Call centers and other related activities record the highest number of establishments
Preliminary results of the 2015 Annual Survey of Philippine Business and Industry showed that a total of 1,677 establishments with total employment of 20 and over in the formal sector of the economy were engaged in Administrative and Support Service Activities sector.
Call centers and other related activities recorded the highest number of establishments with 490 or 29.2 percent of the total. Activities of employment placement agencies followed with 486 (29.0%). Establishments engaged in private security activities ranked third with 331 (19.7%). All other industry groups contributed about 9.8 percent to the total. Figure 1 shows the percentage distribution of establishments by industry group in 2015.
Across regions, the National Capital Region (NCR) had the most number of establishments with 1,085 (64.7%). Central Visayas and CALABARZON followed next with 133 (7.9%) and 112 (6.7%) establishments, respectively.
Call centers and other related activities employ the most number of workers
The sector employed a total of 908,643 workers in 2015. Of the total, 99.95 percent were paid employees and the rest were working owners or unpaid workers.
Call centers and other related activities employed the most number of workers with 492,746 (54.2%). Activities of employment placement agencies placed second with 243,633 employees (26.8%). Ranked third is private security activities with 98,333 employees (10.8%). Figure 2 shows the distribution of employment by industry group.
Of the 18 regions, NCR posted the biggest share in employment with 575,592 or 63.3 percent of the total workforce. Central Visayas and CALABARZON placed second and third with 82,586 (9.1%) and 65,415 (7.2%), respectively. On the other hand, Cagayan Valley registered the least number of employment with 632 (0.1%).
Workers in office administrative and support activities are the highest-paid employees
In 2015, the sector paid a total compensation of PHP247.5 billion, translating to an average annual compensation of PHP272,457 per employee. Call centers and other related activities paid the highest compensation of PHP195.7 billion or 79.1 percent of the total. Activities of employment placement agencies followed with PHP32.9 billion (13.3%). Private security activities ranked third with PHP6.7 billion or 2.7 percent. However, renting and leasing of motor vehicles shared the lowest amount with PHP12.8 million (0.01%).
Among regions, the NCR spent the biggest share in total compensation amounting to PHP188.3 billion (76.1%). Central Visayas placed second with PHP19.3 billion (7.8%).
Office administrative and support activities were the highest-paid employees receiving an average compensation of PHP520,486 per annum. Employees of business support service activities, n.e.c. and call centers and other related activities followed next with PHP466,262 and PHP397,321, respectively. Employees in temporary employment agency activities were paid the lowest average annual compensation amounting to PHP46,437. Figure 3 shows the average annual compensation by industry for the sector.
Employees working in NCR received the highest average annual compensation of PHP327,366 while those employed in Northern Mindanao received the lowest with PHP67,893.
Call centers and other related activities emerges as top earner in income and expense
Income generated by the sector in 2015 was estimated at PHP426.5 billion.
Call centers and other related activities, the top income generator, accounted for 79.5 percent of the total income with PHP339.2 billion. Activities of employment placement agencies followed next with PHP47.6 billion (11.2%). Private security activities ranked third with PHP9.5 billion (2.2%).
At the regional level, most of the income of the sector came from NCR with PHP329.6 billion (77.3%). Central Visayas contributed PHP34.5 billion (8.1%) and CALABARZON shared PHP15.4 billion (3.6%).
Total expense including compensation reached PHP380.7 billion. Being the major contributors in income, call centers and other related activities and activities of employment placement activities, also had the largest proportion in expense with PHP301.0 billion (79.1%) and PHP43.9 billion (11.5%), respectively. On the other hand, renting and leasing of motor vehicles incurred the lowest expense for the sector with PHP44.3 million. Figure 4 shows the top five industry groups in income and expense.
By region, NCR incurred the highest expense amounting to PHP295.2 billion (77.6%) while Cagayan Valley recorded the least with PHP74.6 million (0.02%).
Income-expense ratio stands at 1.12
The income generated per peso expense stood at PHP1.12. Among industries, investigation activities recorded the highest income-expense ratio with 1.55, followed by renting and leasing of motor vehicles with 1.37. Renting and leasing of other machinery, equipment and tangible goods, n.e.c. and combined facilities support activities both came in third with 1.21.
Among regions, Negros Island region reported the highest income per peso expense of 1.22.
Value added amounts to PHP313.7 billion
Value added was estimated at PHP313.7 billion in 2015. The top three industry groups contributed more than ninety percent of the total value added for the sector with their respective shares as follows: call centers and other related activities registered the highest value added with PHP248.4 billion (79.2%); activities of employment placement agencies, PHP38.9 billion (12.4%); and private security agencies, PHP7.9 billion (2.5%).
Across regions, NCR recorded the highest share to total value added with PHP 239.3 billion or 76.3 percent followed by Central Visayas with PHP25.0 billion or 8.0 percent. However, Cagayan Valley had the least value added amounting to PHP77.1 million.
Renting and leasing of other machinery, equipment and tangible goods has the highest labor productivity
Value added per employee, a measure of labor productivity, was estimated at PHP345,242. Renting and leasing of other machinery, equipment and tangible goods led the sector with PHP905.6 thousand. Organization of conventions and trade shows followed with PHP772.7 thousand. Business support service activities, n.e.c. ranked third with PHP738.9 thousand. On the other hand, temporary employment agency activities had the least contribution with PHP56.3 thousand.
By region, NCR had the highest labor productivity with PHP415.7 thousand followed by Bicol region with PHP404.6 thousand. SOCCSKSARGEN had the least share with PHP78.6 thousand. Figure 4 shows the top five industry groups in value added per employee.
Gross additions to fixed assets reaches PHP13.0 billion
Gross additions to fixed assets (capital expenditures less sale of fixed assets) reached PHP13.0 billion in 2015.
Call centers and other related activities shared the biggest gross additions to fixed assets with PHP10.5 billion (80.8%). This was followed by activities of employment placement agencies and travel agency and tour operator activities with PHP1.5 billion (11.8%) and PHP453.3 million (3.5%), respectively. However, temporary employment agency activities had the least with PHP317.0 thousand.
By region, NCR contributed the largest share with PHP10.2 billion or 78.4 percent of the total.
Total change in inventory amounts to PHP62.6 million
Total change in inventories (ending less beginning inventory) was estimated at PHP62.6 billion in 2015. Activities of employment placement agencies had the highest change in inventory with PHP114.3 million. Renting and leasing of other machinery, equipment and tangible goods, n.e.c. and investigation activities followed with PHP33.7 million and PHP3.2 million, respectively.
Call centers and other related activities has the highest subsidy from the government
Total subsidies granted to the sector reached PHP1.2 billion in 2015. Most of the subsidy was granted to call centers and other related activities with PHP1.2 billion or 99.8 percent of the total.
Sales from e-commerce totals to PHP870.5 million in 2015
E-commerce sales amounted to PHP870.5 million in 2015. Call centers and other related activities contributes the major share in e-commerce with PHP743.3 million or 85.4 percent of the total sales from e-commerce.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Administrative and Support Service Activities sector for establishments with total employment of 20 and over.
The 2015 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 in the entire country for the year 2015.
The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.
Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.
Data are presented at the national and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC)..
The conduct of the 2015 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 2015 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
- 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 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)
- Other Service Activities (S)
The survey was confined to the formal sector of the economy, which consists of the following:
- Corporations and partnerships
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorship with branches
Hence, the 2015 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).
Frame of Establishments
The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2015 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location.
Classification of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial Classification of an economic unit was 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 of an establishment 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 refers to the 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, 2015 was used for the 2015 ASPBI.
Selection of sample establishment for the 2015 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, the 18 administrative regions serve as the geographic domains while the 5-digit level of the 2009 PSIC serves as the industry domains.
Estimation Procedure 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 A,C,E,F,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 to 49 and TE 50 TO 99
p = 1, 2,..., 18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata in TE of and over for an industry domain in each region
j = 1,2,3,..., nsp establishments
Wspj = weight of the jth establishment in the 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 to 49 and TE 50 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 49 and TE 50 to 99 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over 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'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was
Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the 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 industry domain within each geographic domain (region)
Response rate for Administrative and Support Service Activities sector for establishments with TE of 20 and over was 94.0 percent (1526 out of 1623 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.
Of the total responses, fifty-eight establishments responded online.
Limitation of Data
Only the formal sector was covered in the survey.
Concepts and Definitions of Terms
Establishment is defined as 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.
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, 2015.
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 is the sum of 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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
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.
Valued added is gross output less intermediate input. Gross output for Administrative and Support Service Activities sector is 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 inventory. Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others; goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.