2017 Annual Survey of Philippine Business and Industry (ASPBI) - Education Sector for Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2019-186

Release Date: 

Friday, June 28, 2019

TABLE A Comparative Summary Statistics for Education Establishments with Total Employment of 20 and Over: Philippines, 2017 and 2016.

Table A

Secondary education industry leads in terms of number of establishments

The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide showed that a total of 3,734 establishments with a total employment (TE) of 20 and over in the formal sector of the economy were engaged in education activities. This number represents a 0.3 percent increase from the 3,722 establishments reported in 2016.

Secondary/high school education recorded the highest number of establishments of 1,590 or 42.6 percent of the total. Higher education followed with 1,303 establishments (34.9%). Pre-primary/pre-school education, on the other hand, had the least number of 35 establishments (3.6%).

Figure 1 displays the percentage distribution of the number of establishments with TE of 20 and over engaged in education by industry group in 2017.

Figure 1

At the regional level, the National Capital Region (NCR) had the most number of establishments of 837 or 22.4 percent of the total. This was followed by CALABARZON  with 719 establishments (19.3%) and Central Luzon with 461 establishments (12.3%).

Higher education industry hires the highest number of workers

The sector employed a total of 293,492 workers in 2017, higher by 6.1 percent from the 276,542 workers recorded in 2016. Of the total employment, 291,606 or 99.4 percent were paid employees while the rest were working owners and unpaid workers.

Among the industries, higher education employed the highest number of workers at 171,817 or 58.5 percent of the total. Secondary/high school education ranked second with 83,185 workers (28.3%). Conversely, pre-primary/pre-school education employed the least number at 4,794 workers (1.6%).

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 the country, NCR hired the highest number of workers of 84,051 (28.6%). This was followed by CALABARZON with 49,859 workers (17.0%) and Central Luzon with 29,008 workers (9.9%). ARMM, on the other hand, employed the least number of workers of 3,253 (1.1%).

The sector’s average number of workers was recorded at 79 per establishment, a 6.8 percent increase compared with the average workers of 74 in 2016.  Higher education had the highest average of 132 workers per establishment. On the other hand, pre-primary/pre-school education posted the lowest average of 36 workers per establishment.

Higher education industry pays the highest average compensation

In 2017, the total compensation paid by the sector for establishments with TE of 20 and over amounted to PHP77.7 billion, which translates to an average annual compensation of PHP266.4 thousand per paid employee.  This figure was higher by 1.0 percent from the recorded average annual compensation of PHP263.8 thousand in 2016.

Across industry groups, higher education paid the highest average annual compensation of PHP301.5 thousand per paid employee.This was followed by secondary/high school education paying PHP227.1 thousand per paid employee. Primary/elementary education paid the lowest average annual compensation of PHP174.2 thousand per paid employee.

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

Figure 3

Among the regions, NCR paid the highest average annual compensation of PHP400.2 thousand per employee. Cordillera Administrative Region (CAR) and Central Visayas ranked second and third, paying an average annual compensation of PHP253.0 thousand and PHP242.4 thousand per paid employee, respectively. ARMM, on the other hand, paid the least average annual compensation of PHP97.5 thousand per paid employee.

Higher education industry tops in income and expense

Total income generated by the sector in 2017 reached PHP182.5 billion, an increase of 9.3 percent from the PHP166.9 billion income in 2016.

By industry group, higher education earned the highest income worth PHP126.1 billion or 69.1 percent of the total. Secondary/high school education ranked second with income of PHP38.5 billion or 21.1 percent. Pre-primary/pre-school education generated the lowest income of PHP2.1 billion or 1.1 percent.

By region, NCR generated the highest income of PHP85.5 billion or 46.9 percent of the total. CALABARZON followed with PHP26.6 billion (14.6%) and Central Visayas with PHP15.1 billion (8.3%) income. ARMM, on the other hand, generated the lowest income of PHP541.3 million (0.3%).

Meanwhile, total expense incurred by the sector in 2017 amounted to PHP151.1 billion, up by 7.0 percent from the PHP141.1 billion total expense in 2016.

Among the industry groups, higher education, which earned the highest income, also incurred the highest expense of PHP103.0 billion (68.1%). Similarly, pre-primary/pre-school education, which generated the least income, also had the lowest expense of PHP1.7 billion (1.1%).

At the regional level, NCR incurred the highest expense amounting to PHP68.7 billion (45.4%). CALABARZON and Central Visayas ranked second and third, spending PHP21.6 billion (14.3%) and PHP12.8 billion (8.5%), respectively.

The income per peso expense generated by the sector for establishments with TE of 20 and over stood at 1.21 in 2017.  This means that an income of PHP1.21 was generated for every peso spent in the operation of the business. Compared with the income per peso expense of 1.18 in 2016, the income per peso expense in 2017 increased by 2.5 percent.

Higher education industry records highest value added

The total value added generated by establishments with TE of 20 and over in 2017 was estimated at PHP126.2 billion, higher by 11.3 percent compared with the PHP113.3 billion value added in the previous year.

By industry, higher education contributed the highest value added worth PHP87.1 billion or 69.0 percent of the total, while pre-primary/pre-school education reported the lowest at PHP1.4 billion or 1.1 percent.

Labor productivity, which is the ratio of value added to employment, was estimated at PHP429.9 thousand per worker in 2017. This indicator was 4.9 percent higher than the PHP409.8 thousand labor productivity in 2016.

Higher education emerged as the most labor productive industry with productivity of PHP506.7 thousand per worker. Primary/elementary education, on the other hand, registered the least labor productivity of PHP254.3 thousand per worker.

Figure 4 shows the labor productivity for establishments with TE of 20 and over engaged in education services by industry group in 2017.

Figure 4

Region-wise, NCR generated the highest labor productivity of PHP682.4 thousand per worker. This was followed by CAR and Central Visayas with labor productivities of PHP403.0 thousand and PHP386.3 thousand per worker, respectively. ARMM had the least labor productivity of PHP127.7 thousand per worker.

 

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Education establishments with total employment (TE) 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 the year 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 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.

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 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 jthestablishment in the non-certainty employment strata in TE of 20 to 49 and 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 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 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,..., 17 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 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 Education establishments with TE of 20 and over was 90.8 percent (1,031 out of 1,136 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 45 establishments responded online.

Reports of the remaining non-reporting establishments were taken from financial statements from Securities and Exchange Commission (SEC) and other available 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 all economic activities of education sector except public education services. Only the formal sector 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 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.

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

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.

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.

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 Education sector is 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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