Personal services for wellness industry dominates the sectorr
Based on the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, there were 422 establishments with total employment (TE) of 20 and over in the formal sector of the economy that were engaged in Other Service Activities sector.
Among industries, personal services for wellness, except sports activities industry registered the highest number of establishments at 293(69.4%). This was followed by repair of personal and household goods and funeral and related activities industries with 51(12.1%) and 31(7.3%), respectively. The percentage distribution of Other Service Activities sector by industry group is shown in Figure 1.
At the regional level, National Capital Region (NCR) recorded the highest number of establishments comprising more than half (67.1%) or 283 establishments to total. CALABARZON and Central Visayas followed with 40(9.5%) establishments and 36(8.5%) establishments, respectively.
Personal services for wellness industry has the bulk of employees
Other Service Activities sector hired a total of 15,864 workers in 2015. Out of this total, 15,482 or 97.6 percent were paid employees while the remaining 382 or 2.4 percent were working owners and unpaid workers.
Personal services for wellness, except sports activities industry employed more than half (60.1%) of the total employment of the sector, with 9,542 workers. Laundry services industry followed with 1,912(12.1%) employees. Other personal service activities industry hired the least with 201(1.3%). Figure 2 shows the distribution of employment of the sector by industry group.
The top three regions with the most number of establishments also employed the highest number of workers of more than 1,000 each and these are:
- NCR with 10,600 workers or 66.8 percent
- CALABARZON with 1,868 workers or 11.8 percent
- Central Visayas with 1,622 workers or 10.2 percent
The sector recorded a national average of 38 workers per establishment. Laundry services industry posted the largest average of 101 workers per establishment. This was followed by repair of computers and communications equipment with 70 workers per establishment. Other personal service activities, n.e.c. industry recorded the least with an average of 29 workers per establishment.
Repair of computers and communications equipment industry pay the highest average annual compensation
Total compensation paid by the sector amounted to PHP2.5 billion, translating to an average annual compensation of PHP161.0 thousand per employee.
Among industries, establishments engaged in personal services for wellness, except sports activities spent the highest compensation of PHP1.4 billion, comprising more than half (55.0%) of the total. Repair of computers and communications equipment and laundry services industries followed far second and third with PHP425.1 million (17.1%) and PHP320.3 million (12.9%), respectively.
Repair of computer and communications equipment industry paid the highest average annual compensation of PHP289.4 thousand per employee. However, repair of personal and household goods disbursed the lowest average annual compensation of PHP102.7 thousand per employee. Figure 3 shows the average annual compensation per employee of the sector by industry group.
Among regions, Central Visayas paid the highest average annual compensation of PHP235,517 per employee. NCR and CALABARZON followed with a payment of PHP165,043 and PHP139,933 per employee, respectively.
Personal services for wellness industry emerges as top earners and top spenders
Income generated by the sector for establishments with TE of 20 and over reached PHP10.6 billion in 2015.
Personal services for wellness, except sports activities industry contributed the highest income of PHP5.7 billion or 54.2 percent of the total income. Next biggest income generating industry was repair of computers and communications equipment with PHP1.5 billion or 14.2 percent. Other personal service activities, n.e.c industry generated the lowest income of PHP75.5 million or 0.7 percent of the total.
Region wise, NCR generated the highest income of PHP7.4 billion (70.0%). This was followed by Central Visayas with PHP1.5 billion or 14.2 percent of the total income for the sector. CALABARZON generated the third highest income of PHP1.0 billion or 9.6 percent.
Total expense incurred by the sector amounted to PHP10.0 billion in 2015. Personal services for wellness, except sports activities industry spent the highest among industries with PHP5.4 billion (53.8%). Repair of computers and communications equipment industry was second highest spender of PHP1.4 billion (14.2%). Other personal service activities, n.e.c. incurred the least expense of PHP70.8 million. Figure 4 shows the income generated and expense incurred by the sector by industry group.
Across regions, NCR was the top spender of PHP7.0 billion (70.1%), followed by Central Visayas and CALABARZON with PHP1.4 billion (14.2%) and PHP1.0 billion (9.8%), respectively.
Income per expense ratio stands at 1.06
The income generated per peso expense for Other Service Activities sector stood at 1.06. This means that for every peso spent in the operation of the business in the sector, a PHP1.06 income was generated.
Three industries of the sector recorded the highest returns of 1.07 income per expense and these were:
- Repair of personal and household goods
- Personal services for wellness, except sports activities industries
- Other personal service activities, n.e.c.
Value added amounts to about PHP4.0 billion
Value added for Other Service Activities sector was estimated at about PHP4.0 billion.
Personal services for wellness, except sports activities posted the highest value added amounting to PHP2.2 billion or 55.2 percent of the total value added. On the other hand, other personal service activities, n.e.c. industry reported the lowest with PHP34.5 million.
Across regions, NCR recorded the highest value added of PHP2.7 billion (68.6%). This was followed by Central Visayas with PHP635.7 million (16.1%). CALABARZON completed the top three, amounting to PHP344.2 million (8.7%) 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 PHP249.1 thousand.
Employees of repair of computers and communications equipment were the most productive with a value worth PHP443.8 thousand. Second highest labor productive employees was recorded by funeral and related activities industry with a value of PHP368.4 thousand. Repair of personal and household goods were the least productive with HP155.6 thousand.
Region wise, workers in Central Visayas garnered the highest labor productivity of PHP391.9 thousand per employee, NCR ranked second with PHP255.7 thousand and Davao Region ranked third, with PHP245.7 thousand.
Gross addition to tangible fixed assets totals PHP173.9 million
The value of gross additions to tangible fixed assets is capital expenditure less sale of fixed assets. The sector acquired a total of PHP173.9 million worth of fixed assets in 2015.
Among industry groups, funeral and related activities industry acquired more than 36.0 percent or PHP64.0 million. This was followed by personal services for wellness, except sports activities with PHP54.5 million or 31.4 percent.
Across regions, establishments in NCR acquired 88.0 percent (PHP152.9 million) of the total addition to tangible fixed assets.
Repair of computers and communications equipment industry records the highest change in inventories
Change in inventories is defined as the value of ending less the beginning inventory. Other personal service activities, n.e.c. posted the highest change in inventory of PHP1.0 million.
Regionwise, Davao Region recorded the highest change in inventory of PHP7.6 million.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Other 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.
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
Xsj = value of the jthestablishment in the non-certainty employment stratum in TE of less than 20 in the Sth industry domain
j = 1,2,3,..., nsp establishments
Wspj = weight of the jth establishment in non-certainty employment stratum in TE of less than 20 in the 6th 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 the Sth industry domain
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 Other service activities sector for establishments with TE of 20 and over was 93.8 percent (213 out of 227 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 6 establishments responded online.
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.
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.
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.
Expense refers to cost incurred in as enterprise effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.
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.
Valued 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 inventory. 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.