2010 Annual Survey of Philippine Business and Industry - Human Health and Social Work for Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2012-752

Release Date: 

Tuesday, October 2, 2012

Hospital activities lead the section

Preliminary results of the 2010 Annual Survey of Philippine Business and Industry showed that a total of 730 establishments with total employment (TE) of 20 and over were engaged in Human Health and Social Activities.

As shown in Table 1, hospital activities garnered the highest number of establishments with 512 (70.1%). Medical and dental activities ranked far second with 174 (23.8 %), followed by other social work activities without accommodation, n.e.c. with 21 or 2.9 percent. On the other hand, other human health activities recorded the lowest number with 4 (0.5%). Figure 1 shows the percent distribution of establishments by industry group.

Majority of establishments are in the National Capital Region (NCR)

At the regional level, the NCR had the most number of establishments with 245 or 33.6 percent. CALABARZON and Central Luzon placed second and third with 109 or 14.9 percent and 72 or 9.9 percent, respectively. (Table 2)

Hospital activities employ the highest number of workers

Employment reached a total of 98,214. Out of this total, 96,994 or 98.8 percent were paid employees while the remaining 1,220 or 1.2 percent were working owners and unpaid workers.

Figure 2 shows that hospital activities, having the highest number in terms of establishments, had the most number of employees with 86,420 or 88.0 percent followed by medical and dental industry with 8,382 or 8.5 percent. On the other hand, residential care activities for mental retardation, mental health and substance abuse registered the least with 201 employees or 0.2 percent.

AAmong regions, National Capital Region was the top employer with a total employment of 39,279 or 40.0 percent followed by CALABARZON with 13,166 employees or 13.4 percent.

Workers engaged in other social work activities without accommodation, n.e.c. are the highest paid employees

Total compensation paid by the sector amounted to PHP16.9 billion, translating to an average annual compensation of PHP174.6 thousand per employee.

Across industries, hospital activities paid the highest compensation to its employees amounting to PHP14.8 billion or 87.6 percent of the total. Medical and dental practices placed second with PHP1.4 billion or 8.3 percent. On the other hand, other human health activities paid the least with PHP29.5 million or 0.2 percent.

Human Health and Social Work Activities paid an average annual compensation of PHP174.6 thousand per paid employee. Other social work activities without accommodation, n.e.c. employees received the highest annual compensation of PHP238.6 thousand followed by residential care activities for mental retardation, mental health and substance abuse activities with PHP183.4 thousand and other residential care activities, n.e.c. with PHP179.1 thousand. Distribution of average annual compensation per employee by industry group is shown in Figure 3.

Among regions, NCR topped the labor payments amounting to PHP9.0 billion.

Hospital activities contribute the biggest share in revenue and cost

Gross revenue realized by the sector reached PhP73.0 billion. Hospital activities had the biggest share with PhP63.4 billion or 86.9 percent of the total. Medical and dental practice activities came next with PhP5.9 billion (8.1%). On the other hand, Residential care activities for mental retardation, mental health and substance abuse shared the least with PhP90.6 million (0.1%).

Total cost (excluding compensation paid to employees) amounted to PhP47.8 billion. Being the major contributors in revenue, Hospital activities also had the largest proportion in cost with PhP41.5 billion (86.9%) and other Medical and dental practice activities with PhP4.0 billion (8.4%). However, Residential care activities for mental retardation, mental health and substance abuse incurred the lowest cost of PhP79.5 million (0.2%). Figure 4 shows the revenue generated and cost incurred by the Human Health and Social Work Activities section by industry group.

With respect to regions, NCR produced the highest revenue amounting to PhP39.3 billion.

Revenue-cost ratio amounts to 1.5

Revenue-cost ratio, the revenue generated per PHP1 cost, amounted to 1.5. Among industries, other residential care activities, n.e.c. registered the highest with 2.9, indicating PHP2.9 revenue per PHP1 cost, followed by hospital activities and medical and dental practice activities with both PHP1.5 per PHP1 cost.

Value added amounts to PHP32.8 billion

Value added was estimated at PHP32.8 billion. More than PHP28.8 billion or 87.9 percent of the value added for the sector was contributed by hospital activities. Residential care activities for mental retardation, mental health and substance abuse generated the lowest with PHP14.3 million.

Value added per total employment, another measure of labor productivity, recorded an average of PHP333.7 thousand added value to services per employee. Figure 5 displays the distribution of value added per worker by industry group.

Gross addition to fixed assets totals to PHP5.3 billion

Gross addition to fixed assets totaled to PHP5.3 billion. Hospital industry recorded the highest additions to fixed assets with PHP4.8 billion (91.3%). Residential care activities for mental retardation, mental health and substance abuse industry had the lowest with only PHP3.4 million.

Total change in inventories values at PHP551.8 million

Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP551.8 million. Among industries, hospital activities recorded the highest with PHP479.9 million followed by medical and dental practice activities and other social work activities without accommodation, n.e.c. with PHP46.1 million and PHP24.3 million, respectively.

Gross addition to fixed assets totals to PhP5.3 billion

Change in inventories, defined as the value of ending inventory less the beginning, amounted to PhP551.8 million. Among industries, Hospital activities recorded the highest with PhP479.9 million followed by Medical and dental practice activities and Other social work activities without accommodation, n.e.c. with PhP46.1 million and PhP24.3 million, respectively.


TECHNICAL NOTES

Introduction

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office (NSO) which aims to provide key measures on the performance, levels, structure and trends of economic activities in the entire country for the year 2010. It is one of the designated statistical activities of the government and as such the survey generates the most critical and essential statistics required for economic planning and analysis.

The 2009 Philippine Standard Industrial Classification (PSIC) shall be adopted for the first time in this round. This is the latest version of the classification of industries in the country released by the NSCB after the 1994 PSIC was amended in 2002. It conforms with the International Standard Industrial Classification (ISIC) Revision 4 prescribe by the United Nations, but with modifications to suit national situation and requirement. The PSIC is a statistical classification of all economic activities, designed as a guide and a comprehensive framework for securing uniformity and comparability of both the government and private sectors.

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

Scope and coverage

The 2010 ASPBI covered establishments engaged in 18 economic sections classified under the 2009 Philippine Standard Industrial Classification (PSIC) namely:.

  • Agriculture, Forestry and Fishing

  • Mining and Quarrying

  • Manufacturing

  • Electricity, Gas, Steam and Air Conditioning Supply and Water Supply

  • Water Supply; Sewerage, Waste Management and Remediation Activities

  • Construction

  • Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

  • Transport and Storage

  • Accommodation and Food Service Activities

  • Information and Communication

  • Financial and Insurance Activities

  • Real Estate Activities

  • Professional, Scientific and Technical Activities

  • Administrative and Support Service Activities

  • Private Education

  • Human Health and Social Work

  • Arts Entertainment, and Recreation

  • Other Service Activities

The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.

  • Corporations and partnership

  • Cooperatives and foundations

  • Single proprietorships with employment of 10 or more

  • Single proprietorships with branches

Like all other establishment surveys conducted by the NSO, the 2010 ASPBI 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.

Economic organizations 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 establishment 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 branches 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

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. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator

  • 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. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS

  • Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC

  • Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC

  • 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 2009 PSIC is utilized to classify units according to their economic activities. It was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 signed on February 10, 2010. It will be used for the 1st time for the ASPBI.

The 2009 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major section, is denoted by the characters A to U. They also refer to sector classification. 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 total employment (TE). The following are the employment size classification used in the 2010 ASPBI:

 

TE Code Total Employment TE Code Total Employment
0 1 - 4 5 100 - 199
1 5 - 9 6 200 - 499
2 10 - 19 7 500 - 999
3 20 - 49 8 1000 - 1999
4 50 - 99 9 2000 & Over

 

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 31, 2010 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

 

The geographic domains of the 2010 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

Hence, the samples of the 2010 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.

Response Rate

A total of 453 or 99.12 percent of sample establishments responded. These include receipts of “good” questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

 

CONCEPTS AND DEFINITIONS OF TERMS

 

Economic activity or business is the activity of the establishment as classified under 2009 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.

Total employment is the number of persons who worked in or for this establishment as of November 15, 2010.

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.

Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer’s price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser’s price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased.

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

Gross additions to tangible fixed assets is the sum of cost 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 is gross output less intermediate input. Gross output for Human Health and Social Work Activities is the sum of the total revenue (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 and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.

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

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