Activities of employment placement agencies leads the sector
Preliminary results of the 2012 Census of Philippine Business and Industry showed that a total of 1,784 establishments with total employment of 20 and over were engaged in Administrative and Support Service Activities.
Activities of employment placement agencies comprised 510 (28.6%) of the total number of establishments. This was followed by establishments engaged in call centers and other related activities ranked second with 479 (26.8%). Ranked third are establishments engaged in private security activities with 443 (24.8%). These top three industries constitute 80 percent of the total number of establishments for the sector. Figure 1 shows the percentage distribution of establishment by industry group in 2012.
Majority of establishments are in the National Capital Region (NCR)
At the regional level, the NCR had the most number of establishments with 62.2 percent (1,110). Central Visayas and CALABARZON placed far second and third with 8.5 percent and 7.5 percent, respectively. (See Table 2)
Call center activities industry employs the highest number of workers
The sector employed a total of 805,942 workers in 2012. Of the total workers, almost all (99.4%) were paid employees and the rest were working owners or unpaid workers.
Call center activities, although ranked second in number of establishments employed the largest number of workers 385,779 (47.9%). Activities of employment placement agencies followed with 214,432 employees (26.6%). Ranked third is private security activities with 123,849 employees (15.4%). Figure 2 shows the distribution of employment by industry group.
Region wise, the NCR recorded the biggest share in employment comprising more than two thirds (68.5% or 552,464) of the total workforce. CALABARZON placed far second with 8.0 percent (64,077) and followed by Central Visayas with 7.5 percent (60,620).
Workers in call centers and other related activities are the highest-paid employees
The sector paid a total compensation of PHP164.3 billion, equivalent to an average annual compensation of PHP205,069 per paid employee in 2012.
Industry wise, call center activities paid the highest compensation of PHP129.1 billion comprising more than three fourths (78.6%) of the total. Activities of employment placement agencies placed far second with PHP18.7 billion (11.4%). Private security activities ranked third with PHP7.3 billion or (4.4%). However, organization of conventions and trade shows and investigation activities recorded the lowest, amounting to PHP22.6 million and PHP14.9 million, respectively.
Among regions, the NCR spent the biggest share in total compensation amounting to PHP132.6 billion (80.7%). Central Visayas and CALABARZON were in second and third place with PHP11.2 billion (6.8%) and PHP5.6 billion (3.4%), respectively.
Workers in call centers and other related activities were the highest-paid employees receiving an average of PHP334,724 per annum. Employees of office administrative and support activities; travel agency and tour operator activities followed next with PHP332,541 and PHP291,465 respectively. Figure 3 shows the average annual compensation by industry for the section.
Employees working in the National Capital Region received the highest average annual compensation of PHP240,330 followed by Bicol Region with PHP228,274. These two regions surpassed the national average of PHP205,069.
Call center activities contribute the biggest share in income and expense
Income generated for the section in 2012 was estimated at PHP349.9 billion. Call center activities had the biggest share with PHP265.9 billion or 76.0 percent of the sector's total income. Activities of employment placement agencies ranked second with PHP39.9 billion (11.4%). Private security activities ranked third with PHP10.0 billion (2.9%).
Most of the income of the section came from NCR with PHP276.5 billion (79.0%). Central Visayas contributed PHP26.2 billion (7.5%) and CALBARZON shared PHP14.4 billion (4.1%).
Total expense including compensation reached PHP297.6 billion. Being the major contributors in income, call center activities and activities of employment placement activities, also had the largest proportion in cost with PHP227.6 billion (76.5%) and PHP33.6 billion (11.3%), respectively. However, investigation activities incurred the lowest expense for the sector with PHP29.9 million (0.1%). Figure 4 shows the top five industry groups in income and expense.
Regionwise, NCR incurred the highest expense amounting to PHP238.6 billion (80.2%) while Cagayan Valley recorded the least with PHP41.8 million (0.01%).
Income-expense ratio stands at 1.18
The section generated an income of PHP1.18 for every peso spent. Among industries, other reservation service and related activities recorded the highest income-expense ratio with PHP1.90 followed by the combined industries of renting and leasing of personal and household goods and leasing of intellectual property and similar products, except copyrighted works with PHP1.60. Travel agency and tour operator activities came in third with PHP1.42.
Value added amounts to PHP231.6 billion
Value added realized by Administrative and Support Service Activities sector totaled PHP231.6 billion in 2012.
Industry wise, call center activities registered the highest value added with PHP178.0 billion (76.9%). Activities of employment placement agencies ranked second with PHP26.1 billion (11.3%) and private security agencies ranked third with PHP8.4 billion (3.6%). On the other hand, Investigation activities recorded the least value added with PHP20.9 million (0.01%). Figure 5 shows the top five industry groups in value added.
Renting and leasing of motor vehicles tops in labor productivity
Value added per employee, a measure of labor productivity, was estimated at PHP287,329. Renting and leasing of motor vehicles led the sector with PHP15.5 million while other human resources provision has the least contribution with PHP30.8 thousand.
Gross additions to fixed assets reaches PHP4.6 billion
Gross additions to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP4.6 billion in 2012.
Call center activities acquired the biggest gross addition to fixed assets with PHP3.0 billion. This was followed by business support service activities, n.e.c. and activities of employment placement agencies, with PHP628.9 million and PHP503.5 million, respectively.
Total change in inventories amounts to PHP121.7 million
Among industries, renting and leasing of other machinery, equipment and tangible goods n.e.c. had the highest change in inventory with PHP122.1 million. Temporary employment agency activities and security systems service activities followed with PHP20.2 million and PHP19.5 million. On the other hand, nine of the 19 industry groups reported negative change in inventories.
Total subsidies received from the government amounts to PHP126.7 million
According to the census results, only two industry groups in the sector received subsidies from the government. Call centers and other related activities and activities of employment placement agencies received PHP125.8 million and PHP930 thousand, respectively.
E-commerce sales posts 2.6 billion
E-commerce refres to the selling ofproducts or services over electronic systems. Four industry proups reported sales from e-commerce led bt call centers and other related activities with a share of PHP2.6 billion.
Activities of employment placement agencies account the biggest portion of total assets
The sector acquired a total assets worth PHP731.7 billion. Activities of employment placement agencies provided the biggest portion of assets amounting to PHP457.9 billion (62.6%) of the total. Call centers and other related activities followed next with PHP212.1 billion.
Northern Mindanao topped other regions in terms of total assets, sharing PHP433.6 billion (59.3%) of the total. NCR ranked second with PHP210.6 billion (28.8%) while Central Luzon contributed with PHP31.6 billion (4.3%).
This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for the Administrative and Support Service sector 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 sectoralquestionnaires. 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 e-mail.
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:
1. Corporations and partnerships
2. Cooperatives and foundations
3. Single establishment with employment of 10 or more
4. Single proprietorship with branches
The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.
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 Classificatin (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 of the formal sector.
Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (PSIC).
Agriculture, Forestry and Fishing (A)
Mining and Quarrying (B)
Electricity, Gas, Steam and Air Conditioning Supply (D)
Water Supply; Sewerage, Waste Management and Remediation Activities (E)
Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
Transport 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)
Private 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 (EO=2) is an establishment which has a separate main office located elsewhere.
Establishment and main office (EO=3) is one where the establishments 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. A sole propietorship 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 whatever 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:
|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|
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 90.2 percent collection of questionnaires was achieved only on November 2013.
Total response rate for Administrative and Support Service sector was 87.53 percent (3,187 out of 3,641 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments
Of the total responses, 40 establishments responded online, four sample establishments accomplished e-questionnaire and three establishments submitted in portable document format (PDF) through e-mail.
For establishments with TE 20 and over, the response rate was 88.57 percent.
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.
Expenses refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Intermediate cost refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased, and agricultural/forestry/fishery 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 sector 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 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.
Value of output represents the sum of the receipts from products and by-products sold, agricultural/forestry/fishery services rendered, industrial services, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account and change in inventories of finished products and work-in-progress.
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.
Source: Philippine Statistics Authority - National Statistics Office