In 2007 there was an increase of 2.7% in the number of formal active companies...

In 2007 there was an increase of 2.7% in the number of formal active companies and other organizations at the Central Register of Enterprises (Cempre), with a balance of 115 thousand more than in 2006, changing from 4.3 million to 4.4 million. This group of more than 4 million enterprises and other organizations employed 42.6 million people, being 36.7 million salaried. The total salaried employed persons increased by 7.5% between 2006 and 2007, changing from 34.1 million to 36.7 million people, what represents 2.6 million salaried persons more. Wages and other compensations paid in the year expressed, as a whole, R$ 603 billion. The average monthly salary was R$ 1,282.11¹, what means a real raise of 1.9% in the comparison with 2006². In the publication of 2007 Cempre Statistics, for the first time IBGE presents information organized according to the new version of the National Classification of Economic Activities (CNAE 2.0)

Trade, repair of automotive vehicles and motorcycles represented 46.0% of companies and other organizations

For the number of companies and other organizations, Trade, repair of automotive vehicles and motorcycles was responsible for almost half active organizations in the year (46.0%), followed by Manufacturing industry, with 9.0%, and Other service activities, with 7.9%. Those three sections together were responsible for 62.9% of the total number of active companies and other organizations in the year (table 7).

Chief participations on employed persons came from Trade, repair of automotive vehicles and motorcycles (22.0%); Public administration, defense and social security (18.5%); and Manufacturing industry (18.4%).

In relation to salaried employed persons, and to salaries and other compensations, the same sections stood out, but in another order, because Trade changes first place in total employed persons for third place in the variables salaried employed persons and salaries and other compensations. Public administration, defense and social security appear in first place, absorbing 21.5% of salaried persons and 28.1% of overall wages, followed by Manufacturing industry, with 19.8% and 21.1%, respectively, and Trade, repair of automotive vehicles and motorcycles, with 18.0% and 10.9%, respectively. In 2007, those three activities were together responsible for 58.8% of total employed persons, 59.2% of salaried employed persons, and 60.1% of overall paid wages.

Construction was the main growing activity for salaried persons and for overall wages

The group Construction stood out, with variations of 17.3% in total employed persons, 18.5% in salaried employed persons, and 14.3% in salaries and other compensations. International organizations and other extraterritorial institutions had the second major increase in total employed persons (13.4%), and Education had the second major increase of salaried employed persons (12.2%), and in salaries and other compensations (13.3%).

Average size of the companies and other Brazilian organizations was 9.6 employed persons

In eight out of 20 analyzed sections, company size is characterized by the presence of companies with 0 to 9 employed persons. In this case, we can highlight the sections Other service activities, with 4.0 employed persons; Art, culture, sports and recreation, with 4.3 persons; Real estate activities and Professional, scientific and technical activities, with 4.5 persons each; and Trade, with 4.6 persons, among others.

By contrast, in two sections companies presented average size relative to enterprises of 50 to 249 persons, and of 250 or more employed persons, namely: Electricity and gas, with 107.9 employed persons, and Public administration, defense and social security, with 545.2 employed persons.

Bigger-sized enterprises pay higher average salaries and absorb 55.1% of salaried persons

In 2007, the average monthly wage corresponded to 3.4 minimum wages³, and the bigger the enterprise the higher the average paid wage. While companies with 250 or more employed persons paid 4.4 monthly average minimum wages, those with 0 to 9 employed persons paid 1.8 monthly average minimum wage.

In 2007, 55.1% salaried persons were absorbed by companies with 250 or more employed persons, whereas 29.6% were absorbed jointly by companies of 0 to 9 persons (11.5%) and of 10 to 49 employed persons (18.1%).

Sectors of Electricity and gas and Financial activities paid the highest average monthly wages

There was a great difference among paid salaries according to the sections of CNAE 2.0. In the section Electricity and gas, the average monthly wage was 10.4 minimum wages; in Financial activities, insurance and related services, 9.0 minimum wages; and in International organizations and other extraterritorial institutions, 7.7 minimum wages. Those salaries were 2.3 to 3.1 times higher than the national average.

Conversely, in the sections Agriculture, livestock, forestry, fishing and aquiculture, and Trade, repair of automotive vehicles and motorcycles, with 2.1 minimum wages each; Administrative activities and complementary services, with 2.0 minimum wages, and Lodging and feeding, with 1.6 minimum wage, paid salaries corresponded to 0.5 to 0.6 time of the national average. The difference between the highest and the lowest average monthly wage, in minimum wages, by section of CNAE 2.0, reached 6.5 times.

56.5% employed persons earned up to 3 average minimum wages

Considering the distribution of salaried employed persons by groups of average monthly minimum wages, we can observe that 36.0% salaried employed persons earned up to 2 average monthly minimum wages; 20.5%, from 2.1 to 3 salaries; 27.3%, from 3.1 to 4 salaries; and 16.2%, more than 4 average monthly minimum wages.

Among classes that paid the lowest salaries, up to 1.5 monthly minimum wage, are those related to the cultivation of grapes, tobacco and coffee; retail trade of bakery products, beverages, produce, food products, footwear, among others; to services like cleaning in buildings and condominiums, hairdressers; fitness activities; and to industrial activities such as confection of clothing accessories and professional apparel.

Among CNAE classes that paid the highest salaries, 6.1 minimum wages or more, are those related to the financial sector, such as investment banks (32.9 minimum wages) and development banks (25.9 minimum wages; to the petroleum sector, such as petroleum refining (25.0 minimum wages) and basic petrochemical products (20.3 minimum wages); public administration such as international relations (28.6 minimum wages) and justice (16.5 minimum wages).

The Southeast concentrates more than half the salaried persons and paid salaries

The Southeast region concentrated more than half (51.2%) local units and employed persons (52.3%) in the country, followed by regions South (22.5% and 18.9%), Northeast (15.7% and 17.2%), Central West (7.2% and 7.7%), and North (3.4% and 4.9%). The distribution of salaried employed persons and salaries and other compensations was also concentrated in the Southeast (52.1% and 56.9%, respectively).

The Northeast was the second most important region in the absorption of salaried persons (17.6%), and the third in the participation of salaries and other compensations (12.9%), changing places with the South, third in salaried employed persons (17.3%) and second in salary participation (15.9%). Regions Central West (respectively 7.8% and 9.6%) and North (5.2% and 4.7%) presented the smallest participations in both variables.

Average monthly wages were higher than national average in the Central West (4.2 minimum wages) and Southeast (3.8 minimum wages). On the other side, the 3.2 average wages of the South, the 3.1 of the North, and the 2.5 of the Northeast were below average.

Public administration is a highlight in the North, Northeast and Central West

The section Public administration, defense and social security absorbed 38.7%, 32.3% and 29.8% salaried persons in the North, Northeast and Central West, respectively, being the most important section in those three regions. Trade, repair of automotive vehicles and motorcycles follows, with 16.9%, 16.2% and 18.3%, respectively. The section Manufacturing industry appears on third place, with 13.4%, 13.9% and 12.4% of salaried persons.

In the South and Southeast, the highlight was the section Manufacturing industry, with 28.4% and 19.6%, followed by Trade, repair of automotive vehicles and motorcycles, with 19.6% and 18.5%, respectively. In those two regions, Public administration, defense and social security was in third place, with 14.7% and 17.0%, respectively, of salaried persons.

São Paulo, Minas Gerais and Rio de Janeiro concentrate 50.3% employed persons

São Paulo, with 30.5% local units, 30.1% total employed persons and 29.8% salaried employed persons; Minas Gerais, with 11.1% local units, 10.5% total employed persons and 10.4% salaried employed persons; and Rio de Janeiro, with 7.7% local units, 9.7% total employed persons and 9.9% salaried employed persons were the main highlights by federation unit. Next come Rio Grande do Sul (9.5% local units, 6.8% total employed persons and 6.4% salaried employed persons) and Paraná (7.6% local units, 6.5% total employed persons and 6.2% salaried employed persons).

Compensations were higher in the Federal District (6.9 monthly minimum wages), 102.9% above national average. The second highest average monthly wage was paid in Roraima (4.2 minimum wages), followed by São Paulo (4.1 minimum wages). Amapá (4.0 minimum wages) and Rio de Janeiro (3.9 minimum wages) also present figures above national average, respectively 14.7% and 23.5%.

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¹ Average salaried persons were used for the calculation of average salary. See topic “Critérios para atribuição de valores de pessoal assalariado médio e salário médio mensal” in the section Technical notes.

² INPC was used as an inflator of 2006 average salary, having 2007 as the reference year. The accumulated change of the period was 5.16%.

³ The average value of the minimum wage in 2007 was R$ 373.08.