2015 Annual Survey of Philippine Business and Industry (ASPBI) - Economy Wide All Establishments: Final Results

Reference Number: 

2018-280

Release Date: 

Friday, October 19, 2018

Wholesale and Retail Trade leads in terms of number of establishments

The Philippines had a total of 220,923 establishments in the formal sector of the economy in 2015, lower by 2.5 percent compared to 226,682 establishments recorded in 2014.

In terms of number of establishments, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles reported the highest with 98,674 establishments or 44.7 percent of the total. Accommodation and Food Service Activities accounted for 27,028 establishments or 12.2 percent of the total number of establishments in 2015. This was followed by Manufacturing (24,496) and Education (13,819) with 11.1 percent and 6.3 percent shares to the total, respectively. These top four sectors constitute 74.2 percent of the total establishments in 2015.

On the other hand, Electricity, Gas, Steam and Air Conditioning Supply; and Mining and Quarrying reported the least number with 261 and 228 establishments, respectively or a percent share of 0.1 percent each to the total count. (Figure 1)

One in every five workers is engaged in Manufacturing

Total employment in 2015 grew by 6.1 percent, from 5,504,161 workers in 2014 to  5,841,436 in 2015.

In 2015, Manufacturing had the highest number of workers with 1,293,811 or 22.1 percent of the total employment for the 18 sectors. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles followed next with 1,008,174 workers or 17.3 percent share to the total. Administrative and Support Service Activities ranked third with 952,862 workers or  16.3 percent share.

Mining and Quarrying recorded the least share in terms of number of employees with  32,249 or 0.6 percent of the total. (Figure 2)

Total Compensation Paid to Employees reaches 1.5 trillion pesos

Total compensation paid to employees in 2015 amounted to about PHP1.5 trillion, up by 11.9 percent from PHP1.4 trillion in 2014.

Manufacturing incurred the highest compensation of PHP335.1 billion, comprising more than one-fifth or 21.9 percent of the total compensation paid in 2015. Administrative and Support Service Activities and Financial and Insurance Activities followed with PHP256.2 billion (16.8%) and PHP186.4 billion (12.2%), respectively. Other Service Activities paid the least amount with PHP7.6 billion or 0.5 percent.

The average annual compensation in 2015 of PHP265,487 per employee recorded a 5.6 percent increase compared with the PHP251,504 average compensation in 2014. Workers in Electricity, Gas, Steam and Air Conditioning Supply sector received the highest average annual pay of PHP742,696 in 2015. This value went up by 6.3 percent from PHP698,489 in 2014.  Information and Communication sector placed second with an annual compensation of PHP587,625, an increase of 7.0 percent from the PHP549,103 annual compensation in 2014. Financial and Insurance Activities was the third highest with annual compensation of PHP555,862, an increase of 10.4 percent from PHP503,330 in 2014.

Arts, Entertainment and Recreation with annual compensation of PHP408,198 was the fourth in terms of annual compensation. It also posted the highest growth in average annual compensation of 18.9 percent from PHP343,381 in 2014 (Figure 3).

Manufacturing sector emerges as top income earner in 2015

Total income or total sales earned by establishments in 2015 amounted to PHP15.1 trillion, or an increase of 5.6 percent from PHP14.3 trillion total income earned in 2014.

Manufacturing, which had the highest income of PHP4.7 trillion in 2015, accounted for 31.0 percent of the total income. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles with an earning of PHP3.8 trillion (25.3%) in 2015 placed second, while Financial and Insurance Activities placed third with an income of PHP1.4 trillion (9.6%).

The following sectors contributed less than one percent share to total income in 2015:

• Water Supply; Sewerage, Waste Management and Remediation Activities, PHP88.2 billion or 0.6 percent
• Other Service Activities, PHP41.6 billion or 0.3 percent

Meanwhile, Construction sector recorded the highest increase in total income at 31.6 percent, from PHP360.4 billion in 2014 to PHP474.4 billion in 2015.

Manufacturing sector incurs the highest expense in 2015

Total expenses incurred in 2015 of all sectors amounted to about PHP12.9 trillion, a 4.9 percent increment from PHP12.3 trillion spent in 2014.

Manufacturing, registered the highest expense amounting to PHP4.2 trillion or 32.1 percent of the total. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles ranked second with PHP3.6 trillion or 27.8 percent of total expense. This was followed by Financial and Insurance Activities with PHP1.0 trillion (7.5%) and Electricity, Gas, Steam and Air Conditioning Supply with PHP0.7 trillion (5.1%). Other Service Activities spent the least at PHP37.8 billion or 0.3 percent share to the total (Figure 4).

Value Added amounts to PHP4.6 trillion

Value added, an indicator that measures the value of output minus the intermediate inputs, stood at PHP4.6 trillion in 2015. It expanded by 15.4 percent from PHP4.0 trillion generated in 2014.

Manufacturing was the only sector that reached the trillion mark in value added. It contributed the highest share among sectors at PHP1.2 trillion or 25.8 percent of the total value added. Financial and Insurance Activities registered second at PHP759.0 billion or 16.6 percent of the total. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles followed with PHP430.1 billion or 9.4 percent of the total. Agriculture, Forestry and Fishing and Other Service Activities contributed less than one percent share to total value added with 0.8 percent (PHP37.0 billion) and 0.3 percent (PHP14.4 billion), respectively (Figure 5).

Workers of Electricity, Gas, Steam and Air Conditioning Supply most productive

Labor productivity is the ratio of value added to the number of workers. At the national level, value added per worker was recorded at PHP780,635 in 2015, higher by 8.7 percent compared with the PHP718,016 labor productivity recorded in 2014. Using this indicator, Electricity, Gas, Steam and Air Conditioning Supply came up as the most productive sector in 2015, with value added per worker of PHP4.4 million. Real Estate Activities was the second most productive sector with labor productivity of PHP3.0 million.

The seven sectors with million mark labor productivity were:

• Mining and Quarrying, PHP2.5 million
• Financial and Insurance Activities, PHP2.2 million
• Information and Communication, PHP1.5 million
• Water Supply; Sewerage, Waste Management and Remediation Activities, PHP1.4 million
• Arts, Entertainment and Recreation, PHP1.3 million
• Transportation and Storage, PHP1.1 million
• Professional, Scientific and Technical Activities, PHP1.1 million

Workers in Other Service Activities sector were the least labor productive with labor productivity of PHP185.0 thousand.

Subsidies received from the government decrease by 14.3 percent

Total subsidies in 2015 amounted to PHP35.4 billion, a decrease of 14.3 percent from the total subsidies granted to establishments in 2014 at PHP41.3 billion.

Electricity, Gas, Steam and Air Conditioning Supply received the biggest amount of subsidy equivalent to PHP11.0 billion or 31.0 percent share to the total. Transportation and Storage received the second biggest subsidy amounting to PHP9.5 billion or 26.9 percent share to the total. Subsidies provided to Wholesale and Retail Trade; Repair of Motor Vehicles and  Motorcycles, Agriculture, Forestry and Fishing and Manufacturing were PHP3.8 billion, PHP3.1 billion and PHP2.2 billion, respectively.

Construction, Accommodation and Food Service Activities, and Other Service Activities were not provided with government subsidy in 2015.

E–commerce sales accounts for 0.3 percent of total income

Sales from e-commerce transactions in 2015 reached PHP44.4 billion, accounting for 0.3 percent of total income in 2015.

Among the 18 sectors, Transportation and Storage recorded the largest sales through e-commerce transactions which amounted to PHP31.5 billion or 5.3 percent share to total income for the sector. Accommodation and Food Service Activities followed with PHP4.9 billion sales from e-commerce or a share of 1.0 percent to the sector’s total income. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles placed third with e-commerce sales of PHP2.6 billion or 0.1 percent of the sector’s total income.

Two other sectors that posted billion mark on e-commerce sales were:

• Arts, Entertainment and Recreation, PHP2.4 billion
• Information and Communication, PHP2.0 billion

The following sectors do not have e-commerce transactions in 2015:

• Agriculture, Forestry and Fishing
• Mining and Quarrying
• Electricity, Gas, Steam and Air Conditioning Supply
• Water Supply; Sewerage, Waste Management and Remediation Activities
• Construction
• Financial and Insurance Activities
• Real Estate Activities
• Professional, Scientific and Technical Activities
• Human Health and Social Work Activities
• Other Service Activities

 

 

 

 

FOR THE OIC-DEPUTY NATIONAL STATISTICIAN:

 

(Sgd.) WILMA A. GUILLEN
Assistant National Statistician, SSSS
Sectoral Statistics Office
Officer-in-Charge

 


 

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2015 ASPBI for the 18 sectors of the economy for all establishments.

The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provides information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country. The 2015 Survey on Information and Communication Technology (SICT) was undertaken as a rider to this survey.

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 level by sector based on the 2009 Philippine Standard Industrial Classification (PSIC).

Legal Authority

The conduct of 2015 ASPBI is authorized under Republic Act (RA) 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 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 partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches

Thus, the 2015 ASPBI covered only the following economic units:

• All establishments with total employment (TE) of 10 and over, 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 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.

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.

Economic Organization relates 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 that owns the establishment.  This provides the legal basis for ownership.  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 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment (TE) as of a specific date. TE refers to the total number of persons who work in or for the establishment.

Geographic Classification refers to the classification of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification.

Methodology

Sampling Design

The 2015 ASPBI utilized stratified systematic sampling with 5-digit PSIC serving as the 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 (sub-class) of the 2009 PSIC serves as the industry domain.

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)

The estimate of the total of a characteristic () for the non-certainty employment strata in an industry domain in each region,

where:

s          denotes the non-certainty employment strata in TE of 20 to 99
p          = 1, 2,..., 18 regions (geographic domains)
xspj      = value of the jth establishment in the non-certainty employment strata in TE of 20 to 99 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 to 99 for an industry domain in each region

Nsp     = total number of establishments in the non-certainty employment strata in TE of 20 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 99for an industry domain in each region

b. Certainty Stratum (TE 100 and over)

The value of the total of a characteristic () for the certainty employment stratum in an industry domain in each region,

where:  

c          denotes the certainty employment strata in TE 100 and over
p          = 1, 2,..., 18 regions (geographic domains)
xcpj      = value of the jth establishment in the certainty employment strata in TE 100 and over in an industry domain within each region
j           = 1, 2, 3, …,mcp establishments
mcp     = number of establishments in the certainty employment strata in TE 100 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 (geographic domain) was obtained by aggregating the estimates for all employment strata (non-

certainty and certainty) in the same industry domain,

Where dp denotes the industry domains in each region.

National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates () for the particular industry domain from all the regions.

For Establishments with TE of Less Than 20

Non-Certainty Stratum

The estimate of the total of a characteristic () for the non-certainty employment stratum TE less than 20 in the sth industry domain was

where:

s         denotes the non-certainty employment strata in TE of less than 20
Xsj       = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j          = 1,2,3..., ns establishments
Wsj     = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain

Ns      = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns       = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain

Weight Adjustment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, 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

where:

Ns        = total number of establisments in the 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 in the sth industry domain

For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was

where:

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 20-99 for the selected industry domain within each geographic domain (region)

Questionnaire Design

There are seven types of questionnaires used for the survey which will capture data for establishments of the 18 sectors of economy as defined in the 2009 PSIC. A clearance number and expiry date is shown at the upper right hand corner of the cover page of the questionnaire. The questionnaire is administered to the sample establishment through the establishment itself or a reporting unit. An address stub which contains information on the business name and complete address of the sample establishment is pasted in every questionnaire to guide the field staff on where to deliver the questionnaire.

A web-based version of the 2015 ASPBI questionnaires was available for accomplishment by sample establishment online at the PSA website, https://aspbi.psa.gov.ph.

Response Rate

The response rate for all establishments was 94.0 percent (28,715 out of 30,552 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out and out of scope establishments, etc.

Of the total responses, 921 establishments responded online.

Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources like financial statements from Securities and Exchange Commission (SEC). However, reports of establishments in the certainty stratum, which were found to be duplicates and out of business in 2015 were not imputed.

The table below shows the response rate by sector and the number of establishments which responded on-line.
 

TABLE 1  2015 ASPBI Response Rates for All Establishments

2009 PSIC Industry Description Number of Samples Number of Responding Establishments Response Rate (%) Number of Establishments Responded On-line
Philippines 30,552 28,715 94.0 921
A Agriculture, Forestry and Fishing 1,066 1,014 95.1 16
B Mining and Quarrying 331 296 89.4 11
C Manufacturing 6,628 6,308 95.2 189
D Electricity, Gas, Steam and Air-Conditioning Supply 275 268 97.5 29
E Water Supply; Sewerage, Waste Management and Remediation Activities 642 609 94.9 31
F Construction 835 800 95.8 29
G Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles 6,677 6,177 92.5 188
H Transportation and Storage 980 922 94.1 19
I Accommodation and Food Service Activities 1,327 1,232 92.8 15
J Information and Communication 3,754 3,573 95.2 135
K Financial and Insurance Activities 1,533 1,508 98.4 81
L Real Estates Activities 349 305 87.4 15
M Professional, Scientific and Technical Activities 770 710 92.2 15
N Administrative and Support Service Activities 2,105 1,898 90.2 67
P Education 1,327 1,232 92.8 15
Q Human Health and Social Work Activities 770 715 92.9 27
R Arts, Entertainment and Recreation 386 355 92.0 8
S Other Service Activities 797 793 99.5 3

Limitation of Data

The 2015 ASPBI covered only the formal sector of the economy.

Concepts and Definitions of Terms

Establishment is as an economic unit under a single ownership or 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.

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.

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.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, 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 is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and other costs.

Value of output (for industrial sectors A, B, D, E & F) represents the sum of the receipts from products and by-products sold, income from industrial services done for others, 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.

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.

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.

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.

 

 

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