2016 Annual Survey of Philippine Business and Industry (ASPBI) - Economy Wide for Establishment with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2018-354

Release Date: 

Friday, December 21, 2018

Wholesale and retail trade; repair of motor vehicles and motorcycles sector leads in terms of number of establishments

Based from the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI), the total number of establishments with Total Employment (TE) of 20 and over in the formal sector of the economy was recorded at 35,835. Of the 18 sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles reported the highest with 8,589 or 24.0 percent of the total. Manufacturing ranked second with 6,208 or 17.3 percent of the total number of establishments in 2016. This was followed by Accommodation and Food Service Activities, and Education with 5,971 (16.7%) and 3,722 (10.4%), respectively. These top four sectors comprised 68.3 percent of the total establishments in 2016. On the other hand, Mining and Quarrying with 130 establishments, numbered the least with 0.4 percent share to the total count.

Figure 1 shows the distribution of establishments with TE of 20 and over by sector.

Across regions, 40.2 percent of establishments in 2016 were located in the National Capital Region (NCR) with a total of 14,414 establishments. CALABARZON with 5,116 establishments or 14.3 percent share ranked second. Central Luzon with 3,311 establishments (9.2%) and Central Visayas with 2,842 establishments (7.9%) placed third and fourth, respectively. Autonomous Region in Muslim Mindanao (ARMM) recorded the least count numbering to only 103 establishments or 0.3 percent share to total.

Figure 2 shows the distribution of establishments with TE of 20 and over by region.

 

Manufacturing reports the highest number of workers

Manufacturing recorded the highest number of workers at 1,062,531, accounting for 22.7 percent of the total employment. Ranking second was Administrative and Support Service Activities with 1,020,449 workers or 21.8 percent share to total employment. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles ranked third with 501,695 workers or 10.7 percent share to total. Other Service Activities recorded the least share in number of workers with 14,425 workers or a mere 0.3 percent of the total employment.

Figure 3 shows the total employment for establishments with TE of 20 and over by sector.

Of the 18 regions nationwide, NCR, where most of the establishments are located, recorded the highest employment with 2,160,712 comprising 46.2 percent of the total. CALABARZON (756,709 workers or 16.2%) and Central Visayas (423,405 workers or 9.0%) settled for second and third posts, respectively. The least share was ARMM with only 9,318 workers or 0.2 percent.

 

Total Compensation in 2016 reaches PHP1.4 trillion

Total compensation paid to employees comprising of payment for gross salaries and wages of employees and other benefits paid by the establishment amounted to PHP1.4 trillion.

Manufacturing contributed more than one-fifth (22.3%) of the total compensation paid in 2016 at PHP319.1 billion in total. This was followed by Administrative and Support Service Activities and Financial and Insurance Activities paying PHP253.6 billion (17.7%) and PHP204.1 billion (14.3%) worth of compensation, respectively. Other Service Activities with PHP2.7 billion or 0.2 percent paid the least compensation to its employees.

By region, 60.0 percent of the total compensation in 2016 was contributed by NCR with PHP857.6 billion. CALABARZON was a far second with PHP211.1 billion or 14.8 percent of the total, followed by Central Visayas (6.7%), Central Luzon (5.4%) and Davao Region (2.6%) that completed the top five highest paying regions. ARMM paid the least compensation with PHP1.1 billion or 0.1 percent.

Average monthly compensation per employee in 2016 was estimated at PHP25,544. Employees in Electricity, Gas, Steam and Air Conditioning Supply sector received the highest average monthly pay of PHP62,732 in 2016, followed by employees in Information and Communication and Financial and Insurance Activities with average monthly compensation of PHP54,665 and PHP52,161, respectively.

Figure 4 shows the average monthly compensation per employee for establishments with TE of 20 and over by sector.

By region, employees in NCR received the highest average monthly pay of PHP33,122. Employees in CALABARZON, were the second highest paid receiving an average monthly compensation of PHP23,344. The third highest earner were employees in Cordillera Administrative Region with PHP23,212 average monthly compensation.

 

Manufacturing sector; NCR emerges as top income earner in 2016

Total income earned by establishments in 2016 amounted to PHP13.5 trillion.

Manufacturing, the top income generator, accounted for 33.1 percent of total income at PHP4.5 trillion. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles ranked second, earning PHP2.9 trillion or 21.2 percent share to total, followed by Financial and Insurance Activities with PHP1.5 trillion (10.8%). Meanwhile, sectors that contributed less than one percent share each to total income in 2016 were: Mining and Quarrying, PHP112.5 billion or 0.8 percent; Water Supply, Sewerage, Waste Management and Remediation Activities, PHP90.9 billion or 0.7 percent; and Other Service Activities, PHP13.6 billion or 0.1 percent.

Region-wise, NCR produced the highest income of PHP6.9 trillion accounted for 50.8 percent of the total income. CALABARZON with an income of PHP2.6 trillion contributed 19.1 percent to total, followed by Central Luzon with PHP1.2 trillion (8.8%), Central Visayas with PHP0.8 trillion (5.6%) and Davao Region with PHP0.4 trillion (2.7%). On the other hand, ARMM with PHP6.8 billion (0.1%) recorded the least share to total income.

 

Manufacturing sector; NCR incurs highest expense in 2016

Total expense incurred in business operations of establishments with TE of 20 and over amounted to PHP11.4 trillion in 2016.

Manufacturing, the highest spender, incurred PHP3.8 trillion or 33.1 percent of the total expense. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles ranked second with PHP2.7 trillion or 24.0 percent of the total, distantly followed by Financial and Insurance Activities spending PHP1.0 trillion (8.7%). Other Service Activities spent the least with PHP12.1 billion or 0.1 percent of the total.

Among regions, NCR spent the most amounting to PHP5.7 trillion or 50.2 percent of the total. This was followed by CALABARZON and Central Luzon spending PHP2.1 trillion (18.8%) and PHP1.0 trillion (9.2%), respectively. ARMM expended the least at PHP6.8 billion (0.1%).

Figure 5 shows the total income and expense for establishments with TE of 20 and over by sector.

 

Value Added amounts to PHP4.5 trillion

Value added generated by establishments with TE of 20 and over in 2016 stood at PHP4.5 trillion.

Manufacturing generated PHP1.4 trillion or 30.4 percent share to total, the highest among the sectors. Financial and Insurance Activities ranked second, generating PHP0.9 trillion or 19.1 percent of the total value added. This was followed by Administrative and Support Service Activities with PHP0.3 trillion (7.3%). On the other hand, Agriculture, Forestry and Fishing (0.9%); Water Supply; Sewerage, Waste Management and Remediation Activities (0.7%); and Other Service Activities (0.1%) contributed less than one percent share to total value added.

At the regional level, NCR generated PHP2.6 trillion or more than half (57.0%) of the total value added, followed by CALABARZON with PHP0.8 trillion (17.2%) worth of value added. Central Luzon which contributed PHP0.3 trillion or 6.4 percent share to total value added placed third.

 

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

The ratio of value added to employment, a measure of simple labor productivity, was estimated at PHP964,352 in 2016.

Electricity, Gas, Steam and Air Conditioning Supply reported to be the most productive sector in 2016, with value added per worker of almost PHP4.8 million. Real Estate Activities was the second most productive sector, generating PHP3.6 million value added per worker, followed by Financial and Insurance Activities with value added per worker of PHP2.6 million.

Other sectors with a million mark labor productivity were:

• Information and Communication, PHP1.7 million

• Mining and Quarrying, PHP1.6 million

• Arts, Entertainment and Recreation, PHP1.5 million

• Professional, Scientific and Technical Activities, PHP1.4 million

• Manufacturing, PHP1.3 million

• Water Supply; Sewerage, Waste Management and Remediation Activities, PHP1.1 million

• Transportation and Storage, PHP1.1 million

At the regional level, Cordillera Administrative Region posted the highest labor productivity at PHP2.1 million. This was followed by NCR and CALABARZON with an estimated labor productivity of PHP1.2 million and PHP1.0 million, respectively.

 

Subsidies received from the government reach PHP38.8 billion

Total subsidies received by establishments with TE of 20 and over amounted to PHP38.8 billion in 2016.

Transportation and Storage received the biggest amount of subsidy in 2016 valued at PHP9.5 billion or 24.5 percent of the total. Administrative and Support Service Activities received the next highest amount of subsidy at PHP9.2 billion (23.7%), while Financial and Insurance Activities received PHP6.7 billion (17.4%) came in third.

Other sectors that received more than a billion worth of subsidies from the government were:

• Electricity, Gas, Steam and Air Conditioning Supply, PHP5.0 billion

• Education, PHP2.5 billion

• Agriculture, Forestry and Fishing, PHP2.0 billion

• Manufacturing, PHP1.6 billion

At the regional level, NCR received the highest amount of subsidy in 2016 at PHP29.0 billion or  74.6 percent of the total. Central Visayas placed second with PHP1.3 billion (3.3%). Ranking third was CALABARZON with PHP1.2 billion (3.0%).

Other regions that reached the billion mark subsidies from the government were Eastern Visayas and Davao Region, amounting to PHP1.0 billion each.

 

E–commerce sales amounts to PHP31.8 billion

Total sales from e-commerce transactions in 2016 was estimated at PHP31.8 billion.

Among the 18 sectors, Transportation and Storage recorded the largest sales through e-commerce transactions amounting to PHP19.2 billion or 60.5 percent of the total e-commerce sales. Accommodation and Food Service Activities followed with PHP5.6 billion sales from e-commerce or 17.5 percent share to total. Arts, Entertainment and Recreation came in third at PHP2.4 billion or  7.6 percent share to total e-commerce transactions in 2016.

Other sectors with sales through e-commerce transactions in 2016 were:

• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, PHP2.0 billion

• Manufacturing, PHP1.4 billion

• Administrative and Support Service Activities, PHP0.6 billion

• Information and Communication, PHP0.5 billion

Among regions, NCR was the only region that recorded a billion mark in e-commerce sales with PHP28.0 billion or 87.8 percent share to total. Conversely, no sales from e-commerce transactions were reported for Northern Mindanao, CARAGA and ARMM.

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
(Director II)
Officer-in-charge
Sectoral Statistics Office

 


TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for the ECONOMY WIDE (18 sectors) for establishments with total employment (TE) of 20 and over.

The 2016 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 the year 2016 as the reference period of data, except for employment which is as of November 15, 2016.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the province, as well as in 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) and at the regional level.

 

Legal Authority

The conduct of 2016 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 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)

However, three (3) sectors of the 2009 PSIC are not covered. These are:

• Public Administration and Defense; Compulsory Social Security (O)
• Activities of Household as Employee. Undifferentiated Goods and Services Producing Activities of Household for Own Use (T)
• Activities of Extraterritorial Organizational Bodies (U)

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 2016 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 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. 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 in the United Nations International Recommendations on Industrial Statistics as an economic unit, under a single ownership or control, i.e. under a single legal entity, which engages in one or predominantly one kind of economic activity at a single fixed physical location.

 

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 TE as of a specific date.

Geographic Classification refers to the classification of establishments by geographic area using the Philippine Standard Geographic Code (PSGC) classification. The PSGC as of 31 December 2016 was used for the 2016 ASPBI.

 

Methodology

Sampling Design

The 2016 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 99 for 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…17 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

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

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 establishments 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 2016 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 establishments with TE of 20 and over was 89.4 percent (17,812 out of 19,922 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 758 responded online or 4.2 percent.

Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources.  However, reports of establishments in the certainty stratum, which were found to be duplicates and out of business in 2016, were not imputed. The table below shows the response rate by sector and the number of establishments which responded on-line.

 

TABLE 1  2016 ASPBI Response Rates for Establishments with TE of 20 and over
2009 PSIC Number of Samples Number of Responding Establishment Response Rate (%) Number of Responding Establishment On-line
Philippines 19,922 17,812 89.4 758
A - Agriculture, Forestry and Fishing    705 665 94.3 18
B - Mining and Quarrying 156 122 78.2 0
C - Manufacturing 4,857 4,310 88.7 177
D - Electricity, Gas, Steam and Air-Conditioning Supply 226 223 98.7 24
E Water Supply; Sewerage, Waste Management and Remediation Activities 350 319 91.1 19
F Construction 743 644 86.7 27
G Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles 4,437 3,898 87.9 190
H Transportation and Storage 798 726 91.0 23
I Accommodation and Food Service Activities 1,061 917 86.4 26
J Information and Communication 931 875 94.0 24
K Financial and Insurance Activities 990 806 81.4 54
L Real Estates Activities 281 236 84.0 13
M Professional, Scientific and Technical Activities 451 405 89.8 4
N Administrative and Support Service Activities 1,754 1,638 93.4 49
P Education 1,116 1,032 92.5 49
Q Human Health and Social Work Activities 626 609 97.3 30
R Arts, Entertainment and Recreation 232 206 88.8 5
S Other Service Activities 208 181 87.0 26

 

Limitation of Data

The 2016 ASPBI covered only the formal sector of the economy.

 

Concepts and Definitions of Terms

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, 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 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 (for industrial sectors A, B, D, E and F) 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 and 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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