2016 Annual Survey of Philippine Business and Industry (ASPBI) - Education Sector For Establishments with Total Employment of 20 and over: Preliminary Results

Reference Number: 

2018-275

Release Date: 

Wednesday, October 10, 2018

Secondary education leads the sector in terms of number of establishments

Preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that a total of 3,722 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in education activities.

Secondary/high school education garnered the highest number of establishments with a total of 1,570 (42.2%). Higher education followed with 1,294 establishments (34.8%). Pre-primary/pre-school education had the least number of establishments of 149 (4.0%).

Figure 1 displays the percentage distribution of establishments of the Education sector for establishments with TE of 20 and over by industry group in 2016.

Figure 1

At the regional level, National Capital Region (NCR) had the highest number of establishments which totaled to 841 (22.6%). CALABARZON followed with 702 establishments (18.8%) and Central Luzon with 464 establishments (12.5%). Autonomous Region in Muslim Mindanao (ARMM) with 47 (1.3%) establishments, recorded the least number.

Establishments providing higher education hire the highest number of workers

The sector hired a total of 276,542 workers in 2016. Of this, 273,224 or 98.8 percent were paid employees while the rest were working owners and unpaid workers.

Higher education registered the most number of workers with 162,675 or 58.8 percent of the total workers for the sector. Secondary/high school education came in second with 77,157 workers (27.9%). The least number of workers was recorded in pre-primary/pre-school education with 5,074 (1.8%). Figure 2 shows the distribution of employment of education sector for establishments with TE 20 and over by industry group in 2016.

Figure 2

Across regions, NCR hired the highest number of workers with 80,146 (29.0%), followed by CALABARZON with 42,454 workers (15.4%). Central Luzon ranked third with 28,151 workers (10.2%). ARMM, being the region with the least number of establishments, had the least number of workers of 2,994.

The sector recorded a national average of 74 workers per establishment. Higher education posted the highest average of 126 workers per establishment, surpassing the national average. This was followed by other education and educational support services with 61 workers per establishment. Secondary/high school education ranked third with only 49 workers per establishment.

Highest compensated employees in 2016 are higher education provider

Total compensation paid by private education sector amounted to PHP72.1 billion, translating to an average annual compensation of PHP263,831 per employee.

Across industry group, higher education paid the highest average annual compensation of PHP301.4 thousand per employee, followed by other education and educational support services with PHP226.8 thousand per employee. Primary/elementary education received the lowest average annual pay of PHP167.6 thousand per employee. Shown in Figure 3 are the average annual compensation of employees for education establishments with TE of 20 and over by industry group in 2016.

Figure 3

Among regions, NCR paid the largest amount of compensation equivalent to PHP31.0 billion, translating to an average annual compensation of PHP387.6 thousand per employee. Cordillera Administrative Region (CAR) and Negros Island Region ranked second and third with an average annual compensation of PHP255.0 thousand and PHP245.0 thousand per employee, respectively. ARMM paid the least average annual compensation of PHP155.8 thousand.

Higher education industry tops income and expense

Total income generated by the sector in 2016 reached PHP166.9 billion. Higher education earned the highest income amounting to PHP114.6 billion or 68.6 percent of the total income for the sector. Ranked second as to income generation was secondary/high school education with PHP32.8 billion or 19.7 percent. Pre-primary/pre-school education generated the lowest income of PHP2.1 billion or 1.3 percent of the total income.

As to geographic location, NCR recorded the highest income of PHP74.9 billion (44.9%), CALABARZON followed with PHP22.6 billion (13.5%). Central Visayas generated the third highest income of PHP13.9 billion (8.3%). The lowest income was generated by ARMM for PHP810.5 million or a 0.5 percent share to total.

Total expense incurred by the sector in 2016 amounted to PHP141.1 billion. Higher education, which was is the highest generating industry, also incurred the highest expense of PHP96.0 billion (68.1%). Similarly, pre-primary/pre-school education, which generated the least income, also had the lowest expense amounting to PHP1.9 billion (1.3%). Figure 4 displays the income generated and expense incurred by the sector for establishments with TE 20 and over by industry group in 2016.

Figure 4

At the regional level, NCR was the top spender at PHP61.9 billion (43.8%), Ranked second and third in terms of expense were CALABARZON with PHP19.6 billion (14.0%) and Central Visayas with PHP11.4 billion (8.1%), respectively. ARMM incurred the lowest expense of PHP744.5 million (0.5%).

Income per peso expense for the sector stands at 1.18.

The income generated per peso expense for the sector stood at 1.18. This means that an income of PHP1.18 was generated for every peso spent in the operation of the sector’s business. Establishments in the combined industry of other education and educational support services recorded the highest income per expense ratio of 1.20. In second place was higher education with an income per expense ratio of 1.19. Primary/elementary education registered the lowest income per peso expense ratio of 1.14.

Among regions, Western Visayas recorded the highest income per expense ratio of PHP1.26. Central Visayas, Caraga and NCR followed having an income per expense ratio of 1.22 and 1.21, respectively. Eastern Visayas posted the lowest income per expense ratio of 1.05.

Value added amounts to PHP113.3 billion; higher education records the highest

Value added for the sector was estimated at PHP113.3 billion. Higher education contributed the highest value added amounting to PHP78.4 billion or 69.2 percent of the total value added for the sector. On the other hand, pre-primary/pre-school education reported the lowest value added of PHP1.3 billion or 1.2 percent. Figure 5 shows the distribution of value added of education sector for establishments with TE of 20 and over by industry group in 2016.

Figure 5

Across regions, NCR had the highest value added recorded at PHP50.1 billion (44.2%), followed by CALABARZON with PHP15.1 billion (13.3%) and Central Visayas with PHP9.3 billion (8.2%). ARMM reported the least value added of PHP587.5 million (0.5%).

Higher education emerges as the most labor productive industry

Value added per worker, a measure of labor productivity, was valued at PHP409.8 thousand per worker in 2016. Higher education emerged as the most labor productive industry with labor productivity of PHP481.8 thousand per worker. On the other hand, Primary/elementary education was the least labor productive industry with value added per worker of PHP237.9 thousand.

Region-wise, NCR generated the highest labor productivity of PHP625.2 thousand per worker. This was followed by Central Visayas and CAR with labor productivity PHP390.5 thousand  and PHP370.0 thousand per worker, respectively. ARMM had the least labor productivity amounting to PHP196.2 thousand per worker.

Gross addition to tangible fixed assets sums up to PHP11.5 billion.

The sector acquired a total amount of PHP11.5 billion gross additions to tangible fixed assets in 2016. Higher education recorded the highest gross addition to tangible fixed assets among the industry groups with PHP7.8 billion or 68.2 percent of the total for the sector. Pre-primary/pre-school education recorded the least gross addition to tangible fixed assets worth PHP146.6 million.

Across regions, PHP4.5 billion (39.4%) gross addition to fixed assets was acquired by NCR. CALABARZON and Central Luzon had estimated shares of PHP1.8 billion (15.8%) and PHP1.0 billion or (8.7%), respectively to total gross addition to fixed assets.

Higher education industry records the highest change in inventories

In 2016, higher education had the highest change in inventories amounting to PHP23.9 million. This was followed by primary/elementary education with PHP5.0 million.

Among regions, CALABARZON posted the highest change in inventories amounting to PHP29.2 million. Other regions which reported a change in inventories of more than three million pesos were the following:

  • Cagayan Valley, PHP4.2 million
  • MIMAROPA, PHP4.1 million
  • Negros Island Region, PHP3.9 million
  • Central Visayas, PHP3.7 million

Total subsidies reach PHP2.5 billion; secondary/high school education receives the largest

Total subsidy received from the government in 2016 reached PHP2.5.billion. Secondary/high school education received the highest subsidy amounting to PHP1.4 billion (57.5%), followed by higher education with PHP743.5 million (29.8%) and other education and educational support services with PHP255.8 million (10.3%). The least amount of subsidy received was allocated to pre-primary/pre-school education amounting to PHP4.7 million (0.2%).

All regions received subsidies from the government in 2016. CALABARZON was granted the highest subsidy worth PHP458.0 million (18.4%), while Negros Island Region received the lowest subsidy amounting to PHP11.0 million (0.4%).


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for Education (except public education) 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, except for employment where in the reference period is 15 November 2016.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2016 ASPBI questionnaires in the provinces 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.

Legal Authority

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 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 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 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.

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. 01 Series of 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 total employment (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.

Sampling Design

The 2016 ASPBI uses a 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)

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 Formula for the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

Formula

 

where:

      s = denotes the non-certainty employment strata in TE of 20 to over       

      p = 1, 2,..., 18 regions (geographic domains)        

   Xspj = 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,..., nsp establishments                                                 

  Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region                                                                                                                                                                                      

Formula

   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)

       The estimate of the total of a characteristic Formulafor the certainty employment stratum in an industry domain in each region

Formula

where:

       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 certainty employment strata in TE of 20 and over for an industry domain within 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  Formulafor the industry domain in each region (geopraphic domain) was obtained by aggregating the estimates for all employment strata  (non-certainty and certainty) in the same industry domain,

 Formula

where dp denotes the industry domain in each region

National level estimate of the characteristics by industry domain were obtained by aggregating separately the estimates Formula 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

Formula

Thus, the adjusted weight (W'spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Formula

Where:

 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

Response rate for Education sector for establishments with TE of 20 and over was 92.6 percent (1,032 out of 1,116 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 49 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

Only the formal sector and private education establishments were covered in the survey.

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 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 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 Education 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.

Gross addition to tangible fixed assets  is equal to capital expenditures less sale of fixed assets, including land.

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.

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.
 

See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.

 

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