This report highlights the final results of the 2012 Census of Philippine Business and Industry for All Establishments classified under the three broad industry groups namely: Agriculture, Industry and Services. Agriculture sector includes Agriculture, Forestry and Fishing (sector A) while the Mining and Quarrying (B), Manufacturing( C), Electricity, Gas, Steam and Air-Conditioning Supply (D), Water Supply; Sewerage, Waste Management and Remediation Activities (E), and Construction (F) comprised the Industry sector.
On the other hand, the Services sector consisted of the Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles (G), Transportation and Storage (H), Accommodation and Food Service Activities (I), Information and Communication (J), Financial and Insurance Activities (K), Real Estate Activities (L), Professional, Scientific and Technical Activities (M), Administrative and Support Service Activities (N), Education (P), Human Health and Social Work Activities (Q), Arts, Entertainment and Recreation (R), and Other Service Activities (O).
Services sector dominates the economy; 3 out of 10 establishments in NCR
Total number of establishments across the country in 2012 reached 219,184 or 57.3 percent higher compared to 139,318 recorded establishments in 2006 CPBI. This can be translated to an average increase of 13,311 establishments per year.
By broad industry group, as shown in Figure 1, eighty-six percent of the total number of establishments in 2012 were engaged in the Services sector (188,502). It posted an accelerated growth of 62.1 percent from 116,305 establishments in 2006. The Industry sector with 28,221 establishments accounted for 12.9 percent of the total number of establishments in 2012 and grew by 33.7 percent from 21,112 establishments in 2006. Agriculture recorded 2,461 establishments or 1.1 percent share of the total. It increased by 29.5 percent from 1,901 establishments in 2006.
The ranks of these sectors remained the same in 2006 with Services getting 83.5 percent, Industry, 15.2 percent and Agriculture, 1.4 percent. A decrease in the number of establishments in the Agriculture and Industry sectors were noted, shifting these establishments to Services sector in 2012.
Across regions, 74,102 establishments or 33.8 percent were located in the National Capital Region (NCR). CALABARZON with 29,441 establishments or 13.4 percent ranked second followed by Central Luzon with 20,177 establishments or 9.2 percent.
Six out of ten work in Services; NCR reports bulk of employees
Industry-wide, total employment in 2012 grew by 52.9 percent to 5,423,954 from 3,547,822 workers in 2006. For the reference period (Figure 2), Services sector had the highest number of workers (3,728,797), accounting for 68.7 percent of the total employment in 2012. It expanded by 77.9 percent from 2,096,126 in 2006. Industry sector followed with 1,530,451 workers or 28.2 percent share to total employment, higher by 17.4 percent from 1,304,073 recorded in 2006. Agriculture with 164,706 workers or 3.0 percent share to total increased by 11.6 percent from 147,619 workers in 2006.
At the national level, average number of workers per establishment was recorded at 25 both in 2006 and as in 2012. Services sector reported lower than the national average with an average of 20 workers per establishment. Highest average number of workers was recorded for Agriculture sector at 67 while the Industry sector registered an average number of workers of 54 per establishment.
Of the 17 regions nationwide, as expected NCR had the highest employment with 43.1 percent share (2,339,004). CALABARZON (863,847 or 15.9%) and Central Visayas (471,026 or 8.7%) settled for second and third posts. Autonomous Region in Muslim Mindanao (ARMM) contributed the least shares (12,383 or 0.2%).
Highest average number of workers per establishment was recorded in NCR at 32. Aside for NCR, CALABARZON also registered more than the national average with 29 workers per establishment. Central Visayas and SOCCSKSARGEN both recorded 25 workers per establishment.
Total Compensation in 2012 reaches 1.21 trillion pesos
Total compensation consists of gross salaries and wages paid to employees including employer’s contribution to Social Security Services (SSS), Government Social Insurance Service (GSIS) and other contributions paid by establishments in 2012. Total national compensation in 2012 more than doubled in amount, accelerating by 104.4 percent to PHP1.21 trillion as compared to PHP593.61 billion recorded in 2006. This was mainly attributed to the 125.0 percent increase in compensation paid to the Services sector. Moreover, compensation paid to Industry and Agriculture sectors also rose by 73.3 percent and 60.1 percent, respectively from 2006 to 2012.
More than three-fifths (66.8%) of the total compensation paid in 2012 were contributed by Services sector (PHP810.52 billion). Industry sector accounted for 31.4 percent (PHP380.50 billion) of the total compensation paid in 2012 while the share of Agriculture was only 1.8 percent of the total compensation or PHP22.18 billion.
Average monthly compensation in 2012 was valued at PHP19,013, a 33.0 percent increase compared to PHP14,292 in 2006. Workers in the Industry sector received the highest average monthly pay of PHP20,969 in 2012. It went up by 47.8 percent from PHP14,185 in 2006. This was followed by Services sector with PHP18,538 which increased by 25.1 percent from PHP14,820 in 2006. Agriculture on the other hand, registered an average monthly compensation of PHP11,426, an increase of 44.3 percent from PHP7,918 in 2006 (Figure 3).
NCR with PHP25,544 topped other regions in terms of average monthly compensation. CALABARZON placed second with PHP17,608 and Cordillera Administrative Region (CAR), ranked third with PHP17,042. Zamboanga Peninsula recorded the least average monthly compensation of PHP8,511.
Services sectors top revenue earner in 2012; NCR tops in spending
Total revenue or total income earned for All Establishments grew by 89.5 percent to PHP13.95 trillion from PHP7.36 trillion in 2006. This was brought about by the increase in number of Services establishments in 2012. More than half of the total income earned in 2012 was contributed by Services sector (PHP7.91 trillion or 56.7%). Industry sector shared 42.3 percent (PHP5.91 trillion). Agriculture with recorded income of PHP138.03 billion shared only 1.0 percent of the total and improved by 84.2 percent from PHP74.94 billion in 2006.
Figure 4 shows that the percent share in total income of the Industry sector in 2006 shifted to Services sector in 2012.
Region-wise, share of NCR to total income was more than two-fifths (PHP6.63 trillion or 47.5%) and CALABARZON, one-fifth (PHP2.90 trillion or 20.8%). Central Luzon contributed almost one-tenth (PHP1.21 trillion or 8.7%) while ARMM had the least share of 0.1 percent to total income in 2012 (PHP7.81 billion).
Services sector incurs highest cost
Total cost incurred in 2012, whether paid or payable amounted to PHP11.95 trillion, higher by 106.3 percent over the PHP5.79 trillion spent in 2006. Services sector, the highest spender incurred PHP6.84 trillion or more than half (57.2%) of the total cost in 2012. It increased by 167.3 percent, the highest growth among the three major groups from PHP2.56 trillion in 2006 (Figure 5). Industry sector on the other hand, spent PHP4.97 trillion, a 56.7 percent increment from PHP3.17 trillion spent in 2006.
By region, NCR spent the largest as it incurred PHP5.65 trillion or 47.3 percent of the total, CALABARZON and Central Luzon followed next with PHP2.37 trillion (19.9%) and PHP1.12 billion (9.4%), respectively.
Income per peso cost computed as the ratio of total income to total cost was computed at 1.17 in 2012. This means that in terms of income, 1.17 pesos was realized for every peso spent in 2012.
Value Added amounts to PHP3.90 trillion; NCR tops
Value added, an indicator which measures the value of output minus the intermediate inputs generated for All Establishments amounted to PHP3.90 trillion, an increase of 85.1 percent from PHP2.11 trillion recorded in 2006.
More than half (57.2%) of the total value added in 2012 was contributed by Services sector with PHP2.23 trillion, representing 94.8 percent increase from PHP1.14 trillion recorded in 2006. Industry sector came in next with PHP1.64 trillion accounting for 42.0 percent and rose by 73.7 percent from PHP943.94 billion in 2006. Agriculture with PHP32.13 billion value added shared 0.8 percent to total, higher by 63.4 percent from PHP19.67 billion reported in 2006 (Figure 6).
NCR with PHP2.05 trillion led other regions in terms of value added contribution in 2012 with 52.6 percent share to total. CALABARZON which comprised 20.7 percent of the total value added ranked second with PHP808.57 billion. Central Visayas ranked third with PHP228.74 billion or 5.9 percent share to total. ARMM with PHP1.88 billion lagged behind contributing 0.05 percent share to total value added.
Workers in Industry sector most productive, so does MIMAROPA
Labor productivity is measured in several ways. Value added per worker is one method. This indicator is computed by dividing the Total Value Added by the Total Employment. At the national level, value added per worker was recorded at PHP719.4 thousand in 2012, 21.1 percent higher compared to PHP594.32 thousand in 2006. Using this indicator, Industry sector was the most productive in 2012, with value added per worker of PHP1.07 million and positive growth of 48.0 percent from PHP723.84 thousand in 2006. Services sector recorded PHP598.14 thousand value added per worker in 2012, 9.5 percent higher than the 2006 level of PHP546.22 thousand. Agriculture remained to be the least productive among the three broad industry groups with PHP195.07 thousand and a positive growth of 46.4 percent from PHP133.23 thousand in 2006.
By region, MIMAROPA had the highest labor productivity at PHP1.45 million in 2012. Aside from MIMAROPA, CAR, CALABARZON and NCR with value added per worker of PHP997.23 thousand, PHP936.01 thousand and PHP878.36 thousand, respectively, exceeded the national average. ARMM was recorded least labor productive with PHP152.11 thousand in 2012.
Subsidies more than four times in 2012
Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.
Total subsidies received for All Establishments summed up to PHP54.6 billion, four times more than the amount granted to establishments in 2006 (PHP12.60 billion). Services sector received the largest amount of subsidy equivalent to PHP39.36 billion or 72.1 percent share to total, an increase of 1,141.3 percent from PHP3.17 billion in 2006. The increase was 12 times its value in 2006. Subsidies received by Agriculture sector also soared to 1,499.3 percent to PHP 3.56 billion from PHP222.32 million in 2006, rose about sixteen (16) times more than its amount in 2006. For the six-year period, Industry sector received PHP11.69 billion subsidy from the government, an increase of 27.0 percent from PHP9.20 billion in 2006.
At the regional level, NCR received the highest amount of subsidies in 2012 at PHP44.88 billion or 82.2 percent of the total. CALABARZON accounted for 7.6 percent or PHP4.14 billion and Northern Mindanao at PHP1.25 billion or 2.3 percent share.
E –commerce sales amounts to PHP79.00 billion
E-commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks. This is a new data item gathered in the 2012 CPBI. E-commerce sales in 2012 reached PHP79.00 billion, accounting for 0.6 percent of total income in 2012.
Among the three industry groups, Services sector reported the highest sales through e-commerce amounting to PHP60.17 billion or 76.2 percent share to the total e-commerce sales in 2012. Eighty-nine percent of these were contributed by Transport and Storage registering PHP53.42 billion sales from e-commerce. Administrative and Support Service Activities recorded PHP2.63 billion or 4.4 percent share and Wholesale and retail trade with PHP2.00 billion or 3.3 percent share to the total e-commerce sales of the Services sector.
No e-commerce sales were reported for Real Estate Activities, Professional, Scientific and Technical Activities, Human Health and Social Work Activities as well as for Agriculture sector in 2012.
Among Industry sector, only Manufacturing reported e-commerce sales amounting to PHP18.8 billion. This accounts for 0.3 percent of the total income of the Industry sector in 2012.
The top three regions in terms of e-commerce sales were NCR with PHP62.31 billion (78.9%) or 0.9 percent of the total income of the region, Central Visayas with PHP11.09 billion (14.0%) and Western Visayas with PHP2.44 billion (3.1%). However, no e-commerce sales were reported for Eastern Visayas and ARMM.
This Special Release presents the economy-wide preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for establishments with total employment of 20 and over.
The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoral questionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the NSO website and downloading of e-questionnaire and submission thru email.
The conduct of the CPBI is governed by authority of the following legislative acts and presidential directives:
- Commonwealth Act No. 591. An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.
- Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).
- Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.
- Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.
- Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.
Scope and Coverage
The 2012 CPBI was a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2012 CPBI covered only the following economic units:
- All establishments with total employment (TE) of 10 or more, and;
- All establishments with TE of less than 10, except those establishments with Legal Organization= 1 (single proprietorship) and Economic Organization = 1 (single establishment), that are engaged in economic activities classified according to the 2009 Philippine Standard Industrial Classification (PSIC).
The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012. Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 PSIC.
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, Motorcycles (G)
- Transportation and Storage (H)
- Accommodation and Food Service Activities (I)
- Information and Communication (J)
- Financial and Insurance Activities (K)
- Real Estate Activities (L)
- Professional, Scientific and Technical Activities (M)
- Administrative and Support Service Activities (N)
- Education (P)
- Human Health and Social Work Activities (Q)
- Arts, Entertainment and Recreation (R)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2012 CPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.
Classification of Establishments
An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.
Economic Organization (EO). This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
- Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
- Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
- Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
- Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
- Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.
Legal Organization (LO). This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:
- Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise or operator. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
- Partnership (LO=2) refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves.
- Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
- Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
- Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
- Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
- Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.
Industrial Classification. The Industrial Classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 was utilized to classify economic units according to their economic activities.
Size (SZ) of the Unit of Enumeration. The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. This includes paid employees, working owners, unpaid workers and all employees who work full-time or part-time including seasonal workers. Included also are persons on short term leave such as those on sick, vacation or annual leaves and on strike.
The following are the size codes and corresponding total employment used in the 2012CPBI:
Geographic Classification. Establishments are also classified by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities, and barangays in the Philippines. The latest PSGC as of September 30, 2012 was used for the 2012 CPBI.
Selection of sample establishment for the 2012 CPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 93.0 percent collection of questionnaires was achieved only on November 2013.
Total response was about 92.5 percent (54,869 out of 59,303 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 320 establishments responded online, 22 submitted through email/portable data format and four responded using e-questionnaire.
Concepts and Definitions of Terms
Economic activity is the establishment’s source of income. If the establishment is engaged in several activities, its main economic activity is that which earns the biggest income or revenue.
Total employment is the number of persons who worked in for the establishment as of November 15, 2012.
Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
Compensation includes salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer in behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.
Salaries and wages are payments in cash or in kind to all employees, prior to deductions for employee’s contributions to SSS/GSIS, withholding tax, etc. Included are total basic pay, overtime pay and other benefits.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Valued added is gross output less intermediate input. Gross output for private education activities is the sum of the total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; payouts and other cost.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in inventories is equivalent to the value of inventories at the end of the year less the value of inventories at the beginning of the year.
Inventories refer to the stock of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation is at current replacement cost in purchaser prices. Replacement cost is the cost of an item in terms of its present price rather than its original cost.
Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.
E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.