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

Reference Number: 

2018-210

Release Date: 

Tuesday, August 7, 2018

Personal services for wellness, except sport activities industry leads in terms of number of establishments

Based on the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, there were 417 establishments with total employment (TE) of 20 and over in the formal sector of the economy that were engaged in Other Service Activities.

Among industries, personal services for wellness, except sports activities recorded the highest number of establishments at 296 (71.0%). This was followed by repair of personal and household goods and funeral and related activities with 45 establishments (10.8%) and 33 establishments (7.9%), respectively. The percentage distribution of Other Service Activities establishments by industry group is shown in Figure 1.

At the regional level, National Capital Region (NCR) recorded the highest number of establishments comprising 267 establishments or more than half (64.0%) of the total number of establishments. Central Visayas and CALABARZON followed with 46 establishments (11.0%) and 37 establishments (8.9%), respectively.

Personal services for wellness, except sports activities industry generates the bulk of workers

Other Service Activities sector generated a total employment of 14,425 workers in 2016. Out of this number, 14,074 or 97.6 percent were paid employees while the rest were working owners and unpaid workers.

Personal services for wellness, except sports activities employed 8,497 workers (58.9%) or more than half of the total employment for the sector. Laundry services followed with 1,936 workers (13.4%). Other personal service activities, n.e.c. hired the least with 160 workers (1.1%). Figure 2 shows the distribution of employment of the sector for establishments with TE of 20 and over by industry group in 2016.

The top three regions with the most number of establishments in 2016 were also the top regions with the highest number of workers of more than 1,000 each and these were as follows:

  • NCR, 9,149 workers (63.4%)
  • Central Visayas, 1,826 workers (12.7%)
  • CALABARZON, 1,650 workers (11.4%)

The sector recorded a national average of 35 workers per establishment. Laundry services posted the largest average of 97 workers per establishment. Funeral and related activities recorded the least with an average of 25 workers per establishment.

Repair of computers and communications equipment industry pays the highest average annual compensation

Total compensation paid by the sector amounted to PHP2.7 billion, translating to an average annual compensation of PHP188.7 thousand per employee.

Among industries, personal services for wellness, except sports activities incurred the highest compensation of PHP1.4 billion, comprising more than half (52.1%) of the total compensation for the sector. Repair of computers and communications equipment and laundry services followed far second and third posts with PHP504.5 million (19.0%) and PHP345.3 million (13.0%), respectively.

Repair of computer and communications equipment paid the highest average annual compensation of PHP338.2 thousand per employee. On the other hand, other personal service activities, n.e.c. disbursed the lowest average annual compensation of PHP160.1 thousand per employee. Figure 3 shows the average annual compensation of employees for establishments with TE of 20 and over by industry group in 2016.

Among regions, Central Visayas paid the highest average annual compensation of PHP260,808 per employee. NCR and Zamboanga Peninsula followed with an average annual compensation per employee of PHP199,719 and PHP172,990, respectively.

Personal services for wellness, except sports activities industry emerges as top earner and spender

Income generated by the sector for establishments with TE of 20 and over reached PHP13.6 billion in 2016.

Personal services for wellness, except sports activities contributed the highest income of PHP7.9 billion or 58.5 percent of the total income for the sector. Next biggest income generating industry was repair of computers and communications equipment with PHP1.7 billion or 12.4 percent. Other personal service activities, n.e.c generated the lowest income of PHP62.2 million or 0.5 percent.

Region-wise, NCR generated the highest income of PHP10.5 billion (77.3%). This was followed by Central Visayas with PHP1.6 billion (11.5%). CALABARZON generated the third highest income of PHP864.6 million (6.4%).

Total expense incurred by the sector amounted to PHP12.1 billion in 2016. Among industries, personal services for wellness, except sports activities spent the highest with PHP7.0 billion (58.0%). Repair of computers and communications equipment was second highest spender amounting to PHP1.6 billion (12.9%). Other personal service activities, n.e.c. incurred the least expense of PHP52.2 million (0.4%). Figure 4 shows the income generated and expense incurred by the sector for establishments with TE of 20 and over by industry group.

Region-wise, NCR was the top spender amounting to PHP9.4 billion (77.2%). This was followed by Central Visayas and CALABARZON with PHP1.4 billion (11.8%) and PHP781.7 million (6.5%), respectively.

Income per expense ratio stands at 1.12

The income generated per peso expense for Other Service Activities sector stood at 1.12. This means that for every peso spent in its business operations, a corresponding income of PHP1.12 was generated.

The following industries of the sector surpassed the income per expense ratio average at the national level:

  • Other personal service activities, n.e.c, 1.19
  • Laundry services, 1.16
  • Personal services for wellness, except sports activities industries, 1.13

Personal services for wellness, except sports activities generates the highest value added

Value added for the Other Service Activities sector was estimated at about PHP4.9 billion.

Personal services for wellness, except sports activities posted the highest value added amounting to PHP2.8 billion or 56.9 percent of the total value added for the sector. On the other hand, other personal service activities, n.e.c. reported the lowest value added of PHP37.3 million.

Across regions, NCR recorded the highest value added of PHP3.6 billion (72.2%). This was followed by Central Visayas with PHP684.6 million (13.8%). CALABARZON completed the top three leading regions in terms of value added, with an amount of PHP377.5 million (7.6%).

Repair of computers and communications equipment industry tops labor productivity

Value added per worker, a measure of labor productivity, was valued at PHP343.1 thousand per worker.

In 2016, repair of computers and communications equipment emerged as the most productive industry with value added per worker of PHP492.2 thousand. Second highest labor productive industry was funeral and related activities which recorded an amount of PHP349.4 thousand per worker. Other personal services, n.e.c. were the least productive with PHP232.9 thousand per worker. Figure 5 shows the labor productivity for the sector for establishments with TE of 20 and over by industry group in 2016.

Region-wise, NCR garnered the highest labor productivity of PHP390.3 thousand per worker. Central Visayas ranked second with PHP375.0 thousand per worker and Western Visayas came third with PHP288.1 thousand per worker.

Gross additions to tangible fixed assets totals PHP520.6 million

The value of gross additions to tangible fixed assets (capital expenditure less sale of fixed assets) acquired by the sector totalled PHP520.6 million in 2016.

Among industry groups, personal services for wellness, except sports activities acquired PHP417.7 million gross additions to fixed assets. This was followed by laundry services and repair of computers and communications equipment with PHP47.2 million (9.1%) and PHP29.5 million (5.7%) gross additions to fixed assets, respectively.

Across regions, establishments in NCR acquired PHP444.1 million or more than 80.0 percent of the total gross additions to fixed assets in 2016, the highest among regions.

Repair of computers and communications equipment industry records the highest change in inventories

Change in inventories is defined as the value of ending less beginning inventory. Among industries, personal services for wellness, except sports activities posted the highest change in inventory of PHP25.7 million in 2016.

Region-wise, NCR recorded the highest change in inventory valued at PHP17.0 million.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for Other Service Activities sector for establishments with total employment 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 the reference period is November 15, 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 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 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 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, 2016 was used for the 2016 ASPBI.

Sampling Design

Selection of sample establishment for the 2016 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)

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 

 

where:

      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, D and J, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       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 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

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 Other Service Activities sector for establishments with TE of 20 and over was 87.0 percent (181 out of 208 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, twenty six 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 was 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 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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.

Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis. Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Value added  is gross output less intermediate input. Gross output for Other Service Activities sector is the sum of the total income (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others (less rent expense for land); non-industrial services done by others; 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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