Personal services for wellness industry dominates the sector
Preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that a total of 462 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Other services activities sector. Among industries, personal services for wellness, except sports activities industry garnered the highest number of establishments at 325 (70.3%). This was followed by repair of personal and household goods industry with 54 (11.7%). Laundry services had the smallest number of establishments at 19 (4.1%). The percentage distribution of other service activities sector by industry group is shown in Figure 1.
On the regional level, NCR had the highest number of establishments with 299 (64.7%). Central Visayas placed second with 43 establishments (9.3%). CALABARZON ranked third with 42 establishments (9.1%).
Personal services for wellness industry has the bulk of employees
Employment for the sector reached a total of 16,980 in 2014. Out of this total, 16,507 or 97.2 percent were paid employees while the remaining 473 or 2.8 percent were working owners and unpaid workers.
Personal services for wellness, except sports activities industry employed more than half (57.9 %) of the total employment of the sector, with 9,828 employees. Laundry services industry followed second, with 2,123 (12.5%) employees. Funeral and related activities and other personal service activities industries hired the least with a combined total of 1,373 (8.1%) Figure 2 shows the distribution of employment for other service activities sector by industry group.
Across regions, NCR had the highest number of employees with 11,230 (66.1%). Central Visayas and CALABARZON ranked second and third with 1,928 (11.4%) and 1,644 (9.7%) employees, respectively.
The sector recorded a national average of 37 employees per establishment. Laundry services industry posted the largest average at 112 employees. This was followed by repair of computers and communications equipment and repair of household goods industry, with 76 and 35 employees per establishment, respectively. Personal services for wellness, except sports activities industry recorded an average of 30 workers per establishment.
Employees of repair of computers and communications equipment receive the highest average annual compensation
Total compensation paid by the sector amounted to PHP2.5 billion, translating to an average annual compensation of PHP150.5 thousand per paid employee.
Across industry group, employees of repair of computers and communications equipment industry were paid the highest average annual compensation of PHP257.8 thousand. Second highest paid employees were those from funeral and related activities and other personal services, n.e.c. industries with a combined average of PHP155.1 thousand. On the other hand, employees of establishments under the industry of repair of personal and household goods were paid the lowest average annual pay of PHP128.1 thousand. Figure 3 shows the average annual compensation per employee for other service activities sector by industry group.
Among regions, establishments from NCR recorded a 70.5 percent share of compensation paid, with PHP1.8 billion. Central Visayas and CALABARZON followed with PHP382.6 million and PHP206.7 million, respectively.
Personal services for wellness industry emerges as top earners and top spenders
Income generated by the sector reached PHP14.6 billion in 2014. Personal services for wellness, except sports activities industry contributed the highest share with PHP8.1 billion or 55.6 percent of the total income. Second biggest income generating industry was repair of computers and communications equipment with PHP2.5 billion or 17.0 percent. Laundry services industry generated the least income with PHP907.7 million or 6.2 percent of the total.
Region wise, NCR generated the highest income of PHP11.3 billion (77.2%). This was followed by Central Visayas with PHP1.7 billion or 12.0 percent of the total income for the sector. CALABARZON generated the third highest income with PHP810.8 million or 5.5 percent.
Total expense incurred by the sector amounted to PHP12.6 billion in 2014. Personal services for wellness, except sports activities industry spent the highest among industries of PHP6.9 billion (54.7%). Repair of computers and communications equipment industry was second highest expender of PHP2.1 billion (16.7%). Laundry services incurred the least expense of PHP835.2 million. Figure 4 shows the income generated and expense incurred by other service activities sector by industry group.
Across regions, NCR was the top spender of PHP9.6 billion (76.7%), followed by Central Visayas and CALABARZON with PHP1.5 billion (11.8%) and PHP728.2 million (5.8%), respectively.
Income per peso expense ratio is 1.16 in 2014
The income generated per peso expense for other service activities sector stood at 1.16. This means that every peso spent in the operation of the business, a PHP1.16 income was generated. Industries of repair of computer and communications equipment and personal services for wellness, except sports activities, n.e.c..recorded a 1.18 income and expense ratio each. On the other hand, laundry services industry posted the least income of PHP1.09 for every peso spent.
Value added amounts to about PHP5.4 billion
Value added for the sector was estimated at about PHP5.4 billion. Personal services for wellness, except sports activities posted the highest value added amounting to PHP3.2 billion or 59.2 percent of the total value added. On the other hand, repair of personal and household goods industry reported the lowest with PHP351.9 million. Figure 5 shows the distribution of value added of other sector activities by industry group.
Across regions, NCR recorded the highest value added at PHP4.1 billion (74.9%). This was followed by Central Visayas, with PHP757.5 million (14.0%). CALABARZON ranked third, with an amount of PHP328.4 million (6.1%) value added.
Employees of repair of computers and communications equipment are the most labor productive
Value added per worker, a measure of labor productivity, was valued at PHP318.7 thousand. Employees of repair of computers and communications equipment had the largest average of PHP542.1 thousand among the industries. Second highest labor productivity was recorded by funeral and related activities and other personal service activities, n.e.c., with a combined labor productivity of PHP380.8 thousand. Repair of personal and household goods industry were the least productive with PHP183.8 thousand.
Region wise, workers in Central Visayas garnered the highest labor productivity with PHP392.9 thousand per employee, NCR followed second with PHP360.9 thousand and Davao Region ranked third, with PHP231.6 thousand.
Gross addition to tangible fixed assets totals PHP211.0 million
The value of gross addition to tangible fixed assets is capital expenditure less sale of fixed assets. The sector acquired a total of PHP211.0 million worth of fixed assets in 2014. Among industry groups, personal services for wellness, except sports activities industry recorded more than half (60.6%) of the total of PHP127.8 million. This was followed by repair of computers and communications equipment activities with about PHP62.9 million or 29.8 percent. The least gross addition to tangible fixed assets was recorded by combined industries of funeral and related activities and other personal service activities n.e.c. of PHP3.4 million.
Across regions, establishments in NCR acquired a 70.9 percent of the total addition to tangible fixed assets, with PHP149.6 million.
Laundry services records the highest change in inventories of PHP12.9 million
Change in inventories is defined as the value of ending less the beginning inventory. Laundry services posted the highest change in inventory of PHP12.9 million. Across regions, CALABARZON recorded the value of PHP14.7 million.
Subsidies and e-commerce
There were no reported subsidies and e-commerce transactions by other service activities sector in 2014.
This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Other Service Activities Sector for establishments with total employment of 20 and over in the formal sector of the economy.
The 2014 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for year 2014. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.
The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014..
Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC).
Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru e-mail.
The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2014 ASPBI is a nationwide undertaking confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector:
- Corporations and partnerships
- Cooperatives and foundations
- Single establishment with employment of 10 or more
- Single proprietorship with branches
Hence, the 2014 ASPBI covered only the following economic units:
- 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 Classification (PSIC).
The initial estimate of the 2014 LE shows that there are about 944,500 establishments in operation in the country for the year. About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.
Listed below are the 18 economic sectors within the scope of the 2014 ASPBI classified under the 2009 PSIC.
- Agriculture, Forestry and Fishing (A)
- Mining and Quarrying (B)
- Manufacturing (C)
- Electricity, Gas, Steam, and Air Conditioning Supply (D)
- Water Supply; Sewerage, Waste Management and Remediation Activities (E)
- Construction (F)
- Wholesale and Retail Trade; Repair and Maintenance of Motor Vehicles, 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)
- Other Service Activities (S)
Unit of Enumeration
The unit of enumeration for the 2014 ASPBI is 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) refers to the organizational structure or role of the establishment in the organization.
Legal Organization (LO) refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment.
Industrial Classification 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 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. 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.
Geographic Classification is grouping of establishments 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 PSGC as of December 31, 2014 was used for the 2014 ASPBI.
Selection of sample establishment for the 2014 ASPBI 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.
For Establishments with TE of 20 and Over
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections G, H, I, J, K, L, M, N, P, Q, R and S.
The estimate of the total of a characteristic for the non-certainty employment strata in TE of 20 and over for an industry domain in each region
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1,2,...17 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each regionin each region
j = 1,2,3,..., nsp establishments
Wspj = weight of the jth establishment in non-certainty employment strata in TE of 20 and over for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
b. Certainty Stratum
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...17 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region
j = 1,2,3,..., mcp establishments
mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region
c. Total Estimate for TE of 20 and Over
The estimate of the total of a characteristic for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where dp denotes the industry domains in each region
National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates for the particular industry domain from all the regions,
Weight Adjusment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as
Thus, the adjusted weight (W'sj) for employment stratum in TE 1-9 or TE 10-19 was
Ns = total number of establishments in employment stratum in TE 1-9 or TE 10-19 in the Sth industry domain
n's = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 Sth industry domain
For the non-certainty employment stratum for the selected industry domain with TE of 20-99, the adjusted weight (W'spj) was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)
n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the selected industry domain within each geographic domain (region)
Field operations of the 2014 ASPBI were scheduled from April to July 2015.
Total response rate for Other service activities sector with TE of 20 and over was 88.2 percent (216 out of 245 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, two establishments responded online.
Concepts and Definitions of Terms
Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Total Employment is the number of persons who worked in for the establishment as of November 15, 2014.
Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment. Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike. Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.
Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay and persons working for at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.
Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s 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 includes cash received and receivables for goods/products and by-products sold and services rendered. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser 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.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price 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.
Value Added is gross output less intermediate input. Gross output for other service activities sector is equal to the sum of total income (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 expense items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other expense; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Change in total inventories is computed as the total of ending inventory less the total beginning inventory.
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.
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.