Beauty parlor activities industry accounts for majority of the establishments
The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that there were 10,065 establishments in the formal sector of the economy that were engaged in Other Service Activities.
Among industries, beauty parlors registered the highest number of establishments at 3,092. This was followed by washing and dry cleaning of textile and fur products, and funeral and related activities with 1,506 and 1,472 establishments, respectively. The percentage distribution of Other Service Activities sector by industry sub-class is shown in Figure 1.
Beauty parlors employ the most number of workers
The sector hired a total of 77,581 workers in 2015. Out of the total employment, 70,312 or 90.6 percent were paid employees while the remaining 7,269 or 9.4 percent were working owners and unpaid workers.
Beauty parlors employed most of the workers at 28,461 or 36.7 percent of the total employment of the sector. This was followed by spa activities with 11,268 or 14.5 percent. Funeral and related activities industry came in next with 10,426 or 13.4 percent share. Figure 2 shows the distribution of employment of the sector by industry sub-class.
The sector recorded a national average of 8 workers per establishment. Seven of the 21 industries of the sector surpassed the national average of workers of which repair of computer and peripheral equipment posted the highest average of 19.
Repair of computers and peripheral equipment industry pays the highest average annual compensation
Total compensation paid by the sector amounted to PHP7.6 billion in 2015, translating to an average annual compensation of PHP107,847 per employee.
At the industry level, beauty parlor activities spent the highest compensation of PHP2.4 billion. Spa activities disbursed the second highest compensation of PHP895 million and beauty treatment and personal grooming activities came in third with PHP836.6 million.
Repair of computers and peripheral equipment industry paid the highest average annual compensation of PHP279.1 thousand per employee. On the other hand, barber shop activities disbursed the lowest with PHP66.2 thousand.
Figure 3 shows the average annual compensation per employee of the top five industries of the sector by industry sub-class in 2015.
Beauty treatment and personal grooming activity emerges as top earner and spender
Income generated by all establishments by the sector reached PHP41.6 billion in 2015. Beauty treatment and personal grooming activities industry earned the highest income of PHP8.0 billion or 19.2 percent of the total income for the sector. Next biggest income generating industry was beauty parlor activities with PHP6.9 billion or 16.6 percent share. Funeral and related activities industry generated the third highest income of PHP5.7 billion or 13.8 percent.
Total expense incurred by the sector during the reference year amounted to PHP37.8 billion. Beauty treatment and personal grooming activities industry being the highest earner was also the highest spender with PHP7.7 billion (20.2%). Likewise, beauty parlor activities and funeral and related activities followed the same trend with income, with corresponding expense of PHP6.2 billion (16.5%) and PHP5.1 billion (13.5%), respectively. Figure 4 shows the income generated and expense incurred of the top five industries of the sector by industry sub-class in 2015.
Slendering and body building activity records the highest returns
The income generated per peso expense for the sector stood at 1.10. This means that for every peso spent in the operation of the business in the sector, a PHP1.10 income was generated.
Across industries, slandering and body building activities recorded the highest returns with 1.17. Other industries of the sector that recorded ratio above the average income per expense ratio were as follows:
- Repair of other furniture and fixtures, n.e.c, spa activities, steam and bath activities, washing and dry cleaning of textile and fur products, 1.15
- Funeral and related activities, 1.13
- Other personal services for wellness activities, n.e.c., and miscellaneous service activities, n.e.c., 1.12
- Beauty parlor activities, 1.11
Top three industries contribute more than half of the total value added
In 2015, value added generated by all establishments of the sector was estimated at PHP14.4 billion.
Industry wise, the combined share of the top three industries accounted for more than half (52.8%) of the total value added of the sector. These were the following: beauty parlor activities with PHP3.4 billion (23.4%); spa activities with PHP2.3 billion or (15.8%); funeral and related activities with PHP2.0 billion (13.6%).
Labor productivity stands at PHP185,475 per worker
Labor productivity defined as value added per worker, was valued at PHP185.5 thousand in 2015.
Among industry sub-class, beauty treatment and personal grooming activities generated the highest value of labor productivity of PHP447.4 thousand per worker. On the other hand, repair of woods furniture recorded the lowest labor productivity of PHP47.0 per worker; Other leading industries in terms of labor productivity and exceeds the national average were the following:
- Repair of computers and peripheral equipment, PHP433.1 thousand per worker
- Washing and dry cleaning of textile and fur products industry, PHP299.5 thousand per worker
- Slendering and body building activities, PHP258.7 thousand per worker
- Repair of consumer electronics industry, PHP249.2 thousand per worker
Labor productivity of the top five industries of the sector in 2015 is shown in Figure 5.
Gross addition to tangible fixed assets amounts to PHP391.4 million in 2015
Gross additions to tangible fixed assets is defined as capital expenditure less sale of fixed assets. The sector acquired a total of PHP391.4 million worth of tangible fixed assets in 2015.
Nearly half or 46.0 percent of the total gross additions to tangible fixed assets was acquired by beauty parlor activities with PHP181.3 million. This was followed by funeral and related activities and washing and dry cleaning of textile and fur products industries with PHP64.0 million and PHP56.9 million, respectively.
Repair and servicing of household appliances industry records the highest change in inventories
Change in inventories is defined as the value of ending less the beginning inventory. Across industries, repair and servicing of household appliances posted the highest change in inventory of PHP239.6 million. Other industries that recorded more than four million positive change in inventories were as follows:
- Washing and dry cleaning of textile and fur products, PHP12.8 million
- Repair of communications equipment, PHP4.8 million
- Spa activities, PHP4.8 million
This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all Other Service Activities establishments (Sector S).
The 2015 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey 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 2015 Survey of Information and Communication Technology (SICT) was undertaken as a rider in 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 sub-class or 5-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 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 5-digit PSIC serving as industry strata and employment size as the second stratification variable.
For Establishments with TE of Less Than 20
a. 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
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
b. Certainty Stratum
The total of a characteristic for the certainty employment stratum in the Cth industry domain was
c = denotes the certainty employment strata in TE of less than 20 in the cth industry
xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
j = 1,2,3,..., mc establishments
mc = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain
c. Total Estimate for TE of Less Than 20
For all sections except B and C, national level estimates of the total of a characteristicfor the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes 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) 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 with TE of 20 to 49 and TE 50 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 with TE of 20 to 49 and TE 50 to 99 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 (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 all Other Service Activities sector was 99.5 percent (793 out of 797 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 31 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 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.
Value added is gross output less intermediate input. Gross output for Other Service Activities sector is the sum of the 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 purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.
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.
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.