Quarrying of stone, sand and clay industry dominates the sector in terms of number of establishments
The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 200 establishments in the formal sector of the economy were engaged in Mining and Quarrying in 2017. This number represents a decrease of 8.7 percent from the 219 establishments recorded in 2016. (Table A)
Among industries, quarrying of stone, sand and clay reported the most number of establishments with 107 or 53.5 percent of the total. This was followed by mining of non-ferrous metal ores except precious metals which accounted for 25.0 percent of the total establishments. (Figure 1 and Table 1)
Mining of non-ferrous metal ores except precious metals industry employs the highest number of workers
Total employment for the sector was recorded at 32,125 workers in 2017, a decrease of 2.3 percent from the 32,892 workers recorded in 2016. The top industry group in terms of number of workers was mining of non-ferrous metal ores except precious metals. This industry employed 22,625 workers or 70.5 percent of the total workforce. (Figure 2 and Table 1)
The sector recorded an average of 161 workers per establishment, higher by 6.9 percent than the average of 150 workers per establishment in 2016. Mining of hard coal (483 workers per establishment) and mining of non-ferrous metal ores except precious metals (453 workers per establishment) both surpassed the national average. (Table A and Table 2)
Average annual compensation increases by 17.9 percent
Total compensation paid by the sector to its employees in 2017 amounted to PhP11.5 billion. This translates to an average annual compensation of PhP360,537 per paid worker, which reflects an increase of 17.9 percent from the average annual compensation of PhP305,771 per paid worker in 2016. Mining and quarrying (n.e.c) paid the lowest average annual compensation of PhP30,307 per paid worker. (Tables A and 2)
Mining of non-ferrous metal ores except precious metals contributes the biggest share to total value of output and total intermediate expense
In 2017, the total value of output generated by the sector reached PhP140.6 billion. This represents an increase of 14.2 percent from the value of output generated in 2016 which amounted to PhP123.1 billion. Mining of non-ferrous metal ores except precious metals contributed the biggest share of 61.3 percent to total value of output. (Figure 4, and Tables A and 1)
Meanwhile, total intermediate expense incurred by the sector amounted to PhP55.7 billion. This amount was higher by 20.7 percent than its value in 2016 worth PhP46.2 billion. (Table A)
Among industry groups, mining of non-ferrous metal ores except precious metals (66.8%) spent the highest intermediate expense which accounted for about two-thirds of the total. (Figure 3 and Table 1)
Income per peso expense posts at 1.26 in 2017
The income per peso expense ratio for the sector was recorded at 1.26, a decline of 0.8 percent from the income per peso expense ratio of 1.27 in 2016. This implies that for every peso spent in 2017, an income of PhP1.26 was generated. (Tables A and 2)
Value added amounts to PhP 71.9 billion in 2017
The total value added generated for Mining and Quarrying sector reached PhP71.9 billion. This represents a 19.4 percent growth from the PhP60.2 billion value added reported in 2016. Mining of non-ferrous metal ores except precious metals accounted for more than half (53.1%) of the total value added. (Tables A and 1)
Labor productivity of the sector increases by 22.3 percent
The ratio of value added to total employment, a measure of labor productivity, was recorded at PhP2.2 million per worker. This represents a double-digit growth of 22.3 percent from the PhP1.8 billion value added per worker posted in 2016. (Table A)
No reported sales from e-commerce transactions in 2017
There were no reported sales for e-commerce transactions of Mining and Quarrying establishments for two consecutive years, 2016 and 2017.
(Sgd) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for the Mining and Quarrying establishments (Sector B).
The 2017 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 where the reference period is as of 15 November 2017.
Establishment Data Management System (EDMS) was utilized in the decentralized processing of the survey in the province 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.
The conduct of the 2017 ASPBI is authorized under Republic Act No. 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 establishment with 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 NCSB Resolution No.2 Series of 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 a specific date. TE refers to the total number of persons who works 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 establishment 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 2017 ASPBI.
The 2017 ASPBI used stratified systematic sampling with 5-digit PSIC serving as industry strata, and employment size as the second stratification variable.
All Establishments in the formal sector for the Mining and Quarrying Sector were covered on a 100 percent or on a certainty basis because of their relatively small number.
The total of a characteristic in an industry domain in each geographic domain (region) is
p = 1, 2,..., 17 regions (geographic domains)
xpj= value of the jth establishment with TE of 20 and over in an industry domain within each region
j= 1, 2, 3, …,mp establishments
mp= number of establishments with TE of 20 and over in an industry domain within each region
National level estimate of a characteristics by industry domain was obtained by aggregating separately the estimates for the particular industry domain from all the regions.
Response rate for Mining and Quarrying Sector for establishments was 86.4 percent (242 out of 280 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources and financial statement from Securities and Exchange Commission (SEC). However, reports of establishments which were found to be duplicates and out of business in 2017, were not included in the generation of statistical tables.
Limitation of Data
The 2017 ASPBI 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 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 cost incurred by the establishment during the year whether paid or payable. Valuation is at purchaser prices 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.
Intermediate expense are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
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 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.
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 the Mining and Quarrying sector is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and other costs.
Value of output represents the sum of the receipts from products and by-products sold, income from industrial services done for others, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account, and change in inventories of finished products and work-in-progress.