Private secondary education dominates the private education sector

1. Based on the preliminary results of the 2006 Census of Philippine Business and Industry conducted nationwide, with 2006 as the reference year, the Philippines had a total of 2,549 establishments with average total employment (ATE) of 20 and over engaged in private education. As shown in Figure 1, private secondary education garnered the highest number of establishments at 1,038 (40.7%). The private higher education ranked second with 878 (34.5%). Private adult and other education, on the other hand, recorded the lowest number of establishments with only 57 or 2.2 percent.
    

Most establishments are located in NCR

2. On the regional level, National Capital Region (NCR) had the most number of establishments with 585 (23.0%). Region IVA (CALABARZON) placed second with 459 establishments (18.0%) while Region III (Central Luzon) followed with 318 or 12.5 percent of the total. Autonomous Region in Muslim Mindanao (ARMM) had the least with only 29 establishments (1.1%).
    

Private higher education generates the highest employment

3. Employment in 2006 reached a total of 211,531. Out of this total, 208,462 or 98.5 percent were paid employees while the remaining 3,069 (1.5%) were working owners and unpaid employees.
    
4. Table 1 shows that the private higher education, had the most number of employees with 135,339 (64.0%). The private secondary education garnered the second place with 52,171 employees (24.7%). The least number of employees were engaged in private adult and other education with only 2,972 or 1.4 percent.
    
5. Region wise, NCR was the top employer among regions with 70,037 employees (33.1%). CALABARZON followed with 28,795 (13.6%) while ARMM registered the least with only 1,753 employees or 0.8 percent.
    

Private higher education pays the highest compensation

6. The total compensation paid by private education establishments amounted to Php41.3 billion, an equivalent of Php198.1 thousand average annual compensation. Out of the total, Php37.4 billion (90.5%) comprised the salaries and wages while the remaining Php3.9 billion (9.5%) went to the employers contribution to SSS/GSIS and the like.
    
7. By industry group, private higher education paid the highest compensation to its employees amounting to Php29.2 billion or 70.9 percent of the total. Next is the private secondary education paying Php8.6 billion or 21.0 percent.
    

8. Table 2 shows that labor payments in NCR amounted to Php9.4 billion (61%) of compensation nationwide. Central Visayas Region (Region VII), which expended around Php1.2 billion, came next. ARMM was the least payer with only Php5 million.
    

Private higher education employees earn the highest in 2006

9. Private higher education industry employees were the highest earners in 2006 with an average annual compensation of Php219,125. Employees of private adult and other education followed next with Php179,125. Private technical and vocational post -secondary non-degree education employees received the lowest average annual remuneration of Php120,226.
    
10. By region, NCR-based workers received the highest average annual compensation of Php260,859 while employees from ARMM received the least with only Php84,255. Table A shows the computed indicators.
     

Table A. Annual Compensation per Paid Employee for Private Education with ATE 20 and Over by Region

Total revenue amounts to Php85.1 billion, private higher education produces the largest

11. Gross revenue earned in 2006 for private education reached Php85.1 billion. The private higher education was the top contributor with revenue of Php59.6 billion or 70.0 percent of the total. Earning the second place is the private secondary education with Php16.3 billion (19.2%), while the private adult and other education generated the least revenue with only Php1.9 billion (2.3%).
     

12. With respect to regions, NCR produced the highest revenue amounting to Php39.9 billion. The least revenue was made by ARMM with Php195.6 million.
     

Total cost reaches Php33.8 billion, private higher education spends the highest

13. Cost for operating the industry summed up to Php33.8 billion as shown in Table 1. Private higher education incurred the highest cost with Php23.2 billion (68.9%) followed by private secondary education with more than Php6.0 billion or 18.0 percent.
     
14. By region, NCR spent the largest as it incurred Php16.8 billion (49.8%) cost for operating the industry. Region IVA followed with Php4.2 billion. The least cost was recorded by ARMM with only Php56.9 million.
     

Revenue-cost ratio amounts to 2.5, private secondary education industry records the highest returns

15. Revenue-cost ratio, the revenue generated Php2.50 per Php1.00 cost. Among industries, private secondary education recorded the highest with Php2.7 indicating Php2.7 revenue per Php1.00 cost followed by private higher education.
     

Value added increases by 10.8 percent

16. Value added, was estimated at Php61.1 billion. More than Php55.4 billion (90.7%) of the total value added of the sector was contributed by private secondary education and private higher education. Among industries, private higher education made the highest value added amounting to Php43.5 Billion.
     

Private adult and other education industry employees are the most productive

17. Employees of private adult and other education industry were the most productive in 2006 in terms of revenue employee with Php657 thousand revenue per employment. 63.0 percent higher than the national average of Php403 thousand, private secondary education on the other hand recorded the least with only Php313 thousand.
     
18. Value added per total employment, another measure of labor productivity, was valued at an average of Php289 thousand. Among industries, private adult and other education had the highest average of Php343 thousand while the lowest is private technical and vocational post-secondary non-degree education, it was estimated at Php194 thousand.
     

Total change in inventories valued at Php82.0 million

19. Change in inventories, defined as the value of ending inventory less the beginning, amounted to Php82.0 million in 2006 as shown in Table 1. Among the industries, private higher education recorded the highest with Php67.5 million.
     

Gross addition to fixed assets totals Php9.1 billion

20. Gross addition to fixed assets in 2006 totaled to Php9.1 billion with the private higher education recording the highest amount of Php6.8 billion (75.1%). Private adult education had the lowest with only Php79.6 million (0.9%).
     

Subsidies in 2006 reaches Php278.0 million

21. Subsidies in 2006 reached Php278.0 Million with the government providing the highest to the private secondary education amounting to Php176.0 million (63.3%), followed by private higher education with Php92.4 million or 33.3 percent.
     

TECHNICAL NOTES

Introduction

The 2006 Census of Philippine Business and Industry (CPBI), conducted in 2007 with 2006 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2006. Particularly, the data from CPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals

The conduct of the CPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.
 

Scope and Coverage

The 2006 CPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:
 

• Agriculture, hunting and forestry
• Fishing
• Mining and quarrying
• Manufacturing
• Electricity, gas and water
• Construction
• Wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods
• Hotels and restaurants
• Transport, storage and communications
• Financial intermediation
• Real estate, renting and business activities
• Education
• Health and social work
• Other community, social and personal service activities.

The scope of the CPBI was confined to "formal sector" only, which consists of the following:
 

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 and over
• Single proprietorship with branches.

Like all other establishment surveys conducted by the NSO, the 2006 CPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."
 

Classification of Establishments

Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.
 

Classification Systems

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

Economic Organization relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:
 

• Single establishment is an one which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere.
• Establishment and main office, both located in the same address and with branch/es elsewhere.
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise.
• Ancillary unit other than Main Office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments. Examples are warehouse of plants or wholesale establishments, repair shops or garage or terminals of transport establishments.

The Legal Organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:
 

• Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise.
• Partnership 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 is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government.
• Private Corporation is a corporation organized by private persons.
• Cooperative - the establishment name includes words such as Cooperative or COOP

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.

The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

The size of the establishment is determined by its average total employment (ATE). The following are the employment size classification used in the 2006 CPBI:

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines

The geographic domains of the 2006 CPBI for establishments with average total employment (ATE) of 20 and over are the provinces, independent component cities, chartered cities and highly urbanized cities and municipalities. On the other hand, the geographic domains for establishments with ATE of less than 20 are the regions

Hence, the samples of the 2006 CPBI with ATE 20 and over shall provide data for 17 administrative regions, 81 provinces, 39 cities and municipalities. For samples with ATE less than 20, the data that will be presented is limited only for regional levels.

Response Rate

A total of 2,501 out of 2,680 or 93.3 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments. However, the effective response rate is 95.1 percent or 2,549 out of the total workload.

CONCEPTS AND DEFINITIONS OF TERMS

Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

Employment is the number of persons who worked in or for this establishment as of November 15, 2005. The concept of employment as of the payroll November 15 was adopted for the first time in the 2002 ASPBI (reference year 2001).

Average total employment is the sum of the number of persons who worked in or for this establishment for all months of the year divided by 12, regardless of the number of months the establishment is in operation.

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, workers receiving pure commissions only, and workers on indefinite leave.

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.

Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

Book value of fixed assets is the initial value or acquisition cost of fixed assets less the accumulated depreciation.

Gross Additions to Fixed Assets is the sum of costs of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

Value added represents the sum of census value added and value of non-industrial services done for others less the cost of non-industrial services done by others and other costs.

Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser’s price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

Change in Inventories is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry or production and to protect it against competition.

Source:   National Statistics Office
        Manila, Philippines