Establishments with Total Employment of 20 and Over
This report highlights the preliminary results of the 2012 Census of Philippine Business and Industry for establishments with total employment of 20 and over classified under the three broad industry groups namely: Agriculture, Industry and Services. Agriculture sector includes Agriculture, Forestry and Fishing (sector A) while the Mining and Quarrying (B), Manufacturing( C), Electricity, Gas, Steam and Air-Conditioning Supply (D), Water Supply; Sewerage, Waste Management and Remediation Activities (E), and Construction (F) comprised the Industry sector.
On the other hand, the Services sector consisted of the 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), and Other Service Activities (O).
Services sector dominates the economy; 4 out of 10 establishments in NCR
Total number of establishments across the country in 2012 reached 36,699 or 69.3 percent higher compared to 21,678 recorded establishments in 2006 CPBI. This can be translated to an average increase of 2,504 establishments per year.
By broad industry group, as shown in Figure 1, about three-fourths of the total number of establishments in 2012 were engaged in the Services sector (26,976 or 73.5%). It posted an accelerated growth of 86.5 percent from 14,463 establishments in 2006. The Industry sector with 8,867 establishments accounted for 24.2 percent of the total number of establishments in 2012 and grew by 40.4 percent from 6,314 establishments in 2006. Agriculture recorded 856 establishments or 2.3 percent share of the total. It declined by 5.0 percent from 901 establishments in 2006.
The ranks of these sectors remained the same in 2006 with Services getting 66.7 percent, Industry, 29.1 percent and Agriculture, 4.2 percent. A decrease in the number of establishments in the Agriculture sector was noted, shifting these establishments to either Industry or Services sectors in 2012.
Across regions, 14,610 establishments or 39.8 percent were located in the National Capital Region (NCR). CALABARZON with 5,149 establishments or 14.0 percent ranked second followed by Central Luzon with 3,345 establishments or 9.1 percent.
Cagayan Valley posted the fastest growth of 153.6 percent in terms of number of establishments from 207 in 2006 to 525 in 2012. Eastern Visayas came in next with 124.6 percent growth from 276 establishments to 620 followed by MIMAROPA with a growth of 120.2 percent from 183 establishments in 2006 to 403.
Six out of ten work in Services; NCR reports bulk of employees
Industry-wide, total employment in 2012 grew by 47.7 percent to 4,022,101 from 2,723,922 workers in 2006. For the reference period (Figure 2), Services sector had the highest number of workers (2,544,920), accounting for 63.3 percent of the total employment in 2012. It expanded by 79.8 percent from 1,415,400 in 2006. Industry sector followed with 1,352,633 workers or 33.6 percent share to total employment, higher by 15.3 percent from 1,173,021 recorded in 2006. Agriculture with 124,548 workers or 3.1 percent share to total decreased by 8.1 percent from 135,501 workers in 2006.
At the national level, average number of workers was recorded at 110 in 2012, lower by 16 workers from 126 in 2006. Services sector reported lower than the national average with an average of 94 workers per establishment. Highest average number of workers was recorded for Industry sector at 153 while Agriculture registered an average number of workers of 146 per establishment.
Of the 17 regions nationwide, as expected NCR had the highest employment with 46.2 percent share (1,856,229). CALABARZON (673,540 or 16.7%) and Central Visayas (358,210 or 8.9%) settled for second and third posts. Autonomous Region in Muslim Mindanao (ARMM) contributed the least shares (8,806 or 0.2%).
Highest average number of workers was recorded in SOCCSKSARGEN at 137. Three other regions registered more than the national average namely: CALABARZON, 131; NCR, 127; and Central Visayas, 116. Except for NCR, all other regions exhibited negative growth in total employment from 2006 to 2012.
Total Compensation in 2012 reaches 1.03 trillion pesos
Total compensation consists of gross salaries and wages paid to employees including employer’s contribution to Social Security Services (SSS), Government Social Insurance Service (GSIS) and other contributions paid by establishments in 2012. Total national compensation in 2012 almost doubled in amount, accelerating by 95.5 percent to PHP1.03 trillion as compared to PHP526.87 billion recorded in 2006. This was mainly attributed to the 115.3 percent increase in compensation paid to the Services sector. Moreover, compensation paid to Industry and Agriculture sectors also rose by 70.5 percent and 39.6 percent, respectively from 2006 to 2012.
More than three-fifths (63.3%) of the total compensation paid in 2012 were contributed by Services sector (PHP651.65 billion). Industry sector accounted for 34.9 percent (PHP359.61 billion) of the total compensation paid in 2012 while the share for Agriculture was only 1.8 percent of the total compensation or PHP18.53 billion.
Average monthly compensation in 2012 was valued at PHP21,489, a 32.6 percent increase compared to PHP16,205 in 2006. Workers in the Industry sector received the highest average monthly pay of PHP22,236 in 2012. It went up by 47.9 percent from PHP15,031 in 2006. This was followed by Services sector with PHP21,531 which increased by 19.9 percent from PHP17,952 in 2006. Among the three major groups, Agriculture with PHP12,481 exhibited the highest growth of 52.3 percent in average monthly compensation from PHP8,197 in 2006.
NCR with PHP27,603 topped other regions in terms of average monthly compensation. The Cordillera Administrative Region placed second with PHP20,259 and CALABARZON, third with PHP19,678. Except for MIMAROPA (-7.3%), all other regions recorded positive growth in average monthly compensation.
Industry sectors top revenue earner in 2012; NCR tops in spending
Total revenue or total income earned by establishments with TE 20 and over in 2012 grew by 75.8 percent to PHP11.44 trillion from PHP6.50 trillion in 2006. This was brought about by the increase in number of Services establishments in 2012. Almost all of the total income earned in 2012 was contributed by Industry (PHP5.67 trillion or 49.6%) and Services (PHP5.66 trillion or 49.5%) sectors, each contributing almost half of the total. They have a corresponding growth rate of 50.3 and 112.6 percent from PHP3.77 trillion and PHP2.66 trillion, respectively in 2006. Agriculture with recorded income of PHP108.69 billion shared only 1.0 percent of the total and improved by 57.5 percent from PHP68.99 billion in 2006.
Figure 4 shows that the percent share in total income of Industry and Agriculture sectors in 2006 shifted to Services sector in 2012 (Figure 4).
Regionwise, share of NCR to total income was two-fifths (PHP5.29 trillion or 46.3%) and CALABARZON, one-fifth (PHP2.62 trillion or 22.9%). Central Luzon contributed almost one-tenth (PHP1.03 trillion or 9.0%) while ARMM had the least share of 0.05 percent to total income in 2012 (PHP5.46 billion). Among the 17 regions, only Eastern Visayas posted a negative growth of 0.4 percent in total income from PHP153.39 billion in 2006 to PHP152.74 billion in 2012.
Industry sector incurs highest cost
Total cost incurred in 2012, whether paid or payable amounted to PHP8.83 trillion, higher by 73.7 percent over the PHP5.08 trillion spent in 2006. Industry sector, the highest spender incurred PHP4.48 trillion or more than half (50.7%) of the total cost and increased by 44.0 percent from PHP3.10 trillion in 2006. Services sector on the other hand, spent PHP4.26 trillion, a 120.8 percent increment from PHP1.93 trillion spent in 2006, the highest growth among the three major groups.
By region, NCR spent the largest as it incurred PHP4.0 trillion or 45.3 percent of the total, CALABARZON and Central Luzon followed next with PHP1.97 trillion (22.3%) and PHP894.23 billion (10.1%), respectively.
Income per peso cost computed as the ratio of total income to total cost was computed at 1.29 in 2012. This means that in terms of income, 1.29 pesos was realized for every peso spent in 2012.
Value Added amounts to PHP3.25 trillion; NCR tops
Value added, an indicator which measures the value of output minus the intermediate inputs, generated by establishments with TE of 20 and over amounted to PHP3.25 trillion, an increase of 70.4 percent from PHP1.91 trillion recorded in 2006.
More than half (52.5%) of the total value added in 2012 was contributed by Services sector with PHP1.71 trillion, representing 72.1 percent increase from PHP992.06 billion recorded in 2006. Industry sector came in next with PHP1.52 trillion accounting for 46.7 percent and rose by 69.3 percent from PHP897.80 billion in 2006. Agriculture with PHP23.98 billion value added shared 0.7 percent to total, higher by 31.8 percent from 18.19 billion reported in 2006.
NCR with PHP1.67 trillion led other regions in terms of value added contribution. It was higher by 63.0 percent over the 2006 figure of PHP1.02 trillion. CALABARZON which comprised 22.4 percent ranked second with PHP727.62 billion, up by 88.9 percent from PHP385.10 billion in 2006. Central Visayas ranked third with PHP200.65 billion, accelerated by 114.5 percent from PHP93.54 billion in 2006. ARMM lagged behind contributing 0.04 percent share to total value added and declined by 21.0 percent from PHP1.60 billion in 2006 to PHP1.27 billion in 2012.
Workers in Industry sector most productive, so does MIMAROPA
Labor productivity is measured in several ways. Value added per worker is one method. This indicator is computed by dividing the Total Value Added by the Total Employment. At the national level, value added per worker was recorded at PHP808.5 thousand in 2012, 15.4 percent higher compared to PHP700.5 thousand in 2006. Using this indicator, Industry sector was the most productive in 2012, with value added of PHP1.12 million and positive growth of 46.8 percent from PHP765.4 thousand in 2006. Services sector recorded PHP671.0 thousand value added per worker in 2012, 4.3 percent lower than the 2006 level of PHP700.9 thousand. Agriculture remained to be the least productive with PHP192.5 thousand and a positive growth of 43.4 percent from PHP134.2 thousand in 2006.
By region, MIMAROPA had the highest labor productivity at PHP2.87 million. Aside from MIMAROPA, Cordillera Administrative Region, CALABARZON and NCR with value added per worker of PHP1.35 million, PHP1.08 million and PHP899.9 thousand, respectively, exceeded the national average. However, CAR registered 3.3 percent decline in value added per worker from PHP1.39 million in 2006. ARMM was recorded least labor productive with PHP239.1 thousand in 2006 and PHP143.8 thousand in 2012.
Subsidies more than four times in 2012
Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry.
Total subsidies received by establishments with TE of 20 and over summed up to PHP51.12 billion, four times more than the amount granted to establishments in 2006 (PHP11.95 billion). Services sector received the largest amount of subsidy equivalent to PHP38.61 billion or 75.5 percent share to total, an increase of 1,204.5 percent from PHP2.96 billion in 2006. The increase was thirteen times its value in 2006. Subsidies received by Agriculture sector also soared to 1,964.2 percent to PHP 3.53 billion from PHP170.92 million in 2006, rose twenty times more than its amount in 2006. For the six-year period, Industry sector only received PHP8.99 billion subsidy from the government, an increase of 1.8 percent from PHP8.82 billion in 2006.
At the regional level, NCR received the highest amount of subsidies in 2012 at PHP44.72 billion or 87.5 percent of the total. CALABARZON accounted for 3.0 percent or PHP1.52 billion and Northern Mindanao at PHP1.19 billion or 2.3 percent share.
Sales from E –commerce amounts to PHP105.94 billion
E-commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks. This is a new data item gathered in the 2012 CPBI. E-commerce sales in 2012 reached PHP105.94 billion, accounting for 0.9 percent of total income in 2012.
Among the three industry groups, Services sector reported the highest sales through e-commerce amounting to PHP81.28 billion or 76.7 percent share to the total e-commerce sales in 2012. Sixty-six percent of these were contributed by Transport and Storage registering PHP53.42 billion sales from e-commerce. Wholesale and retail trade recorded PHP23.97 billion or 29.5 percent share and Administrative and Support Service Activities with PHP2.63 billion or 3.2 percent share to the total sales from e-commerce of Services sector.
No sales from e-commerce were reported for Real Estate Activities, Professional, Scientific and Technical Activities, Human Health and Social Work Activities as well as for Agriculture sector in 2012.
Among Industry sector, only Manufacturing reported sales through e-commerce amounting to PHP24.7 billion. This accounts for 0.4 percent of the total income of the Industry sector in 2012.
The top three regions in terms of e-commerce sales were NCR with PHP88.43 billion (83.5%) or 1.67 percent of the total income of the region, Central Visayas with PHP10.58 billion (10.0%) and CALABARZON with PHP2.63 billion (2.5%). However, no sales from e-commerce were reported for MIMAROPA, Eastern Visayas, Zamboanga Peninsula, CARAGA and ARMM.
Total assets amounts to PHP21.2 trillion in 2012
Another new data item in the 2012 CPBI is total assets. This refers to 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.
Total assets acquired by establishments with TE 20 and over was valued at PHP21.2 trillion in 2012. Three-fourths (75.0%) of the total assets in 2012 was acquired by Services sector with PHP15.91 trillion, the highest among the three broad industry groups. Industry sector followed with total acquired assets of PHP5.12 trillion or 24.2 percent share of the total and Agriculture with PHP168.31 billion or 0.8 percent of the total.
Among the Services sector, Financial and Insurance Activities accounted for the biggest share of 56.1 percent amounting to PHP8.93 trillion to total assets of the Services sector in 2012. Other sectors which acquired more than trillion mark in total assets were Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles, PHP1.52 trillion; Real Estate Activities, PHP1.10 trillion; and Professional, Scientific and Technical Activities, PHP1.06 trillion.
Among the Industry sector, Manufacturing accounted for 60.8 percent of the total acquired assets of the sector with PHP3.11 trillion followed by Electricity, Gas, Steam and Air-Conditioning Supply with PHP1.18 trillion or 23.1 percent share.
Regionwise, NCR accounted for the largest amount of total assets at PHP15.16 trillion (71.5%). At far was CALABARZON with PHP1.94 trillion or 9.1 percent of the total and Central Luzon with PHP919.04 billion or 4.3 percent.