2014 Annual Survey of Philippine Business and Industry (ASPBI) - Administrative and Support Service Activities Sector : Final Results

Reference Number: 

2017-069

Release Date: 

Friday, March 17, 2017

Activities of employment placement agencies post highest number of establishments

The final results of the 2014 Annual Survey of Philippine Business and Industry showed that a total of 6,905 establishments were engaged in administrative and support service activities.  Establishments with Total Employment (TE) of less than 20 comprised 5,252 (76.1%) of the total establishments while the remaining 1,653 (23.9%) were establishments with TE of 20 and over.

Activities of employment placement agencies comprised about 2,497 (36.2%) of the total number of establishments.  This was followed by establishments engaged in travel agency and tour operator activities with 867 (12.6%).  Ranked third were establishments engaged in office administrative and support activities with 719 (10.4%).  Other industries contributed about 22.5 percent to the total. Figure 1 shows the percentage distribution of establishments by industry group in 2014.

 

Call centers and other related activities employ the highest number of workers

The sector employed a total of 840,392 workers in 2014.  Of the total workers, almost all (99.7%) were paid employees.  Establishments with TE of 20 and over employed 803,644 or 95.6 percent of the total employment while establishments with TE of less than 20 shared 36,748 employees or 4.4 percent of the total.

Call centers and other related activities employed the largest number of workers with 452,525 (53.8%).  Activities of employment placement agencies followed with 204,664 employees (24.4%). Ranked third was private security activities with 103,463 employees (12.3%).  Figure 2 shows the distribution of employment by industry group in 2014.

 

Workers in organization of conventions and trade show are the highest earners in 2014

In 2014, the sector paid a total compensation of PHP220.8 billion, translating to an average annual compensation of PHP263,461 per employee.

Industry wise, call centers and other related activities paid the highest compensation of PHP174.0 billion comprising more than three fourths (78.8%) of the total.  Activities of employment placement agencies placed a far second with PHP28.1 billion (12.7%).  Private security activities ranked third with PHP5.8 billion or (2.6%).

Organization of conventions and trade shows were the highest-paid employees receiving an average of PHP436,845 per annum.  Employees of combined facilities support activities; other reservation service and related activities followed next with PHP426,530 and PHP391,108, respectively.  Figure 3 shows the average annual compensation by industry groups for the sector.

 

Call centers and other related activities generate the biggest share in income and expense

Income generated by the sector was estimated at PHP411.1 billion in 2014.  Establishments with TE of 20 and over shared more than 90 percent of the total amounting to PHP378.5 billion.  On the other hand, establishments with TE of less than 20 contributed PHP32.7 billion or 7.9 percent of the total income.

Call centers and other related activities had the biggest share with PHP307.6 billion or 74.8 percent of the total.  Activities of employment placement agencies followed with PHP47.9 billion (11.6%).  Travel agency and tour operator activities ranked third with PHP12.1 billion (3.0%).

Total expense incurred amounted to PHP365.5 billion in 2014.  Establishments with TE of 20 and over recorded the highest expense with PHP335.8 billion or 91.9 percent of the total while establishments with TE of less than 20 spent PHP29.7 billion or 8.1 percent.

Being the major contributor in income, call centers and other related activities also had the largest proportion in expense with PHP272.9 billion (74.7%).  Activities of employment placement agencies followed next with PHP42.9 billion (11.7%) while travel agency and tour operator activities ranked third with PHP10.5 billion (2.9%).  Figure 4 shows the top five industry groups in income and expense.

 

Income-expense ratio stands at 1.12

The sector generated an income of PHP1.12 for every peso spent.  Among industries, renting and leasing of other machinery, equipment and tangible goods, n.e.c. recorded the highest income-expense ratio with 1.25, followed by renting and leasing of motor vehicles with 1.19. Investigation activities came in third with 1.17.

Value added amounts to PHP286.2 billion

Value added for administrative and support service activities sector was estimated at PHP286.2 billion in 2014.

Across industries, call centers and other related activities registered the highest value added with PHP222.8 billion (77.8%).  Activities of employment placement agencies followed next with PHP34.8 billion (12.2%) and private security agencies came in third with PHP8.0 billion (2.8%).  On the other hand, leasing of intellectual property and similar products, except copyrighted works recorded the least with PHP10.7 million (0.004%).  Figure 5 shows the top five industry groups in value added.

 

Renting and leasing of other machinery, equipment and tangible goods has the highest labor productivity

Value added per employee, a measure of labor productivity, was estimated at PHP340,592.  Renting and leasing of other machinery, equipment and tangible goods led the sector with PHP750.5 thousand while temporary employment agency activities had the least contribution with PHP47.4 thousand.

Gross addition to fixed assets reaches PHP11.4 billion

Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP11.4 billion in 2014.

Call centers and other related activities acquired the biggest gross additions to fixed assets with PHP9.3 billion.  This was followed by activities of employment placement agencies and renting and leasing of other machinery, equipment and tangible goods, n.e.c., with PHP725.4 million and PHP477.3 million, respectively.

Call centers and other related activities has the highest change in inventory

Call centers and other related activities had the highest change in inventory with PHP229.6 million.  Activities of employment placement agencies and renting and leasing of other machinery, equipment and tangible goods, n.e.c. followed with PHP122.6 million and PHP53.5 million, respectively.  On the other hand, business support service activities, n.e.c. reported the lowest change in inventories amounting to negative PHP14.8 million.

Government grants PHP673.9 million subsidies

The total subsidies granted to the sector reached PHP673.9 million in 2014.  Call centers and other related activities received the highest subsidies from the government amounting to PHP672.4 million.

E-commerce sales post PHP1.1 billion

E-Commerce refers to the selling of products or services over electronic systems.  In 2014, sales from e-commerce amounted to PHP1.1 billion. Call centers and other related activities had the biggest share among industries amounting to PHP978.5 million.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the final results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Administrative and Support Service Activities sector for all establishments in the formal sector of the economy.

The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA).  Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014.

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionaire and submission thru email.

Legal Authority

The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2014 ASPBI is a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector.  The following comprise the formal sector:  

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2014 ASPBI 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 estimate of the 2014 LE shows that there are about 944,500 establishments in operation in the country for the year.  About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.

Listed below are the 18 economic sectors within the scope of the 2014 ASPBI 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)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is 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.  

Legal Organization (LO).  This refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment.  The following are the types of legal organization: 

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 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. 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.

Geographic Classification is grouping of establishments 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 PSGC as of December 31, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2014 ASPBI 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.

Estimation Procedure

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic  for the non-certainty employment stratum TE less than 20 in the sth industry domain was

 

where:

  •    = denotes the non-certainty employment strata in TE of less than 20
  •  Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
  •       =  1,2,3..., ns establishments
  •  Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

 

  •  Ns  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
  •  ns  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

b. Certainty Stratum

    The total of a characteristic  for the certainty employment stratum in the Cth industry domain was

where:

  •    = denotes the certainty employment strata in TE of less than 20 in the cth industry
  •  xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
  •  j      = 1,2,3,..., mc establishments 
  •  mc  = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain

 

c. Total Estimate for TE of Less Than 20

    For all sections except B and C, national level estimates of the total of a characteristic  for the industry domain was obtain by                  aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

 

     where  d  denotes the industry domain.

For Establishments with TE of 20 and Over

a.   Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99 for Sections G, H, I, J, K, L, M, N, P, Q, R and S.  

      The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for selected industry                    domain in each region was as

where:

  •  s     = denotes the non-certainty employment strata in TE 20 and over
  •  p     = 1,2,...,17 regions geographic domains
  •  xspj  = value of the jth establishment in the certainty employment strata in TE of 20 and over for an industry domain in each region
  •  j         = 1,2,3..., nsp establishments
  •  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

  •  Nsp  = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
  •  nsp  = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

b.   Certainty Stratum  

      The the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each region was

where:

  •  c    = denotes the non-certainty employment strata in TE of 20 and over
  •  p    = 1,2,...17, regions (geographic domains)
  •  xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in an industry domain within each region
  •      = 1,2,3..., mcp establishment  
  •  mcp number of establishments in the certainty strata in TE of 20 and over in an industry domain in each region

 

c.   Total Estimate for TE of 20 and Over  

      The estimate of the total of a characteristic for the industry domain in each (geographic domain) was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry 

where   dp  denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates (Xdp)  for the particular industry domain from all the regions.

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, defined as N/n, was recomputed as

 

Thus, the adjusted weight (W’sj) for employment stratum in TE 1-9 or TE 10-19 was

where:

  •  Ns   = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
  •  n's   = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

where:

  •  Nsp  = total number of establisments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
  •  n'sp  = number of responding establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 Questionaire Design

The questionnaire design is basically the same as that of the 2012 Census of Philippine Business and Industry. However, changes were made in the disaggregation of data items for fixed assets in support to the requirements of the 2008 Systems of National Accounts with respect to the generation of fixed capital formation.

The sample establishments responded also to the survey through the use of Web-based version of the 2014 ASPBI questionnaires which was accomplished online at the PSA website. Likewise, an e-questionnaire was also downloaded and submitted thru e-mail.

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for Administrative and Support Service Activities sector was 86.7 percent (1,995 out of 2,300 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, forty-eight establishments responded online.

 

Concepts and Definitions of Terms

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Total Employment is the number of persons who worked in for the establishment as of November 15, 2014.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment.  Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay.  Excluded are silent or inactive business partners.

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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 includes cash received and receivables for goods/products and by-products sold and services rendered.  Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

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.  Valuation is at purchaser price 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.

Intermediate input refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value Added is gross output less intermediate input. Gross output for Administrative and Support Service Activities is the sum of the total income (less rent income from land, 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; industrial services done by others; non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee and other expenses.  

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

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.

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.

  
  

 

Attachment: 

Tags: 

Industry: 

Real Estate, Renting and Business Activities

Industry 2009 PSIC: 

Other Service Activities