Activities of employment placement agencies lead the sector
The final results of the 2012 Census of Philippine Business and Industry showed that a total of 6,979 establishments were engaged in Administrative and Support Service Activities. Establishments with total employment (TE) of less than 20 comprised 5,201 (74.5%) of the total establishments while the remaining 1,778 (25.5%) were establishments with TE of 20 and over.
Activities of employment placement agencies comprised 2,457 (35.2%) of the total number of establishments. This was followed by 856 (12.3%) establishments engaged in travel agency and tour operator activities. Ranked third are 693 (9.9%) establishments engaged in office administrative and support activities. Figure 1 shows the percentage distribution of establishments by industry group in 2012.
Majority of establishments are in the National Capital Region (NCR)
At the regional level, more than half of the establishments were in the NCR with 3,960 or 56.7 percent. Central Visayas and CALABARZON placed far second and third with 600 (8.6%) and 554 (7.9%), respectively.
Call centers and other related activities industry employs the highest number of workers
The sector employed a total of 848,711 workers in 2012. Of the total workers, almost all (99.4%) were paid employees. Establishments with TE of 20 and over, employed 815,443 or 96.1 percent of the total employment while establishments with TE of less than 20 contributed 3.9 percent (33,268 employees) of the total.
Call centers and other related activities employed the largest number of workers totaling 400,156 (47.1%). Activities of employment placement agencies followed next with 225,769 employees (26.6%). Ranked third is private security activities with 125,723 employees (14.8%). 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 (68.7% or 583,239) of the total workforce. Central Visayas placed far second with 66,746 or 7.9 percent and followed by CALABARZON with 66,139 or 7.8 percent.
Workers in call centers and other related activities are the highest-paid employees
The sector paid a total compensation of PHP175.2 billion, equivalent to an average annual compensation of PHP207,686 per paid employee in 2012. Establishments with TE of 20 and over remunerated their workers with PHP169.9 billion or 97.0 percent of the total compensation while 3.0 percent of the total or PHP5.3 billion were contributed by establishments with TE of less than 20.
Industry wise, call center and other related activities paid the highest compensation of PHP134.8 billion comprising more than three fourths (77.0%) of the total. Activities of employment placement agencies placed second with PHP21.3 billion (12.2%). Private security activities ranked third with PHP7.6 billion or (4.3%).
Among regions, the NCR spent the biggest share in total compensation amounting to PHP140.7 billion (80.3%). Central Visayas and CALABARZON were in second and third place with PHP12.6 billion (7.2%) and PHP6.0 billion (3.4%), respectively.
Workers in call centers and other related activities were the highest-paid employees receiving an average annual compensation of PHP337,017. Employees of combined facilities support activities; renting and leasing of motor vehicles followed next with PHP215,834 and PHP209,284 average annual remuneration, 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 PHP241,572 followed by Bicol region with PHP214,657. This two regions surpassed the national average of PHP207,686.
Call centers and other related activities contribute the biggest share in income and expense
Income generated for the section in 2012 was estimated at PHP386.1 billion. Establishments with TE of 20 and over shared the largest income amounting to PHP365.5 billion or 94.7 percent. On the other hand, establishments with TE of less than 20 contributed PHP20.6 billion or 5.3 percent of the total income.
Call centers and other related activities had the biggest share with PHP277.0 billion or 71.7 percent of the sector’s total income. Activities of employment placement agencies ranked second with PHP47.7 billion (12.4%). Business support service activities, n.e.c. ranked third with PHP15.6 billion (4.0%).
Most of the income of the section came from NCR with PHP299.8 billion (77.7%). Central Visayas contributed PHP29.4 billion (7.6%) and CALABARZON shared PHP20.1 billion (5.2%).
Total expense including compensation reached PHP328.3 billion. Most of these expenses came from establishments with TE of 20 and over with PHP310.8 billion or 94.7 percent of the total. Establishments with TE of less than 20 spent PHP17.5 billion or 5.3 percent of the total.
Being the major contributor in income, call centers and other related activities also had the largest proportion in cost with PHP236.6 billion (72.1%) and was also followed by activities of employment placement agencies with PHP39.5 billion (12.0%). Business support service activities, n.e.c. still in third with PHP13.8 billion (4.2%). Figure 4 shows the top five industry groups in income and expense.
Regionwise, NCR incurred the highest expense amounting to PHP258.2 billion (78.7%) followed by Central Visayas with PHP24.3 billion or 7.4 percent while CALABARZON came in third with PHP16.3 billion or 5.0 percent of the total.
Income-expense ratio stands at PHP1.18
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 PHP1.82 followed by renting and leasing of personal and household goods with PHP1.41. Temporary employment agency activities came third with PHP1.29.
Value added amounts to PHP252.7 billion
Value added realized by Administrative and Support Service Activities sector totaled PHP252.7 billion in 2012. Call center activities registered the highest value added with PHP188.6 billion (74.6%). Activities of employment placement agencies ranked second with PHP31.3 billion (12.4%) and private security agencies ranked third with PHP8.7 billion (3.4%). Figure 5 shows the top five industry groups in value added.
Renting and leasing of motor vehicles has the highest labor productivity
Value added per employee, a measure of labor productivity, was estimated at PHP297.8 thousand per worker. Renting and leasing of motor vehicles led the sector with PHP2.9 million while other human resources provision has the least contribution with PHP31.5 thousand.
Gross additions to fixed assets reaches PHP6.7 billion
Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP6.7 billion in 2012. Call center and other related activities acquired the biggest gross addition to fixed assets with PHP4.8 billion. This was followed by business support service activities, n.e.c. and activities of employment placement agencies, with PHP666.9 million and PHP542.0 million, respectively.
Total change in inventories amounts to PHP117.9 million
Change in inventories, defined as the value of ending inventory less the beginning, amounted to PHP117.9 million in 2012. Among industries, renting and leasing of other machinery, equipment and tangible goods n.e.c. had the highest change in inventory with PHP123.6 million. Temporary employment agency activities and call centers and other related activities followed with PHP20.2 million and PHP15.1 million, respectively. On the other hand, eight of the 19 industry groups reported negative change in inventories.
Total subsidies received from the government amounts to PHP127.9 million
According to the census results, only three industry groups in the sector received subsidies from the government. Call centers and other related activities, renting and leasing of other machinery, equipment and tangible goods, n.e.c. and activities of employment placement agencies received PHP125.8 million, PHP1.2 million and PHP930 thousand, respectively.
E-commerce sales posts 2.6 billion
E-commerce refers to the selling of products or services over electronic systems. Four industry groups reported sales from e-commerce led by call centers and other related activities with a share of PHP2.6 billion.
This Special Release presents the final 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:
|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|
|TE Code||Total Employment||TE Code||Total Employment|
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 88.7 percent (3,230 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.
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.
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