Between 2003 and 2007, the number of workers of the non-financial services sector increased from 6.4 million to 8.7 million, and the overall wages, from R$ 61.0 billion to R$ 106.8 billion. The worker’s average salary decreased from 3.2 to 2.5 monthly minimum wages, and the total expenses with workers¹ changed from 51.8% to 47.4% of value added in activities of the sector. During those years, cleaning services, feeding services and road transport were highlights in the increase of job offers. The number of workers in cleaning services was the one that most grew in the total sector, from 983.111 (15.4% of total) to 1,475,083 (16.9%), and the overall wages changed from R$ 6.3 billion (10.4%) to R$ 12.4 billion (11.7%). Conversely, in this activity of non-qualified labor force, the average paid salaries were below the average of the sector (2.2 minimum wages in 2003, and 1.7 minimum wages in 2007). In the same period, Feeding services changed from 14.9% of total employed persons (948,856) to 13.8% (1,204,380), with the lowest average salary in the sector (1.5 minimum wage in 2003, and 1.4 in 2007). The number of workers in Road transport increased from 944 thousand people (14.8%) to 1.2 million (14.4%), and the overall wages increased from R$ 9.1 billion (14.8%) to R$ 14.9 billion (14.0%).

Information came from the Annual Survey of Services (PAS) of IBGE, the main source of data on the structure of non-financial business services in the country, detailed by Federation unit, providing information on number of companies, employed persons, salaries, value added, and net operational revenue. PAS 2007 also analyzes employment and salaries in service companies for the total of Brazil, specifying them for each activity of the sector, Major Regions, and joining them in groups of activity and Federation units, by total of services. Information services and products, which comprise activities related to new communication and information technologies, were highlights in the survey, contributing with approximately R$ 150.5 billion, equivalent to 56.3% of net operational revenue of all the activities in “Suplemento Produtos e Serviços da PAS”. In 2006, that sector represented 56.5% of net operational revenue of all the surveyed activities.

 Among the service activities, the highest average salaries were found in sectors with low participation in the total of employed persons. In 2003, the highest salary belonged to news agencies and journalism services (15.4 minimum wages), which had the smallest participation in the overall wages of services. In 2007, the highest average monthly salary belonged to Water transport (9.0 minimum wages). Telecommunications services also stood out in relation to the average salary, being on second place during both surveyed years (14.3 minimum wages in 2003, and 8.7 in 2007). The lowest average remunerations in both years were those of feeding services (1.5 minimum wage in 2003, and 1.4 in 2007); services of maintenance and repair of personal objects (1.6 in 2003, and 1.4 in 2007); and vehicles (1.6 in 2003, and 1.5 in 2007).

From 2003 to 2007² all service activities, except Auxiliary services to agriculture, of low salary average and whose average salary grew from 1.6 to 1.9 minimum wages, recorded a fall in the average salary. Salary readjustments in services were, on average, below those in the minimum wage, and the fall was more significant in the activities with higher remunerations, like telecommunications and news agencies. The main decrease on average remuneration (15.4 minimum wages in 2003, and 7.6 in 2007) took place in News agencies and journalism services, with few acting companies in the market.

São Paulo absorbs the biggest number (36.5%) of service workers in the country

According to the survey of IBGE, the Southeast Region continues to be responsible for the major part of salaries, withdrawals, and other remunerations, and for the population employed in services. This region enlarged its proportion of overall wages, from 66.3% in 2003 to 66.9% in 2007. In 2003, the region absorbed 59.2% of the number of persons employed in services, increasing it to 61.0% in 2007. Regions South and Northeast, that together represented 30.7% of employed persons in 2003 (1,960,023), reduced their participation to 29.3% in 2007 (2,552,713). In 2003, those regions paid 24.6% of salaries (R$ 15.1 billion) of this segment, changing to 24% in 2007 (R$ 25.7 billion).

Between 2003 and 2007, São Paulo concentrated the major part of the country’s employed persons in services (33.1% and 36.5%, respectively), and was responsible for the major part of salaries, withdrawals, and other remunerations (41.3% in 2003, and 42.6% in 2007). It also had the highest average remuneration in 2003: 4.0 minimum wages in view of a national average of 3.2 minimum salaries; in 2007, 3.0 minimum wages were paid in view of a national average of 2.5. The Federal District, which reached an average of 3.8 minimum wages in 2003, also presented 3.0 minimum wages in 2007. Another highlight, Rio de Janeiro, the second place for both years in relation to employed persons (13.9% in 2003, and 12.6% in 2007) and to overall wages (16.2% in 2003, and 14.8% in 2007), presented one of the highest average salaries of the sector: 3.8 minimum wages in 2003, and 3.0 in 2007. Minas Gerais was the third place regarding employed persons (10.3% in 2003, and 9.8% in 2007) and overall wages (7.5% in 2003, and 8.0% in 2007), although with a salary average (2.3 minimum wages in 2003, and 2.1 in 2007) below the national average of services.

On the other hand, the states that had a smaller concentration of manpower and salaries, withdrawals and other remuneration of services in 2003 and 2007 belong to the North Region (Acre, Roraima, Amapá and Tocantins). Piauí, in the Northeast Region, had the lowest average salary of services: 2.0 minimum wages in 2003, and 1.6 in 2007.

Services rendered to companies accounted for the biggest number of workers in 2007

The Annual Survey of Services³ also brings information about companies that act in seven segments: services rendered to families; information services; services rendered to companies; transportation, auxiliary services to transportation and mailing activities; real estate activities, and rent of real estates and goods; maintenance and repair services; and other service activities. In 2007, the 1,001,922 companies of the non-financial services sector generated R$ 580.6 billion in net operational revenue, and R$ 326.2 billion in value added, employed 8.7 million people, whose salaries, withdrawals and other remuneration amounted R$ 106.8 billion. In the same year, Services rendered to companies were responsible for the major part of salaries and for employed persons, reaching R$ 35 billion in salaries, withdrawals and other remunerations (32.5% of total) and 3,191 thousand workers (36.7%). The sector Transportation, auxiliary services to transportation and mailing activities contributed with 27.1% of overall wages (R$ 29.0 billion) and 21.9% of job positions (1.9 million).

Still according to the survey of IBGE, Services rendered to families (Lodging services, Feeding services, Recreational and cultural activities, and Activities of continued education) presented the biggest number of companies: 327,107, what represents 32.6% of total. The participation of the segment Services rendered to companies is also significant, with 22.9% of all service companies (228,958). The segment Transportation, auxiliary services to transportation and mailing activities had the major part of the net operational revenue of the sector, R$ 165.6 billion (28.5%). Other highlights were Information services, 27.9% (R$ 162.2 billion) and Services rendered to companies, 23.1% (R$ 133.7 billion). The revenue of those three segments represented almost 80.0% of net operational revenue of the services sector in 2007.

The activities Services rendered to companies had major contribution to value added⁴, 30.0% of total (R$ 98.0 billion), generating a high gross value of production (R$ 133.9 billion) in face of intermediate consumption (R$ 36.0 billion). Information services (24.3% of total, or R$ 79.3 billion), and Transportation, auxiliary services to transportation and mailing activities (23.5% of total, or R$ 76.6 billion) also stood out in value addition.

In 2007, services rendered to families employed, on average, six people by company

In Services rendered to families, the main participation came from small and medium companies acting in activities aimed at the final consumer. Feeding services offered the major contribution to revenue, salaries, employed persons, and number of companies. In 2007, the 227,428 companies of this activity (69.5% of total) generated R$ 34.5 billion in net operational revenue (64.0%), employed 1.2 million people (64.2%), and paid R$ 8.2 billion (60.2%) in salaries, withdrawals and other remunerations. In the same year, Services rendered to families employed, on average, six people by company. Lodging companies presented the highest average of the segment: 11 employed persons by company.

For the indicators of average monthly salary and productivity, Recreational and cultural activities presented results above average. Whereas the average monthly salary of the segment was 1.5 minimum wage, this activity paid a monthly average salary of 1.8 minimum wage, and each worker added R$ 27.5 thousand, in view of a productivity of R$ 15.2 thousand for the total of services rendered to families.

 In 2007, the activity Telecommunications was a highlight in Information services

In Information services (Telecommunications, Computer science activities, Audiovisual services, and News agencies and journalism services), the activity Telecommunications, comprising big companies intensive in capital, was responsible for the major part of net operational revenue, R$ 100.8 billion (62.2%). Regarding the total segment, the activity Telecommunications presented higher indicators: in 2007 the average for Information services was eight employed persons by company; for the activity Telecommunications this average increased to 40. Each worker of the segment added R$ 134.9 thousand of value, whereas those of telecommunications companies presented average productivity of R$ 423.8 thousand. Information services paid an average monthly salary of 5.9 minimum wages, in view of an average remuneration of 8.7 minimum wages for the activity Telecommunications.

Computer science also stood out, with the biggest number of companies, employed persons and salaries, withdrawals and other remunerations. In 2007 that activity amounted 82.5% (58,627) of the Information services companies, 62.5% of employed persons (367,619), and paid 55.1% (R$ 9.2 billion) of salaries, withdrawals and other remunerations. Computer companies generated R$ 38.5 billion of net operational revenue (23.8% of total) in 2007.

During 2006 and 2007, Information services represented 56.3% and 56.5%, respectively, of the net operational revenue of all the activities that integrate the Supplement Products and Services of PAS. In 2007 those services and products generated R$ 150.5 billion of net operational revenue. In this group, in 2007, telecommunications generated R$ 99.5 billion of net revenue, the main of the sector of Services as a whole (17.4%) and of Information services that are part of PAS Supplements⁵ (66.1%). In 2006, the activity telecommunications represented 65.6% of Information services.

In the ranking of information activities of PAS Supplement of Products, in 2007, 12 of the 20 products of major participation in revenue belonged to the activity telecommunications. First are the Interconnection services of mobile telephony, with approximately R$ 13.5 billion (9.0%) and the services of fixed-fixed telephony (local, interurban, and international calls, and calls generated in public telephones), with R$ 13.5 billion (9.0%). Mobile telephony gained importance, leaving the third position in the ranking of highest revenues of Information services in 2006 to the first position in 2007, defeating the leader services fixed-fixed telephony. Also in higher positions are post-paid mobile telephony services, going from fourth to third place.

In 2007 the activity Road transport had major participation in the group

In 2007 the activity Road transport, which encompasses both passenger transportation (urban and interurban) and cargo transportation, had the main participation on net operational revenue, overall wages, employment and number of companies in the group transportation in general. The 94 of the 717 companies of this activity (71.4%) generated R$ 88.0 billion of net operational revenue (51.8%), paid R$ 15.0 billion in salaries, withdrawals and other remunerations (51.8%), and employed 1,255 thousand people (65.8%).

In the activity Road transport, cargo transportation had, in 2007, the major part of number of companies (66,519) and net operational revenue (R$ 56.3 billion). Passenger transportation was responsible for most employed persons (645,176) and salaries, withdrawals and other remunerations (R$ 7.8 billion).

The activities Railway and subway transport, and water transport, formed by a small number of companies, stood out for having presented high indicators of productivity, average salary and average of employed persons by company in relation to the average of the segment. In 2007, Railway and subway transport presented productivity of R$ 122.9 thousand and an average of 1,949 persons employed by company, whereas the segment presented average productivity of R$ 40.2 thousand, and average of 14 employed persons by company. The companies of Water transport paid the highest average monthly salaries, 9.0 minimum wages, followed by those of Air transport (8.1 minimum salaries). The average monthly salary of the segment was 3.1 minimum wages.

In 2007, transportation companies generated more R$ 17 billion of revenue than in 2006, changing from R$ 148.7 billion to R$ 165.7 billion. The companies of railway and subway, water, and air transport decreased participation in total revenue of the sector from 2006 to 2007. According to the PAS Supplement 2007, railway and subway transport represented 7.7% of revenue in the transportation sector (versus 8.0% in 2006), and water transport services accounted for 8.6% of revenue in the sector transportation (versus 8.9% in 2006). Air transport services, analyzed in the Supplements, presented a more significant fall in participation on the total revenue, generating 14.9% of revenue in the sector Transportation in 2007, in view of 17.2% in 2006. The main service of this segment was passenger transport in regular national domestic lines, what represented 49.7% of revenue in 2007.

Services of investigation, security, surveillance and transportation of values employed, on average, 130 persons by company

In 2007, in the segment Services rendered to companies, Technical-professional services (consulting, publicity agencies, offices of law and accountancy, engineering and architecture services) represented 55.5% (127,044) of companies, accounted for 51.8% (R$ 69.1 billion) of net operational revenue and 34.0% (R$ 11.8 billion) of salaries, withdrawals, and other remunerations. This activity, which has as characteristics small companies with qualified manpower, presented the lowest average of employed persons by company (five people in view of an average of 14 in the segment) and stood out in relation to productivity and average salary. Each person employed in this activity added, on average, R$ 76.8 thousand versus an average of R$ 30.7 thousand in the segment. This service paid an average monthly salary of 3.8 minimum wages, in view of an overall average of 2.2 minimum wages.

Most of the persons employed and the overall wages of services rendered to enterprises in 2007 were in the activity cleaning services in buildings and households. This activity employed 1,475 thousand people (46.2%), paid R$ 12.4 billion (35.9%) in salaries, withdrawals and other remunerations, and generated R$ 41.4 billion of net operational revenue (30.9%).

As to the average of employed persons by company, two activities stood out in 2007: the Services of investigation, security, surveillance and transportation of values, which employed, on average, 130 persons by company; and the Services of hiring and supply of temporary manpower, with an average of 121 employed persons by company.

Auxiliary financial services stand out in the segment Other activities

The segment Other services activities comprises Auxiliary agricultural services, Trade and commercial representation agents, Auxiliary financial services, insurance and complementary security, Urban cleaning and sewage. In 2007 the activity Trade and commercial representation agents contained most of the companies in the segment, 67.5% of total (63,528) and was responsible for 26.1% of revenue (R$ 8.5 billion).

Most of the net operational revenue and overall wages were generated in Auxiliary financial services: R$ 15.1 billion (46.2%) and R$ 2.9 billion (44.6%), respectively. The activity Urban cleaning and sewage accounted for most of the employed persons: 32.9%, 157,825 people.

In 2007, the segment Other service activities employed, on average, five people by company, paying an average monthly salary of 2.8 minimum wages and reaching an average productivity of R$ 48.9 thousand. The companies of Urban cleaning and sewage stood out, with the highest average of employed persons (71 persons by company). The main indicators of average monthly salary (5.2 minimum wages) and productivity (R$ 93.5 thousand) were found in Auxiliary financial services, insurance and complementary security.

_____________________

¹ Expenses with workers are formed by salary, withdrawals and other remunerations; contributions to social security, severance pay indemnity fund,and private pension; dismissal compensation and benefits granted to workers.

² This does not mean a decrease in salaries. PAS shows that between 2003 and 2007, average nominal wages increased in practically all activities of services. The indicator of average salary in minimum wages decreased, however, because salaries of the sector did not reach the same re-composition given to the minimum wage.

³ The correct layer encompassed 43,745 companies (4.4% of total) responsible for 76.1% of net operational revenue (R$ 442.0 billion), 70.8% of value added, 72.8% of overall wages, and 60.6% of job places.

⁴ Value added corresponds to the difference between gross value of production and intermediate consumption (production expenses).

⁵ PAS Supplements are applied to companies with 20 or more employed persons.