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Release Date :
Reference Number :
2019-249

Table A

Quarrying of stone, sand and clay and mining of non-ferrous metal ores industries dominate the sector

The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 130 establishments with total employment (TE) of 20 and over were engaged in Mining and Quarrying in the formal sector of the economy. This number represents a decrease of 3.0 percent compared with the 134 number of establishments recorded in 2016.

Among industries, quarrying of stone, sand and clay reported the most number of establishments of 62 or 47.7 percent of the total. This was followed by mining of non-ferrous metal ores except precious metals with 40 establishments (30.8%).

Figure 1 shows the percentage distribution of  Mining and Quarrying establishments with TE of 20 and over by industry group in 2017.

Figure 1

Among regions, Central Visayas registered the most number of establishments with 22 or 16.9 percent of the total. Caraga and CALABARZON placed second and third with 20 establishments (15.4%) and 17 establishments (13.1%), respectively.

Mining of non-ferrous metal ores except precious metals industry employs the highest number of workers

Total employment in 2017 for the sector was recorded at 31,522 workers, a decrease of 1.3 percent compared with the 31,950 workers recorded in 2016. Of the total employment, 99.6 percent were paid employees while the rest were working owners or unpaid workers.

By industry group, mining of non-ferrous metal ores except precious metals recorded the highest number of workers of 22,584 or 71.6 percent of the total. This was followed by mining of hard coal with a total of 3,865 workers (12.3%) and quarrying of stone, sand and clay with 3,513 workers (11.1%).

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

Figure 2

At the regional level, Davao Region and Caraga employed the highest number of workers of 7,471 (23.7%) and 5,523 (17.5%), respectively. Cordillera Administrative Region (CAR) occupied the third slot with 4,637 workers (14.7%). On the other hand, Northern Mindanao had the lowest with 142 workers (0.5%).

The sector recorded an average of 242 workers per establishment, higher by 1.7 percent than the reported average workers per establishment of 238 in 2016. Two industry groups that surpassed the national average for the sector were mining of non-ferrous metal ores except precious metalsand mining of hard coalwith an average of 565 and 483 workers per establishment, respectively.

Average annual compensation increases by 17.3 percent

Total compensation paid by the sector to its employees in 2017 amounted to PHP11.4 billion. This translates to an average annual compensation of PHP361,802 per paid employee, which reflects an increase of 17.3 percent compared with the averageannual compensation of PHP308,355per paid employeein 2016.

Industry-wise, support activities for other mining and quarrying paid the highest average annual compensation of  PHP596,137 per paid employee. This was followed by mining of non-ferrous metal ores except precious metals, and mining of hard coal with average annual compensation of PHP367,613 and PHP268,732 per paid employee, respectively.

Figure 3 displays the average annual compensation of paid employees for Mining and Quarrying establishments with TE of 20 and over by industry group in 2017.

Figure 3

Among regions, MIMAROPA Region paid the highest average annual compensation of PHP883,643 per paid employee. This was followed by NCR and Bicol Region which posted an average annual compensation per paid employee of PHP744,961 and PHP559,639, respectively. On the other hand, employees in Northern Mindanao received the lowest average annual pay of PHP64,432 per paid employee.

Mining of non-ferrous metal ores except precious metals contributes the highest share in value of output and intermediate expense

In 2017, the total value of output generated by the sector reached PHP139.3 billion. This represents an increase of 15.1 percent from the value of output generated in 2016 amounting to PHP121.0 billion.Mining of non-ferrous metal ores except precious metals contributed the highest share amounting to PHP86.0 billion or 61.7 percent of the total value of output. The lowest was recorded in mining and quarrying,n.e.c. with less than one percent share or a total value of output of 52.0 million.

The top three regions in terms of value of output had a combined share of 53.2 percent or 74.1 billion. Among these regions, Caraga had the highest value amounting to PHP28.4 billion (20.4%). This was followed by Western Visayas and MIMAROPA Region with PHP24.6 billion (17.6%) and PHP21.1 billion (15.2%), respectively.

Figure 4 shows the value of output and intermediate expense for Mining and Quarrying establishments with TE of 20 and over by industry group in 2017.

Figure 4

Meanwhile, total intermediate expense incurred by the sector amounted to PHP54.9 billion in 2017. This amount was higher by 21.9 percent than its amount in 2016 worth PHP45.0 billion.

Among industry groups, mining of non-ferrous metal ores except precious metals spent the highest amounting to PHP37.1 billion or about two-thirds (67.7%) of the total intermediate expense of the sector. Quarrying of stone, sand and clay recorded the least with PHP3.0 billion or 5.4 percent of the total intermediate expense.

Across regions, Caraga incurred the highest intermediate expense amounting to PHP9.9 billion (18.0%) in 2017. Bicol Region and Central Visayas placed second and third with respective shares of PHP9.8 billion (17.9%) and PHP9.5 billion (17.3%).

Mining of hard coal and mining and quarrying, n.e.c. post the highest return

The generated income per peso expense for the sector stood at 1.27 in 2017. This indicates a decrease of 0.8 percent from the income per peso expense ratio of 1.28 a year ago. The highest income-expense ratio were noted in mining of hard coal, and mining and quarrying, n.e.c., both with income per peso expense of 1.62, surpassing the national level. Support activities for other mining and quarrying reported the least income-expense ratio of 0.96.

At the regional level, MIMAROPA Region recorded the highest return of 1.70. Other regions that surpassed the sector’s income-expense ratios in 2017 were as follows:

  •  Western Visayas,1.61
  •  Northern Mindanao, 1.41
  •  Cordillera Administrative Region (CAR), 1.35
  •  Bicol Region, 1.30

Value added amounts to PHP71.9 billion in 2017

Total value added generated for Mining and Quarrying sector with TE of 20 and over was estimated at PHP71.9 billion in 2017.This represents a two-digit growth of 20.8 percent from the PHP59.5 billion reported value added in 2016.

Among the industries, mining of non-ferrous metal ores except precious metals posted the highest value added in 2017, amounting to more than half (53.2%) of the total value added or PHP38.3 billion.

The top three regions in terms of value added of the sector were the following:

  •  MIMAROPA Region with PHP16.4 billion (22.8%)
  •  Western Visayas with PHP15.3 billion (21.3%)
  •  Caraga with PHP12.1 billion (16.8%).

Labor productivity in MIMAROPA amounts to PHP14.7 million per worker

The ratio of value added to total employment, a measure of labor productivity, was estimated at PHP2.3 million per worker. This represents a double-digit growth of 22.4 percent compared with the PHP1.9 million value added per employee in 2016.

Establishments engaged in mining of hard coal, with labor productivity of PHP4.0 million per worker, led the sector. Meanwhile, mining and quarrying, n.e.c. establishments posted the lowest labor productivity of PHP98,054 per worker.

Figure 5 shows the distribution of labor productivity for Mining and Quarrying establishments with TE of 20 and over by industry group in 2017.

Figure 5

The top four most labor productive regions that surpassed the overall labor productivity for the sector in 2017 were:

  •  MIMAROPA Region with PHP14.7 million per worker
  •  Bicol Region with PHP7.3 million per worker
  •  Western Visayas with PHP4.1 million per worker, and
  •  NCR with PHP2.4 million per worker.

No reported sales from e-commerce in 2017

There were no reported sales from e-commerce transactions of Mining and Quarrying establishments with TE of 20 and over in 2016 and 2017.

 

 

 

(Sgd.) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for the Mining and Quarrying establishments in the formal sector with total employment of 20 and over.

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 in2018 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.

Legal Authority

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.

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

Establishments with TE of 20 and over 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 estimate of the total of a characteristic for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

where:

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

Response rate for Mining and Quarrying Sector for establishments with TE of 20 and over was 82.1 percent (142 out of 173 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.


 

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