TABLE A Comparative Summary Statistics for All Administrative and Support Service Establishments: Philippines, 2017 and 2016
Activities of employment placement agencies industry records the highest in terms of number of establishments
The final results of the Annual Survey of Philippine Business and Industry (ASPBI) recorded a total of 6,466 establishments in the formal sector of the economy that were engaged in administrative and support service activities in 2017. This represents a decrease of 8.6 percent compared with the 7,077 establishments recorded in 2016.
Among the industries, activities of employment placement agencies had the highest number of establishments of 2,126 or 32.9 percent of the total. This was followed by travel agency and tour operator activities with 799 establishments or 12.4 percent. Call centers and other related activities ranked third with 700 establishments or 10.8 percent.
Figure 1 shows the percentage distribution of the number of establishments for all administrative and support service establishments by industry group in 2017.
Total employment of the sector increases by 3.3 percent
The total employment for the sector was recorded at 1,088,198 workers in 2017, an increase of 3.3 percent compared with the 1,053,054 workers in 2016. Of the total employees, 1,087,649 were paid and the rest were working ownersand unpaid workers.
By industry group, call centers and other related activities employed the highest number of workers of 561,399 or 51.6 percent of the total. This was followed by temporary employment agency activities with 259,236 workers (23.8%). Private security activities ranked third with 125,922 workers (11.6%).
Figure 2 shows the distribution of employment for all establishments of the sector by industry group in 2017.
The sector’s average number of workers per establishment was recorded at 168, higher by 12.8 percent than the 149 workers per establishment in 2016.
The following were the top three industries in terms of the number of workers per establishment:
- Call centers and other related activities, 802 workers
- Temporary employment agency activities, 703 workers
- Cleaning activities, 217 workers
Average annual compensation reaches PHP267.0 thousand per employee
The sector paid a total compensation of PHP290.4 billion to its employees in 2017, which translates to an average annual compensation of PHP267.0 thousand per employee. Compared with the average annual pay of PHP247.8 thousand in 2016, the average annual pay in 2017 increased by 7.7 percent.
Among the industries, call centers and other related activities had the highest average annual compensation of PHP381.0 thousand per employee. This was followed by other reservation service and related activities with an average annual pay of PHP361.0 thousand per employee. Organization of conventions and trade shows ranked third with an average annual compensation of PHP345.1 thousand per employee.
Figure 3 shows the average annual compensation of employees for the top five industries for all administrative and support service establishments by industry group in 2017.
Call centers and other related activities industry contributes the biggest share to total income and expense
The total income generated by the sector amounted to PHP561.5 billion in 2017, higher by 14.5 percent compared with the reported income of PHP490.4 billion in 2016. Call centers and other related activities had the biggest share to total income of PHP406.1 billion or 72.3 percent.
The total expense incurred by the sector reached PHP494.9 billion in 2017, higher by 17.3 percent than the total expense of PHP421.8 billion in 2016. Call centers and other related activities being the biggest income generator also had the biggest proportion to total expense worth PHP355.8 billion or 71.9 percent of the total.
The income per peso expense generated by the sector stood at 1.13 in 2017. Compared with the 2016 income per peso expense of 1.16, this was lower by 2.6 percent.
Industry-wise, renting and leasing of other machinery, equipment and tangible goods, n.e.c. recorded the highest income per peso expense of 1.30. This was followed by investigation activities with an income per peso expense of 1.22. Other reservation service and related activities placed third with income per peso expense of 1.17.
Total value added of the sector amounts to PHP367.9 billion
The total value added generated by the sector amounted to PHP367.9 billion in 2017, an increase of 5.2 percent compared with the PHP349.8 billion in 2016.
The top three contributors to the total value added of the sector were the following industries:
- Call centers and other related activities, PHP269.4 billion (73.2%)
- Temporary employment agency activities, PHP42.8 billion (11.6%)
- Activities of employment placement agencies, PHP16.6 billion (4.5%)
Labor productivity, defined as the ratio of value added to total employment, was estimated at PHP338.1 thousand per worker in 2017. This reflects an increase of 1.8 percent from the reported labor productivity of PHP332.2 thousand in 2016.
By industry group, renting and leasing of motor vehicleshad the highest labor productivity of PHP1.8 million per worker. On the other hand, private security activities recorded the lowest labor productivity of PHP104.8 thousand per worker.
Figure 4 shows the labor productivity of the top five industries for all establishments of the sector by industry group in 2017.
Gross additions to tangible fixed assets sums up to PHP10.8 billion
Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP10.8 billion in 2017, lower by 36.9 percent from the PHP17.0 billion in 2016.
Call centers and other related activities acquired the highest gross additions to tangible fixed assets worth PHP7.8 billion (72.3%). This was followed by renting and leasing of motor vehicles and renting and leasing of other machinery, equipment and tangible goods, n.e.c. with gross additions to tangible fixed assets of PHP597.8 million (5.6%) and PHP522.5 million (4.9%), respectively.
Government grants PHP9.5 billion worth of subsidy
The total subsidies granted by the government for the sector totaled to PHP9.5 billion in 2017. This figure was higher by 3.3 percent from the PHP9.2 billion subsidy in 2016. This amount was distributed to call centers and other related activities (PHP9.3 million or 98.1%) and temporary employment agency activities (PHP184.0 million or 1.9%).
Total sales from e-commerce reaches PHP42.9 million
In 2017, the total sales from e-commerce transactions of the sector reached PHP42.9 million, lower by 92.9 percent compared with the PHP603.6 million sales in 2016. Only call centers and other related activities recorded e-commerce sales in 2017.
(Sgd.)ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all Administrative and Support Service Activities establishments (Sector N).
The ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance, and trends of economic activities of the formal sector in the entire country for the year 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the provinces as well as the online accomplishment of questionnaire through the PSA website.
Data are presented by industry sub-group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national level.
The conduct of the 2017 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 2017 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 partnership
- Cooperatives and foundations
- Single proprietorship with employment of 10 and over
- Single proprietorships with branches
Hence, the 2017 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 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishments frame are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.
Taxonomy of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.
Economic Organization refers to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC which was approved for adoption by government agencies and instrumentalities through PSA Resolution No. 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 TE as of a 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 2017 was used for the 2017 ASPBI.
The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.
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 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
b. Certainty Stratum
The total of a characteristic (Xc) for the certainty employment stratum in the Cth industry domain was
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 obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domain.
For establishments with TE of 20 and over, the 17 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 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 jth establishment 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
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, GOCCs and with TE 100 and over)
The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region,
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 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 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.
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’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 20-99 for the industry domain within each geographic domain (region)
Response rate for all Administrative and Support Service Activities establishments was 85.8 percent (2,048 out of 2,386 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 46 establishments responded online.
Reports of the remaining non-reporting establishments were taken from the financial statements from the Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments that were found to be duplicate of another establishment, out-of-scope and out of business in 2017 were not included in the generation of statistical tables.
Limitation of Data
The survey covered only the formal sector of the economy.
Concepts and Definitions of Terms
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.
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.
E-commerce is the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
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.
Expense is the 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.
Gross additions to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue is the 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.
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.
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.
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.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.
Value added is gross output less intermediate input. Gross output for Administrative and Support Service Activities sectoris the sum of income from service rendered, real estate sales less real estate sold, commissions and fees earned, income from renting and leasing services of real estate properties, income from non-industrial service done for others (less rent income from land), sales of goods (less cost of goods sold), grants and donations, other income, capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is 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; payouts and other expense.