2017 Annual Survey of Philippine Business and Industry (ASPBI) - Professional, Scientific and Technical Activities Sector Establishment with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2019-190

Release Date: 

Friday, July 5, 2019

TABLE A Comparative Summary Statistics for Professional, Scientific and Technical Establishments with Total Employment of 20 and Over: Philippines, 2017 and 2016

Table A

Architectural and engineering activities and related technical consultancy industry has the most number of establishments

The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that 859 establishments with total employment of 20 and over in the formal sector of the economy were engaged in professional, scientific and technical activities. This number increased by 5.9 percent compared with the 811 establishments recorded in 2016.

Among the industry groups, architectural and engineering activities and related technical consultancy had the highest number of establishments of 187 or 21.8 percent of the total. This was followed by management consultancy activities and advertising with 182 establishments (21.2%) and 150 establishments(17.5%), respectively.

The percentage distribution of establishments with TE of 20 and over for the sector by industry group is illustrated in Figure 1.

Figure 1

At the regional level, majority (81.4%) of the establishments were located in the National Capital Region (NCR). CALABARZON and Central Visayas ranked far second and third with 49 establishments (5.7%) and 37 establishments (4.3%), respectively. The remaining 8.6 percent were in the rest of the regions.

Architectural and engineering activities and related technical consultancy industry employs the highest number of workers

The total employment of the sector for establishments with TE of 20 and over was 119,111 in 2017, a 5.3 percent increase compared with the 113,122 workers in 2016. Of the total employment, 99.7 percent were paid employees.

Architectural and engineering activities and related technical consultancy topped all other industries with employment of 30,152 or 25.3 percent of the total. This was followed by management consultancy activities with 25,939 workers (21.7%) and accounting, bookkeeping and auditing activities; tax consultancy with 16,088 workers (13.5%).

The distribution of employment for establishments with TE of 20 and over for the sector by industry group  is illustrated in Figure 2.

Figure 2

Across the country, NCR recorded the highest employment of 96,222 (80.8%). SOCCSKSARGEN, on the other hand, registered the lowest at 189 workers (0.2%).

Among the industry groups, research and experimental development in information technology had the highest average number of workers per establishment of 320, while veterinary activities registered the lowest at 33 workers per establishment.

Average annual compensation increases by 5.5 percent

In 2017, a total compensation of PHP71.2 billion was paid to employees of the sector for establishments with TE of 20 and over. This translates to an average annual compensation of PHP599.0 thousand per paid employee. Compared with the average annual pay of PHP568.0 thousand in 2016, this was higher by 5.5 percent.

Among the industry groups, management consultancy activities paid the highest average annual pay of PHP940.8 thousand per paid employee. This was followed by activities of head offices, and research and experimental development in information technology with average annual compensation of PHP792.6 thousand and PHP750.6 thousand per paid employee, respectively.

By region, establishments in Northern Mindanao paid the highest average annual compensation of PHP953.3 thousand per paid employee. This was followed by establishments in Central Luzon and SOCCSKSARGEN with average annual compensation of PHP735.2 thousand and PHP630.4 thousand per paid employee, respectively.

Figure 3 shows the average annual compensation of paid employees for the top five industries of the sector for establishments with TE of 20 and over by industry group.

Figure 3

Activities of the head offices industry contributes the highest to total income and total expense

The total income generated by the sector for establishments with TE of 20 and over reached PHP242.2 billion in 2017, a 6.1 percent decrease compared with the PHP257.9 billion income in 2016. On the other hand, total expense incurred by the sector reached PHP206.0 billion, higher by 3.3 percent from the PHP199.4 billion total expense in 2016.

Among the industries, activities of head offices shared the highest to total income and total expense amounting to PHP70.9 billion (29.3%) and PHP66.8 billion (32.4%), respectively. On the contrary, veterinary activities had the least contribution of PHP248.9 million to total income and PHP231.4 million to total expense.

Figure 4 shows the income and expense of the top five industries of the sector for establishments with total employment of 20 and over by industry group in 2017.

Figure 4

In 2017, the top three regions in terms of income and expensewere as follows:

• NCR with income of PHP219.9 billionand expense of PHP186.7 billion;
• CALABARZON with income of PHP9.7 billion and expense of PHP9.4 billion; and
• Central Visayas with income of PHP5.1 billion and expense of PHP4.6 billion.

Meanwhile, the income per peso expense obtained by the sector for establishments with TE of 20 and over stood at 1.18. This indicates that for every peso spent, an income of PHP1.18 was generated. This was a decrease of 8.5 percent compared with the 2016 income per peso expense of 1.29.

At the regional level, Davao Region recorded the highest income per peso expense of 1.92 while the lowest was recorded in CALABARZON at 1.04.

Value added amounts to PHP136.7 billion

The total value added generated by the sector for establishments with TE of 20 and over was estimated at PHP136.7 billion in 2017. This indicates a 14.8 percent decrement compared with the 2016 value added of PHP160.5 billion.

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

• activities of head offices, PHP34.0 billion (24.9%);
• management consultancy activities, PHP33.8 billion (24.7%); and
• architectural and engineering activities and related technical consultancy, PHP28.9 billion (21.2%).

Value added per total employment, which is a measure of labor productivity, was estimated at PHP1,147.7 thousand per worker in 2017.  This was 19.1 percent lower compared with the PHP1,418.5 thousand labor productivity in 2016.

Among the industries, activities of head offices had the highest labor productivity of PHP5,226.2 thousand per worker. This was followed by management consultancy activities with labor productivity of PHP1,303.0 thousand per worker.

Figure 5 shows the labor productivity for the top five industries of the sector for establishments with TE of 20 and over by industry group in 2017.

Among the regions, SOCCSKSARGEN had the highest labor productivity amounting to PHP1,272.1 thousand per worker. On the other hand, CALABARZON recorded the least productivity of PHP501.5 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 Professional, Scientific and Technical Activities sector for establishments with total employment (TE) 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 in 2018 with the year 2017 as the reference period, except for employment where the reference period is 15 November 2017.

Establishment Data Management System (EDMS) was utilized in the decentralized processing of the survey in the provinces 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 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 Works 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 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 comprised 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 establishmentis 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 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

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 TE of 20 and over  for an industry domain in each region,

where:

          s = denotes the non-certainty employment strata in TE of 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 99 for 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

          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 100 and over)

The estimate of the total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region,

where:

          c   denotes the certainty employment strata in TE of 20 and over
          p  = 1, 2,..., 17 regions (geographic domains)

         xcpj  = value of the jthestablishment 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 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 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

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 Professional, Scientific and Technical Activities sector for establishments with TE of 20 and over was 85.5 percent (419 out of 490 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 19 establishments responded online.

Reports of the remaining non-reporting establishments were taken from 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

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 online 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. 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 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 for the establishment as of 15 November 2017.

Value added is gross output less intermediate input. Gross output for Professional, Scientific and Technical Activities 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; payouts and other expense.


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

 

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