Architectural and engineering activities and related consultancy industry dominates the sector
Preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 840 establishments with total employment of 20 and over in the formal sector of the economy were engaged in Professional, scientific and technical activities sector.
Among industries, architectural and engineering activities and related technical consultancy industry had the highest number of establishments with 198 or 23.6 percent of the total. Advertising closely followed with 153 establishments at about 18.2 percent. Management consultancy activities ranked third with 121 establishments or 14.4 percent. Figure 1 shows the percentage distribution of establishment with total employment of 20 and over.
Among regions, the National Capital Region (NCR) had the most number of establishments with 709 establishments or 84.4 percent of the total. Central Visayas and CALABARZON placed far second and third with 34 establishments (4.0%) and 33 establishments (3.9%), respectively.
Architectural and engineering activities and related technical consultancy industry employs the highest number of workers
Employment in 2015 reached a total of 107,730 workers. Almost all workers (99.7%) were paid employees and the rest were working owners or unpaid workers.
Architectural and engineering activities and related technical consultancy had the most number of workers with 25.8 percent equivalent to 27,777 employees. Management consultancy activities followed with 19,297 employees (17.9%). Advertising ranked third with 14,813 employees or 13.8 percent. Figure 2 shows the distribution of employment of the sector for establishment with total employment of 20 and over.
Across regions, NCR was the top employer which generated jobs for 89,145 employees (82.7%). This was followed by CALABARZON and Central Visayas with 8,988 employees (8.3%) and 6,421 employees (6.0%), respectively.
Management consultancy activities workers are highest-paid employees in 2015
The sector paid a total compensation of PHP52.0 billion, equivalent to an average annual compensation of PHP484.3 thousand per paid employee in 2015.
Among the industries, activities of head offices paid a total compensation of PHP6.2 billion or an average annual compensation of PHP760.8 thousand per paid employee. Management consultancy activities followed closely with a total compensation of PHP14.1 billion or an average annual compensation of PHP731.6 thousand per paid employee. Research and experimental development on social sciences and humanities ranked third with total compensation of PHP286.8 million or an average annual compensation of PHP606.3 thousand per paid employee. Figure 3 displays the average annual compensation of the sector for establishments with total employment of 20 and over by industry group.
By region, Davao Region paid a total compensation of PHP494.0 thousand or an average annual compensation amounting to PHP588.1 thousand per paid employee. NCR placed second with total compensation of PHP44.9 billion or average annual compensation of PHP506.0 thousand and ranked third was Central Visayas with total compensation of PHP3.0 million or average annual compensation of PHP464.0 thousand.
Activities of head offices contribute the biggest share in income and expense
In 2015, gross income generated by the sector reached PHP226.7 billion. Activities of head offices had the biggest share with PHP73.2 billion or 32.3 percent of the total. Management consultancy activities ranked second with PHP59.4 billion (26.2%). Architectural and engineering activities and related technical consultancy ranked third with PHP34.1 billion (15.1%).
Among regions, NCR earned the highest income amounting to PHP192.8 billion (85.1%). CALABARZON and Central Visayas followed afar with PHP22.7 billion (10.0%) and PHP5.2 billion (2.3%), respectively.
Total expenses incurred amounted to PHP196.9 billion in 2015. Being the major contributor in income, activities of head offices had the largest proportion in expense with PHP87.3 billion (44.4%). This was followed by management consultancy activities and architectural and engineering activities and related technical consultancy with PHP33.8 billion (17.1%) and PHP26.2 billion (13.3%) respectively. Figure 4 shows the top industry groups in terms of income and expense.
By region, NCR incurred highest expense amounting to PHP172.7 billion (87.7%). CALABARZON and Central Visayas followed next with PHP15.8 billion (8.0%) and PHP4.7 billion (2.4%), respectively.
Income per peso expense at 1.15 in 2015
In 2015, the income per peso expense produced by the sector for establishments with total employment of 20 and over stood at 1.15.
Among industries, management consultancy activities recorded the highest income per peso expense at 1.76 and surpassed the national ratio of 1.15. Legal activities followed next with 1.43. Research and experimental development on natural sciences and engineering ranked third with 1.41 income per peso expense.
By region, Davao Region recorded the highest ratio of 2.82 followed by Northern Mindanao and Western Visayas at 1.49 and 1.47, respectively.
Value added amounts to PHP112.5 billion
Value added for the Professional, Scientific and Technical Activities sector with total employment of 20 and over was estimated at PHP112.5 billion in 2015.
The top three contributors to the total value added were the following:
- Management consultancy activities with PHP42.6 billion (37.8%);
- Architectural and engineering activities and related technical consultancy with PHP24.4 billion (21.7%); and
- Activities of head offices with PHP13.0 billion (11.6%).
Value added per total employment, a measure of labor productivity, was estimated at PHP1,044.2 thousand. Management consultancy activities led the sector with PHP2,205.1 thousand while photographic activities was the lowest with PHP375.1 thousand.
Figure 5 shows the value added per total employment for Professional, Scientific and Technical Activities sector.
Davao Region posted the highest value added per total employment among regions with a ratio of PHP2.0 million per worker. On the other hand, Cordillera Administrative Region (CAR) had the least with PHP141.7 thousand pesos.
Gross additions to fixed assets reach PHP4.0 billion
Gross additions to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP3.7 billion in 2015.
Activities of head offices acquired the biggest gross addition to fixed assets at PHP1.2 billion. This was followed by architectural and engineering activities and related technical consultancy with PHP645.9 million and third, management consultancy activities with PHP550.1 million.
Across regions, NCR recorded the highest gross addition amounting to PHP3.3 billion while Northern Mindanao had lowest gross addition amounting to PHP96.0 thousand. The rest of Mindanao had no gross additions to fixed assets recorded.
Total change in inventories amounts to PHP178.4 million
Total change in inventories (ending less beginning inventory) accounted to PHP178.4 million in 2015. Other professional, scientific and technical activities, n.e.c. had the highest change in inventory with PHP137.7 million. Activities of head offices followed with PHP59.0 million.
Among regions, rest of Luzon had the highest change in inventories at PHP134.9 million while CAR had the lowest change in inventories amounting to PHP41.0 thousand.
Total subsidies received from the government amounts to PHP8.3 billion
Total subsidies received from the government amounts to PHP143.6 million
Only one industry group received subsidies from the government:
- management consultancy activities, PHP143.6 million
By region, only NCR received subsidies from the government amounting to PHP143.6 million.
This Special Release presents the preliminary results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for the Professional, scientific and technical 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 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 by industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.(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
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 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 Professional, scientific and technical activities sector for establishments with TE of 20 and over was 88.6 percent (381 out of 430 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 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 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.
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 professional, scientific and technical 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.