Manufacturing industry employed the biggest number of salaried persons, 28.3% and 20.3%, followed by Trade, whereas Public administration, defense and social security featured in third place only.

 

From 2000 to 20006, economic scenario favored all segments equally

 

The analysis of companies shows there weren’t significant changes in the structure of companies as a whole in the period. The benefits which came from the positive economic scenario reached all the companies in a balanced way. The participation of the number of companies remained stable in the period, for both the group of big companies and the subgroup with 1,000 or more persons employed. In relation to the employed persons, total and salaried, there were very little significant increases in participation of both segments analyzed. The highlight was salaried employed persons in the subgroup of companies and other organizations with 1,000 or more persons employed, whose participation increased by 0.9 percentage points, changing from 37.2% to 38.1%.

 

There was increase of participation in the activities of Trade, repair of automotive vehicles, personal and domestic objects, Real estate activities, rents and services rendered to enterprises and Public administration, defense and social security, whereas in Manufacturing industry and Transportation, storage and communication, the participation was reduced in both types of size of companies analyzed.

 

In Manufacturing industry, from 2000 to 2006, there was not change in the participation of employed persons in big companies but, for the ones with 1,000 or more persons employed, there was increase of 1.4 percentage points. Public administration, defense and social security, despite the increase of participation in the number of big-sized units, reduced its participation in employed persons in big companies and other organizations (1.8 percentage points) and in the subgroup with 1,000 or more persons employed (4.0 percentage points).

 

Trade, repair of automotive vehicles, personal and domestic objects and the Real estate activities, rents and services rendered to enterprises were the segments with increases in participation, in terms of both salaries persons and salaries paid. The highlight was Real estate activities, rents and services rendered to enterprises, in the segment of big companies and other organizations, whose participation in salaried employed persons increased by 2.1 percentage points. Public administration, defense and social security decreased by 1.4 percentage points in participation of salaried employed persons, but, on the other hand, the salaries paid increased 3.4 percentage points. In Transportation, storage and communications and in Other collective activities, there was reduction of participation, both in terms of salaried persons and salaried.

 

In the subgroup of companies and other organizations with 1,000 or more persons employed, it is important to highlight the increase of participation of Real estate activities, rents and services rendered to enterprises (3.0 percentage points and 1.4 percentage points in employed persons and in salaries, respectively). The activity Manufacturing industry increased its participation in salaried persons by 1.3 percentage points, but in terms of salaries paid, it remained practically unchanged, remaining at 18.3%. The decrease in the participation of salaried employed persons in Public administration, defense and social security was even more significant: 4.1 percentage points, although in terms of salaries it increased by 2.6 percentage points.

 

Participation of big mining and quarrying companies in terms of employed persons increases

 

Big companies and other organizations of Mining and quarrying industry were the highlights in the increase of participation in terms of salaried employed persons: 13.5 percentage points, followed by Construction, with increase of 9.6 percentage points. The latter also had the major increase in participation in salaried paid: 9.8 percentage points. The most significant decrease occurred in Other collective, social and personal services: 8.6 percentage points.

 

Considering the subgroup with 1,000 or more persons employed, companies and other organizations of Mining and quarrying industry also had the biggest increases in participation of salaried employed persons (12.2 percentage points), followed by the activity Health and social services, with increase of 9.0 percentage points. The most significant decrease occurred in the activity Education: 3.6 percentage points. As for salaries, the activity Health and social services was the one to have the highest increase in participation: 11.3 percentage points, followed by the activity Construction, with increase of 8.6 percentage points.

 

In relation to the activities with biggest participation in salaried employed persons, the highlight was Manufacturing industry, with participation increase of 4.1 percentage points.

 

If measured in terms of minimum wages, the average monthly salary decreased in almost all the activities, in the period analyzed and for the two types of size. The exception was Fishing, of which average monthly salary remained practically unchanged in this period of two years. This overall decrease can be seen as a consequence of the rise of the minimum wage, which affected all the sectors of economy.

 

Between 2000 and 2006, there was increase of participation of salaried employed persons in the North, Northeast, South and Central west Regions, in these two segments of size. The Southeast had the most significant reductions (about 2.0 percentage points). The regions which had the biggest increases in participation of employed persons were the North and Northeast, with changes between 1.0 and 1.2 percentage points in the two segments analyzed, and the South Region, in the subgroup of companies and other organizations with 1,000 or more persons employed: 1.0 percentage points.

 

Few changes were observed, by Federative Units, in the participation of salaried employed persons in the local units of big companies and in the subgroup of companies with 1,000 or more persons employed. The main decreases occurred in the Federal district, São Paulo and Rio de Janeiro. Increases, on the other hand, were less concentrated. In the segment of big companies, the highlights were Amazonas, with 0.5 percentage points and Pará and Bahia, with 0.4 percentage points    For companies and other organizations with 1,000 or more persons employed, the main highlights were Rio Grande do Sul, with 0.6 percentage points, Amazonas, with 0.5 percentage points and Ceará and Goiás, with 0.4 percentage points for each one of the states.

 

In big companies, there was decrease of participation in salaries in the Southeast (-3.5 percentage points) whereas in the South Region, participation increased only 0.4 percentage points. In the other ones, there was increase of about 1.0 percentage points.

 

Concerning salaries, between 2000 and 2006 in Federative Units, the main decreases, in both segments occurred in São Paulo (2.8 percentage points and 2.7 percentage points, respectively) in big companies and in the subgroup of companies with 1,000 or more employed persons, followed by Rio de Janeiro, with decrease of 0.7 percentage points, respectively.

 

Pernambuco faced reduction of participation by 0.4 percentage points in both groups. The main increases occurred in the segment of big companies and other organizations. For the subgroup with 1,000 or more persons employed, the highlights were Goiás and Amazonas, with 0.5 percentage points each state and Bahia and Rio Grande do Sul, with 0.4 percentage points each.

 

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¹ The average monthly salary was indexed by IPCA, having year 2006 as reference. The accumulated change in the period was 3.1%.

 

² In public administration, the difference between employed persons and salaried employed persons was 0.01%, in 2006.

 

³ The average monthly salary is the sum of monthly values of the minimum wage throughout the year, divided by 12. In 2006, the average minimum wage was R$ 337.50.

 

⁴ IPCA was used as an indexer of average salaries of years 2000 to 2005, having year 2006 as reference. The change accumulated between December 2000 and December 2006 was 55.3%. Indexers: 1.55 for 2000, 1.44 for 2001, 1.28 for 2002, 1.17 for 2003, 1.09 for 2004 and 1.03 for 2005.

 

⁵ Average minimum wage: R$ 147.25, in 2000; R$ 172.75, in 2001; R$ 195.00, in 2002; R$ 230.00, in 2003; R$ 253.33, in 2004; R$ 286.67, in 2005 and R$ 337.50, in 2006.

 

⁶ In the analysis by area, local units were selected base don their size, considering the total number of persons employed by company. Therefore, units of big companies refer to companies with 250 or more persons employed.