Activities of labor recruitment and provision of personnel overseas industry leads the sector in terms of number of establishments
The 2016 Annual Survey of Philippine Business and Industry (ASPBI) final results for the formal sector of the economy recorded a total of 7,077 establishments engaged in administrative and support service activities.
Among industries, labor recruitment and provision of personnel overseas recorded the highest number of establishments with 1,311 or 18.5 percent of the total for the sector. This was followed by labor recruitment and provision of personnel, local with 1,025 establishments (14.5%). Establishments engaged in travel agency activities ranked third with 896 (12.7%) establishments.
Figure 1 shows the percentage distribution of all establishments for the sector by industry sub-class in 2016.
Majority of workers come from customer relationship management industry
In 2016, the sector provided employment to 1,053,054 workers, of which 1,051,268 or 99.8 percent of the total were paid employees and the rest were working owners or unpaid workers.
Across industry sub-classes, customer relationship management activities posted the highest number of workers with 420,763 workers or 40.0 percent of the total employment for the sector. Labor recruitment and provision of personnel, local followed with 150,419 workers (14.3%). Third in rank was private security activities with 116,059 workers (11.0%).
Figure 2 shows the distribution of employment for all establishments of the sector by industry sub-class in 2016.
Employees of finance and accounting activities industry receive the highest average annual compensation
Total compensation paid by the sector to its employees amounted to PHP260.5 billion, translating to an average annual compensation of PHP247.8 thousand per paid employee.
Among industries, customer relationship management activities paid the highest compensation amounting to PHP145.6 billion (55.9%). This was followed by sales and marketing (including telemarketing) activities and labor recruitment and provision of personnel, local with PHP29.1 billion (11.2%) and PHP20.8 billion (8.0%), respectively.
Employees of finance and accounting activities industry received the highest average annual compensation amounting to PHP850.8 thousand per paid employee while employees of renting of furniture earned the lowest with PHP36.9 thousand per paid employee.
Figure 3 shows the average annual compensation of paid employees of the top five industries for all establishments of the sector by industry sub-class in 2016.
Customer relationship management activities industry generates the highest income and expense
The total income generated by the sector for all establishments in 2016 was estimated at PHP490.4 billion.
The highest share in total income for the sector was recorded by customer relationship management activities with PHP265.7 billion or 54.2 percent. Other industries with income of more than PHP15.0 billion were as follows:
- Sales and marketing (including telemarketing) activities, PHP57.9 billion
- Labor recruitment and provision of personnel, local, PHP37.6 billion
- Labor recruitment and provision of personnel, overseas, PHP19.1 billion
- Private security activities, PHP 16.8 billion
- Temporary labor recruitment and provision of personnel, local, PHP15.6 billion
On the other hand, sector’s total expense summed up to PHP421.8 billion. Customer relationship management activities, which led in terms of income generation, also topped in terms of total expense incurred with value amounting to PHP225.4 billion (53.4%).
Figure 4 illustrates the income and expense of the top five industries for all establishments of the sector by industry sub-class in 2016.
Income-expense ratio holds at 1.16
In 2016, the sector generated an income per peso expense ratio of 1.16. This means that for every peso spent, a corresponding income of PHP1.16 was generated.
Among industries, activities of booking offices posted the highest income per expense ratio of 1.57. This was followed by renting and leasing of other machinery, equipment and tangible goods, n.e.c. with an income per peso expense ratio of 1.43. Ranked third was casting agencies activities with an income per expense ratio of 1.39.
Value added of the sector reaches PHP349.8 billion
The estimated value added for the sector in 2016 was PHP349.8 billion. Among industries, customer relationship management activities recorded the highest value added with PHP187.2 billion or 53.5 percent of the total. This was followed by sales and marketing (including telemarketing) activities with PHP39.9 billion (11.4%) and labor recruitment and provision of personnel, local with PHP28.7 billion (8.2%).
Labor productivity registers at PHP332.2 thousand per worker
Labor productivity (ratio of value added per employment) for the sector was estimated at PHP332.2 thousand per worker.
By industry sub-class, renting and leasing of motor vehicles posted the highest labor productivity of PHP3.0 million per worker while security outsourcing activities reported the lowest with PHP42.9 thousand per worker.
Figure 5 shows the labor productivity of the top five industries for all establishments of the sector by industry sub-class in 2016.
Gross additions to tangible fixed assets of the sector stands at PHP17.0 billion
Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) for all establishments of the sector was valued at PHP17.0 billion.
Among industries, customer relationship management activities and sales and marketing (including telemarketing) activities were the main contributors to total gross additions to tangible fixed assets worth PHP10.2 billion (59.8%) and PHP2.4 billion (13.9%), respectively.
Total change in inventory records PHP9.6 million
Total change in inventories (ending less beginning inventory) for the sector was estimated at PHP9.6 million. Renting of construction and civil engineering machinery and equipment had the highest change in inventories with PHP63.9 million. Renting of wearing apparel followed with PHP22.2 million. Ranked third was labor recruitment and provision of personnel, local with total change in inventories of PHP16.6 million.
Total subsidies received from the government amounts to PHP9.2 billion
Total subsidies provided to the sector by the government reached PHP9.2 billion. This was granted to customer relationship management activities (PHP 9.0 billion or 98.4%) and sales and marketing (including telemarketing) activities (PHP145.6 million or 1.6%).
Sales from e-commerce totals to PHP603.6 million
Sales from e-commerce transactions amounted to PHP603.6 million or 0.12 percent of the total income for the sector in 2016. The following industries contributed to the total sales from e-commerce:
- Sales and marketing (including telemarketing) activities, PHP406.8 million (67.4%)
- Travel agency activities, PHP118.9 million (19.7%)
- Medical transcription activities, PHP47.9 million (7.9%)
- Customer relationship management activities, PHP29.9 million (5.0%)
- Other call centers activities (voice), n.e.c., PHP140.0 thousand (0.02%)
This Special Release presents the final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for all Administrative and Support Service Activities establishments (sector N).
The 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 2016.
The survey was conducted nationwide in 2017 with 2016 as the reference period, except for employment data which is 15 November 2016.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC) at the national level.
The conduct of the 2016 ASPBI is authorized under Republic Act 10625, known as the Philippine Statistical Act of 2013, which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.
Scope and Coverage
The 2016 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 2016 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 PSIC.
Frame of Establishments
The frame for the 2016 ASPBI was extracted from the 2016 List of Establishments (LE). The estimated number of establishments in operation in the country in 2016 totaled to 902,213. About 294,494 establishments (32.6%) of the total establishments belong to the formal sector of which 255,403 (86.7%) comprised the establishment frame of the survey. This frame was used to draw the sample establishments for the survey.
Unit of Enumeration
The unit of enumeration for the 2016 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 economic activity at a single fixed location.
Taxonomy 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 PSA Resolution No. 1 Series 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.
Size of an establishment is determined by its TE as of specific date. 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 31 December 2016 was used for the 2016 ASPBI.
The 2016 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable. The selection of sample establishments is done independently by stratum using systematic sampling.
Estimation Procedure 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 is
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in the 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 in TE of less than 20 in sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in 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
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 characteristic for the industry domain was obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain. That is,
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)
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 an industry domain in each region.
s = denotes the non-certainty employment strata in TE of 20 and over
p = 1, 2,..., 18 regions (geographic domains)
Xspj = value of the jthestablishment in the non-certainty employment strata with TE of 20 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 with 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 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 for an industry domain in each region
b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries except J61902, Business Process Management (BPM) industries, Government Owned and Controlled Corporations (GOCCs) 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 jth establishment in the 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) is obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domains and p refers to region
National level estimates of 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, 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 sample establishments under Administrative and Support Service Activities sector was 93.3 percent (2,144 out of 2,299 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 64 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 2016.
Limitation of Data
The survey covers only the formal sector of the economy.
Concepts and Definitions of Terms
Establishment is an economic unit under a single ownership and 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 or for the establishment as of 15 November 2016.
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 is 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 is 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 is 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 Administrative and Support 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; 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 are 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.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.