Skip to main content
Release Date :
Reference Number :
2017-235

Private secondary education has the largest number of establishments

Preliminary results of the 2015 ASPBI conducted nationwide, showed that a total of 3,568 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in private education activities.

Highest number of establishments was recorded by secondary/high school education with 1,554(43.6%). This was followed by higher education industry with1,251(35.1%) establishments.  Primary/elementary education industry ranked third with 426 or 11.9 percent establishments.  Pre-primary/pre-school education industry had the least number of establishments at 132(1.9%).  Figure 1 shows the percentage distribution of private education activities by industry group.

 

On the regional level, National Capital Region (NCR) had the highest number of establishments with 810 (22.7%). CALABARZON followed second with 681 establishments (19.1%). Central Luzon ranked third with 457 establishments (12.8%). Autonomous Region in Muslim Mindanao (ARMM) had the least, with 47 establishments (1.3%).

Establishments providing higher education hire the highest number of workers

Employment for private education activities reached a total of 265,813 in 2015. Out of this total, 263,719 or 99.2 percent were paid employees while the remaining 2,094 were working owners and unpaid workers.

Higher education industry hired the most number of employees with 160,765 or 60.5 percent of the total. Secondary/high school education followed with 73,387 employees (27.6%). The least number of employees was recorded by pre-primary/pre-school education industry with 4,984 or 1.9 percent of the total. Figure 2 displays the distribution of employment for private education activities by industry group.

 

Across regions, NCR had the highest number of employees with 79,998 (30.1%). CALABARZON and Central Luzon, ranked second and third with 38,441(14.5%) and 29,631(11.2%) employees respectively. ARMM had the least with only 2,896 employees

The sector recorded an average number of 74 workers per establishment. Higher education industry posted the largest average, surpassing the national average at 129 employees per establishment. This was followed by other education and educational support services industries with 54 workers for each establishment. Primary/elementary education posted the lowest with only 37 workers per establishment.

Employees of higher education industry are the highest paid in 2015

Total compensation paid by education sector amounted to PHP69.0 billion, translating to an average annual compensation of PHP261.5 thousand per employee.

Across industry groups, higher education industry paid the highest average annual compensation of PHP294.0 thousand per employee, followed by secondary education industry with PHP222.9 thousand. On the other hand, employees of establishments providing pre-primary/pre-school education industry had the lowest average annual pay of PHP170.9 thousand. The average annual compensation per employee for private education is shown in Figure 3 by industry group.

 

Among regions, NCR establishments had the largest share of compensation paid, with PHP29.6 billion, translating to an average annual compensation of PHP371.5 thousand per employee. Cordillera Administrative Region (CAR) and Central Visayas ranked second and third, with an average annual compensation of PHP279.7 thousand and PHP260.5 thousand annual pay, respectively. Establishments in ARMM paid the least average annual compensation of only PHP99.5 thousand.

Higher education is the top income generating industry in 2015

Income generated by the sector reached PHP155.2 billion.

Higher education industry contributed the biggest share of PHP108.5 billion or 69.9 percent of the total income. Second largest income generating industry was secondary/high school education industry with PHP32.0 billion or 20.6 percent. Pre-primary/pre-school education industry generated the least income of PHP1.9 billion or 1.2 percent of the total income.

Across region, NCR generated the highest income of PHP68.6 billion (44.2%), followed by CALABARZON with PHP22.6 billion or 14.6 percent of the total income for private education. Central Luzon generated the third highest income with PHP12.2 billion or 7.9 percent. The least income was generated by ARMM with PHP523.1 million or a mere 0.3 percent.

Total expense reaches PHP133.1 billion; higher education is the highest spender

Total expense incurred by the sector in 2015 amounted to PHP133.1 billion.

Higher education incurred the highest expense of PHP91.0 billion (68.4%). Pre-primary/pre-school education industry had the lowest expense of PHP1.7 billion (1.3%). Figure 4 shows the income generated and expense incurred by private education by industry group.

 

At the regional level, NCR was the top spender at PHP57.9 billion (43.5%), this was followed by CALABARZON with PHP19.7 billion (14.8%) expense, and Central Luzon incurred the third highest expense of PHP10.4 billion or 7.9 percent

Income per peso expense for the sector stands at 1.17 in 2015

The income generated per peso expense for private education stood at 1.17. This means that an income of PHP1.17 was generated for every peso spent in the operation of the business. Establishments in higher education industry recorded the highest ratio of 1.19. Ranked second was primary/elementary education with a ratio of 1.13. Other education and educational support services industries registered the lowest, with a ratio of 1.05 income per peso expense.

Among regions, Zamboanga Peninsula recorded the highest ratio of PHP1.27 income per peso expense. ARMM came in second with 1.24 while SOCCSKSARGEN posted the lowest ratio of 1.03.

Value added amounts to about PHP104.8 billion

Value added for the sector was estimated at about PHP104.8 billion.

Higher education contributed the highest value added amounting to PHP74.2 billion or 70.8 percent of the total. On the other hand, pre-primary/pre-school education reported the lowest with PHP1.2 billion.

At the regional level, NCR posted the highest value added of PHP45.6 billion (43.5%). CALABARZON came in next, with PHP14.7 billion (14.1%). Central Luzon completed the top three in terms of value added amounting to PHP8.5 billion (8.1%). On the other hand, ARMM reported the least value added of PHP410.0 million or 0.4 percent of the total value added in 2015.

Employees of higher education industry are the most productive in 2015

Value added per worker, a measure of labor productivity, was valued at PHP394.3 thousand.

Workers of higher education industry were the most labor productive, with an average of PHP461.8 thousand. On the other hand, pre-primary/pre-school education workers were the least productive with PHP233.7 thousand.

 

Region-wise, workers in NCR garnered the highest labor productivity with PHP570.4 thousand per employee, Central Visayas ranked second with PHP408.9 thousand and CALABARZON ranked third with PHP383.1 thousand. Workers in ARMM reported the least labor productivity amounting to PHP141.6 thousand.

Gross addition to tangible fixed assets totals PHP11.1 billion

Private Education acquired a total of PHP11.1 billion worth of fixed assets in 2015.

Higher education industry recorded more than three fourths (77.7%) of the total acquisitions of tangible fixed assets among the industry groups with PHP8.6 billion. More than 16.0 percent of the total additions to fixed assets was accounted for secondary/high school education with PHP1.8 billion. Pre-primary/pre-school education industry had the least share of gross addition to tangible fixed assets worth PHP143.0 million.

Across regions, almost half or 44.7 percent (PHP5.0 billion) of gross addition to fixed assets was acquired by establishments in NCR. CALABARZON and Davao Region recorded a share of 14.4 percent and 6.1 percent, respectively.

Higher education industry records the highest change in inventories

In 2015, higher education had the highest share in inventory of PHP25.1 million. This was followed by primary/elementary education industry with PHP6.9 million.

Among regions, CALABARZON posted the highest change in inventories amounting to PHP16.1 million. Other regions which reported more than PHP3.0 million changes in inventories were the following:

  •  NCR, PHP7.1 million;
  •  Caraga, PHP5.1 million
  •  Negros Island Region, PHP4.2 million
  •  SOCCSKSARGEN, PHP3.7 million

Subsidies reach to PHP1.4 billion

Subsidies in 2015 reached PHP1.4 billion with the government providing grants to all the private education industries of the sector.

Secondary/high school education received the highest grant from the government amounting to PHP709.5 million (51.2%). Higher education had a 34.0 percent share of the total with PHP471.3 million. The least subsidy was granted to pre-primary/pre-school education amounting to PHP5.8 million.

All the regions received subsidies from the government in 2015. NCR received the largest grant of PHP291.6 million. Other regions that were given more than PHP100 million worth of subsidy were the following:

  • Central Luzon, PHP121.2 million
  • CALABARZON, PHP114.4 million
  • Central Visayas, PHP110.0 million

Sales from e-commerce amounts to PHP1.0 billion

Transactions from e-commerce reached PHP1.0 billion in 2015.

Other education and educational support services located in CAR had transaction from e-commerce during the survey year.

 


 

TECHNICAL NOTES

 

Introduction

This special release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for Education sector. This sector includes education level for private and public industries as defined by the Philippine Standard Classification of Education (PSCED). The 2015 ASPBI covered only private education activities.

The 2015 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 in the entire country for the year 2015.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

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

Legal Authority

The conduct of the 2015 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 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:  

  • 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 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)
  • Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:  

  •  Corporations and partnerships
  •  Cooperatives and foundations
  •  Single proprietorship with employment of 10 and over
  •  Single proprietorship with branches

Hence, the 2015 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).

Frame of Establishments

The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment. 

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.

Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office. 

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative. 

Industrial Classification of an economic unit was 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 of an establishment 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  refers to the 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, 2015 was used for the 2015 ASPBI.

Methodology

Sampling Design

Selection of sample establishment for the 2015 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.

For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.

Estimation Procedure 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 A,C,E,F,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 an industry domain in each region 

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 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 with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

   Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region

    nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region

 

   b.  Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...18 regions (geographic domains)

   Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

       j = 1,2,3,..., mcp establishments                                                 

  mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within 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 region (geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates  for  the particular industry domain from all the regions,

 

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

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

Where:

 Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the industry domain within each geographic domain (region)

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

 

Response Rate

Response rate for Education sector for establishments with TE of 20 and over was 99.6 percent (1,058 out of 1,062 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 54 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.

Limitation of Data

Only the formal sector was covered in the survey.

 

Concepts and Definitions of Terms

 

Establishment  is defined as 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.

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, 2015.

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.

Income or Revenue refers to 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.

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.

Compensation is the sum of 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.

Valued added  is gross output less intermediate input. Gross output for education sector is the sum of 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 inventory. Intermediate input is equal to the sum of the following expense 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 (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.

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.
 
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 Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

 


 

Related Contents

2019 Annual Survey of Philippine Business and Industry (ASPBI) - Real Estate Activities Sector: Preliminary Results

The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 5,179 establishments in the formal sector of the economy were engaged in real estate…

2018 Census of Philippine Business and Industry: Education

The industry section on education (Section P) includes six industry group covering the activities of education at any level or for any profession, oral or written, as well as by radio and television…

2017 Annual Survey of Philippine Business and Industry (ASPBI) - Economy Wide All Establishments: Final Results

The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that in 2017, the Philippines had a total of 224,540 establishments in the formal sector of its economy. This…