2017 Annual Survey of Philippine Business and Industry (ASPBI) - Administrative and Support Service Activities Sector For Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2019-293

Release Date: 

Monday, October 14, 2019

TABLE A Comparative Summary Statistics for Administrative and Support ServiceEstablishments with Total Employment of 20 and Over: Philippines, 2017 and 2016

Table A

Call centers and other related activities industry posts the highest in terms of number of establishments

The Annual Survey of Philippine Business and Industry (ASPBI) preliminary results reported a total of 1,872 establishments with total employment (TE) of 20 and over in the formal sector of the economy that were engaged in administrative and support service activities in 2017. This is the same as to the number of establishments reported in 2016.

Among the industries, call centers and other related activities had the highest number of establishments of 580 or 31.0 percent of the total. Private security activities followed with 380 establishments or 20.3 percent. Temporary employment agency activities ranked third with 308 establishments or 16.5 percent.

Figure 1 shows the percentage distribution of administrative and support service establishments with TE of 20 and over by industry group in 2017.

Figure 1

Among the regions, the National Capital Region (NCR) had the most number of establishments of 1,174 or 62.7 percent of the total. Central Visayas and CALABARZON placed afar second and third with 186 establishments (9.9%) and 129 establishments (6.9%), respectively.

Call centers and other related activities industry records the highest number of workers

In 2017, the total employment for establishments with TE 20 and over for the sector reached 1,052,375 workers, an increase of 3.1 percent compared with the 1,020,449 workers in 2016. Of the total workers,1,051,958 were paid employees and the rest were working owners and unpaid workers.

By industry group, call centers and other related activities registered the highest number of workers of 560,207 or 53.2 percent of the total employment. This was followed by temporary employment agency activities with 258,768 workers (24.6%). Private security activities ranked third with 124,028 workers (11.8%).

Figure 2 shows the distribution of employment for establishments with TE of 20 and over for the sector by industry group in 2017.

Figure 2

Across regions, NCR had the highest number of workers of 651,047 or 61.9 percent of the total. This was followed by Central Visayas with 103,658 workers (9.8%). CALABARZON placed third with 101,915 workers (9.7%).

The average number of workers per establishment for the sector was recorded at 562, higher by 3.1 percent than the 545 workers per establishment in 2016. Call centers and other related activities posted the highest number of workers per establishment of 966. On the other hand, renting and leasing of personal and household goods recorded the lowest number of 47 workers per establishment.

Office administrative and support activities industry paid the highest average annual compensation

The sector paid a total compensation of PHP282.7 billion to its employees in 2017, translating to an average annual compensation of PHP268.8 thousand per employee. Compared with the average annual pay of PHP248.7 thousand in 2016, the average annual pay in 2017 increased by 8.1 percent.

Among the industries, office administrative and support activities had the highest average annual compensation of PHP513.6 thousand per employee.This was followed by other reservation service and related activities with an average annual pay of PHP405.0 thousand per employee. Call centers and other related activities ranked third with an average annual compensation of PHP381.1 thousand per employee.

Figure 3 shows the average annual compensation of employees for establishments with TE of 20 and over for the sector by industry group in 2017.

Figure 3

Region-wise, establishments in NCR paid the highest total compensation of PHP206.5 billion. This was followed by Central Visayas and CALABARZON with a total compensation of PHP24.5 billion and PHP16.3 billion, respectively.

Employees in NCR received the highest average annual compensation of PHP317.3 thousand per employee. CAR came in second with an average annual compensation of PHP280.4 thousand per employee and Bicol Region placed third with PHP264.0 thousand per employee.

Call centers and other related activities industry generates the biggest share to income and expense

The total income generated by the sector amounted to PHP526.8 billion in 2017, higher by 15.4 percent compared with the reported income of PHP456.7 billion in 2016.Call centers and other related activities had the biggest share to total income of PHP404.9 billion or 76.9 percent.

On the other hand, the total expense incurred by the sector reached PHP464.7 billionin 2017, higher by 18.2 percent as compared to 2016 with a total expense of PHP393.3 billion. Call centers and other related activities which was the biggest income generator also had the biggest proportion to expense worth PHP354.8 billion or 76.4 percent of the total.

At the regional level, NCR had the highest income and expense amounted to PHP391.5 billion and PHP349.4 billion, respectively.

The income per peso expense generated by the sector for establishments with TE of 20 and over stood at 1.13. Compared with the 2016 income per peso expense of 1.16, this is 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 1.28. This was followed by travel agency and tour operator activities having an income per expense ratio of 1.27. Office administrative and support activities placed third with income per expense ratio of 1.19.

Among the regions, Western Visayas recorded the highest income per expense ratio of 1.22. On the other hand, Ilocos Region registered the lowest income per expense ratio of 1.03.

Value added of the sector reaches PHP354.1 billion

In 2017, the estimated total value added generated by the sector amounted to PHP354.1 billion.

The top three contributors to the total value added of the sector were the following industries:

  •  Call centers and other related activities, PHP268.8 billion (75.9%)
  •  Temporary employment agency activities, PHP42.6 billion (12.0%)
  •  Private security activities, PHP12.3 billion (3.5%)

Labor productivity, defined as the ratio of value added to total employment, was estimated at PHP336.5 thousand per worker in 2017. This reflects an increase of 3.6 percent from the labor productivity of PHP324.7 thousand in 2016.

By industry group, renting and leasing of other machinery, equipment and tangible goods, n.e.c. had the highest labor productivity of PHP1.0 million per worker.  On the other hand, private security activities recorded the lowest labor productivity of PHP99.3 thousand per worker.

Figure 4 shows the labor productivity of the top five industries of the sector for establishments with TE of 20 and over in 2017.

Figure 4

Region-wise, NCR had the highest labor productivity of PHP396.6 thousand per worker while Cagayan Valley registered the least labor productivity of PHP70.2 thousand per worker.

Sales from e-commerce transactions amounts to PHP41.2 million

E-commerce refers to the selling of products or services over electronic systems. In 2017, total sales from e-commerce transactions of the sector for establishments with TE of 20 and over amounted to PHP41.2million, lower by 93.2 percent compared with the PHP603.6 million sales in 2016.

Only call centers and other related activities reported e-commerce sales transaction amounting to PHP41.2 million in 2017.  This amount was distributed to NCR and CAR with e-commerce sales of PHP28.7 million and PHP12.4 million, respectively.

 

 


TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for administrative and support service activities establishments with total employment of 20 and over.

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 in 2017.

The survey was conducted nationwide in 2018 with 2017 as the reference period of data, except for employment which is as of 15 November 2017.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.

Data are presented by industry group or 3-digit level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national and regional level.

Legal Authority

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 establishment frame or 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 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 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.

Sampling Design

The 2017 ASPBI uses a stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.

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 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 20 to 49 and TE 50 to 99
p = 1, 2,...,17 regions (geographic domains)
xspj = value of the jth establishment in the non-certainty employment strata in TE 20 to 49 and TE 50 to 99for an industry domain in each region
j = 1, 2, 3,…,nsp establishments

W spj = weight of the jth establishment in the non-certainty employment strata in TE 20 to 49 and TE 50 to 99 for an industry domain in each region

Formula

Nsp = total number of establishments in the non-certainty employment strata in TE 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 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, GOCCs, and with TE 20 and over)

The estimate of the total of a characteristic (Xcp) for 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,...,17 regions (geographic domains)
xcpj = value of the jth establishment in the certainty employment strata in TE of 20and 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 (geographic domain) is obtained by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

Formula

Where d denotes the industry domains and p refers to region.

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

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 20-99 for the industry domain within each geographic domain (region)

Response Rate

The response rate for Administrative and Support Service Activities establishments with TE of 20 and over was 87.7 percent (1,636 out of 1,865establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 40 establishments responded online.

Reports of the remaining non-reporting establishments were taken from the financial statements from Securities and Exchange Commission (SEC) and other available data sources. Reports of establishments which were found to be duplicate of another establishment’s report, 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 was covered in the survey.

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 refers tothe 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.

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.

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 isthe 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 thecash 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.

Total employment is the number of persons who worked in for the establishment as of 15 November 2017.

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; and other expense.


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

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