Beauty parlor activities industry accounts for majority of the number of establishments
The final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide showed that there were 11,907 establishments in the formal sector of the economy were engaged in Other Service Activities.
Among industries, beauty parlor activities registered the highest number of establishments at 3,661. This was followed by washing and dry cleaning of textile and fur products, and funeral and related activities with 1,824 and 1,578 establishments, respectively.
Figure 1 displays the percentage distribution of all establishments of the sector by industry sub-class in 2016.
Beauty parlor activities industry employs the most number of workers
Other service activities establishments engaged in other service activities hired a total of 80,331 workers in 2016. Of the total employment, 72,405 or 90.1 percent were paid employees while the rest were working owners and unpaid workers.
Most of the workers of the sector were employed in beauty parlor activities with 27,815 workers or 34.6 percent of the total employment. This was followed by funeral and related activities with 10,655 workers or 13.3 percent. Spa activities came next with 9,385 workers or 11.7 percent share.
Figure 2 shows the distribution of employment of the top five industries for all establishments of the sector by industry sub-class in 2016.
The sector recorded an average of seven workers per establishment. Of the 22 industries of the sector, seven surpassed the national average, of which repair of computer and peripheral equipment posted the highest average of 16 workers per establishment.
Employees of repair of computers and peripheral equipment receive the highest average annual compensation
Total compensation paid by the sector amounted to PHP9.6 billion in 2016, translating to an average annual compensation of PHP132,556 per employee.
At the industry level, beauty parlor activities spent the highest compensation of PHP2.6 billion or 27.5 percent of the total compensation for the sector. Spa activities spent the second highest compensation of PHP1.8 billion, and funeral and related activities came third with PHP1.0 billion. On the other hand, repair of luggage and handbags paid the lowest compensation of PHP4.0 million.
Employees of repair of computers and peripheral equipment received the highest average compensation of PHP295.4 thousand per annum. This was followed by employees of slendering and body building activities, and beauty treatment and personal grooming activities with average annual compensation of PHP231.6 thousand and PHP229.5 thousand, respectively. Employees of repair of boots and shoes, on the other hand, earned the lowest with average pay of PHP62.8 thousand per annum.
Figure 3 shows the average annual compensation of employees for the top five industries for all establishments of the sector by industry sub-class in 2016.
Beauty parlor activities industry emerges as top earner and spender
Total income generated by the sector reached PHP42.2 billion in 2016. Beauty parlor activities earned the highest income of PHP11.2 billion or 26.4 percent of the total income. The next highest income generating industry was spa activities with PHP7.2 billion or 17.0 percent share to total. Funeral and related activities generated the third highest income of PHP6.1 billion or 14.4 percent.
On the other hand, total expense incurred by the sector during the reference year amounted to PHP37.2 billion. Beauty parlor activities, being the highest earner, was also the highest spender with expense amounting to PHP10.0 billion or 27.0 percent of the total expense. Likewise, spa activities, and funeral and related activities placed second and third, spending PHP6.4 billion (17.2%) and PHP5.1 billion (13.8%), respectively.
Figure 4 shows the income generated and expense incurred by the top five industries for all establishments of the sector by industry sub-class in 2016.
Repair of communication equipment industry records the highest returns
The sector generated an income per peso expense of 1.13. This means that for every peso spent in the operation of the business, an income of PHP1.13 was generated.
Across industries, repair of communication equipment recorded the highest returns with an income per expense ratio of 1.24. Other industries which recorded above the national average income per expense ratio were as follows:
- Repair of wood furniture, 1.22
- Beauty treatment and personal grooming activities, 1.22
- Funeral and related activities, 1.19
- Barber shop activities, 1.18
- Other personal services for wellness activities, n.e.c., 1.16
- Repair of boots and shoes, 1.15
- Washing and dry cleaning of textile and fur products, 1.14
Shares of top three industries of the sector constitute more than half of the total value added
In 2016, value added generated by all establishments in the sector was estimated at PHP16.9 billion.
Industry-wise, the combined shares of the top three industries of the sector accounted for more than half (56.6%) of the total value added. Beauty parlor activities posted the highest value added of PHP4.1 billion (24.2%). Spa activities placed second with PHP3.1 billion (18.5%). Funeral and related activities ranked third with PHP2.3 billion (13.8%).
Labor productivity stands at PHP210.8 thousand per worker
Labor productivity, defined as value added per employment, was valued at PHP210.8 thousand per worker in 2016.
Among industries, beauty treatment and personal grooming activities generated the highest labor productivity of PHP446.9 thousand per worker while repair of boots and shoes recorded the lowest labor productivity of PHP98.1 thousand per worker. Other industries which exceeded the labor productivity at the national level were the following:
- Repair of computers and peripheral equipment, PHP439.2 thousand per worker
- Slendering and body building activities, PHP431.2 thousand per worker
- Spa activities, PHP334.7 thousand per worker
- Repair of communications equipment, PHP244.0 thousand per worker.
- Miscellaneous service activities, n.e.c., PHP228.0 thousand per worker
- Funeral and related activities, PHP219.0 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 amounts to PHP586.1 million in 2016
The total gross additions to tangible fixed assets (capital expenditure less sale of fixed assets) acquired by the sector amounted to PHP586.1 million in 2016.
More than one third or 35.9 percent of the total gross additions to tangible fixed assets for the sector was acquired by slendering and body building activities worth PHP210.5 million. This was followed by beauty treatment and personal grooming activities, and funeral and related activities with gross additions to fixed assets of PHP150.4 million (25.7%) and PHP53.8 million (9.2%), respectively.
Spa activities industry records the highest change in inventories
Change in inventories, defined as the value of ending less beginning inventory, was valued at PHP18.9 million in 2016.
Across industries, spa activities posted the highest change in inventories of PHP44.0 million. Repair and servicing of household appliances and repair of personal and household goods, n.e.c. reported change in inventories amounting to PHP14.1 million and PHP11.8 million, respectively.
This Special Release presents the final results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI) for all Other Service Activities establishments (sector S).
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 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. 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 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 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 was
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,
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 TE of 20 and over for 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, BPM industries, GOCC's and with TE 100 and over)
c = denotes the certainty employment strata in TE of 20 and over
p = 1,2,...18 regions (geographic domains)
Xcpj = value of the 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) was obtained by aggregating the estimated for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domains in each region
National level estimate 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 Other Service Activities sector was 84.26 percent (755 out of 896 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 20 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 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 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; 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.
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.