TABLE A. Comparative Summary Statistics for Water Supply; Sewerage, Waste Management and Remediation Activities Sector for Establishments with Total Employment of 20 and Over: Philippines, 2017 and 2016
Water collection, treatment and supply industry dominates the sector
The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that there were a total of 354 establishments that were engaged in Water Supply; Sewerage, Waste Management and Remediation Activities and with a total employment (TE) of 20 and over in the formal sector of the economy. This number represents a decrease of 0.6 percent for 2017 compared with the 356 total establishments in 2016.
Among the industries, water collection, treatment and supply dominated with 313 establishments or 88.4 percent of the total establishments for the sector. This was followed by materials recovery with 13 establishments or 3.7 percent. Water treatment and disposal placed third with 11 establishments or 3.1 percent. The lowest count was recorded in sewerage with seven establishments or 2.0 percent.
Figure 1 shows the distribution of establishments with TE of 20 and over for Water Supply; Sewerage, Waste Management and Remediation Activities sector by industry group in 2017
Among regions, Central Luzon reported the most number of establishments with 71 (20.1%). CALABARZON and National Capital Region (NCR) placed second and third with 60 establishments (16.9%) and 28 establishments (7.9%), respectively. On the other hand, Cordillera Administrative Region (CAR) recorded the lowest count with four establishments (1.1%).
Water collection, treatment and supply industry employs the highest number of workers
Total employment for the sector with TE of 20 and over reached 31,070 workers, an increase of 4.0 percent compared with the 29,874 workers in 2016. Almost all or 30,061 (99.9%) workers were paid employees and the rest were working owners or unpaid workers.
At the industry level, water collection, treatment and supply, which recorded the highest number of establishments in 2017, was also the top industry in terms of number of workers. It recorded a total of 28,530 workers or 91.8 percent of the total workers for the sector. Waste collection followed with 892 workers (2.9%). Sewerage ranked third with 664 workers or 2.1 percent of the total employment. Materials recovery had the lowest number of workers with 433 or 1.4 percent of the total employment.
Figure 2 shows the distribution of employment for Water Supply; Sewerage, Waste Management and Remediation Activities sector for establishments with TE of 20 and over by industry group in 2017.
Among the regions, NCR employed the highest number of workers with 6,327 or 20.4 percent of the total, followed by CALABARZON with 5,243 (16.9%) workers. Completing the top three regions with the most number of workers was Central Luzon with 4,376 (14.1%) workers.
The average number of workers per establishment for the sector was recorded at 88. Among the industries, sewerage reported the highest average number of workers at 95 per establishment. Water collection, treatment and supply, and waste collection followed with average number of workers per establishment of 91 and 89, respectively.
Employees of water collection, treatment and supply industry are paid the highest
In 2017, the total compensation paid to employees of the sector for establishments with TE of 20 and over amounted to PHP13.5 billion, which translates to an average annual compensation of PHP434,793 per paid employee. Compared with the average annual pay of PHP403,492 per paid employee in 2016, the average pay in 2017 increased by 7.8 percent.
Among the industries, water collection, treatment and supply paid the highest average annual compensation of PHP451,081 per paid employee in 2017. This was followed by waste treatment and disposal with average annual pay of PHP323,203 per paid employee. On the other hand, employees in sewerage received the lowest annual pay of PHP172,846 per paid employee.
Figure 3 shows the average annual compensation of employees for Water Supply; Sewerage, Waste Management and Remediation Activities sector for establishments with TE of 20 and over by industry group in 2017.
At the regional level, employees in NCR received the highest average annual pay of PHP854,373. This was followed by employees in MIMAROPA Region and Central Visayas with an average annual compensation for paid employees of PHP382,162 and PHP380,615, respectively. Meanwhile, employees in Autonomous Region in Muslim Mindanao (ARMM) received the lowest average annual compensation for paid employees of PHP207,157.
Value of output of the sector reaches PHP74.1 billion
Total value of output generated by establishments with TE of 20 and over was estimated at PHP74.1 billion in 2017, a decline of 2.2 percent compared with the PHP75.8 billion reported in 2016.
Among industry, water collection, treatment and supply industry, which produced PHP67.0 billion in 2017, accounted for the biggest share of 90.4 percent of the total value of output. Waste collection with PHP3.0 billion (4.0%) and materials recovery with PHP2.0 billion (2.7%) followed.
Figure 4 shows the distribution of value of output for Water Supply; Sewerage, Waste Management and Remediation Activities sector for establishments with TE of 20 and over by industry group in 2017.
Among regions, NCR shared the biggest output value which was estimated at PHP38.9 billion or more than half (52.5%) of the total value of output of the sector. This was followed by Central Luzon and CALABARZON with respective output values of PHP8.8 billion (11.9%) and PHP7.8 billion (10.5%).
Total expense of the sector amounts to PHP78.0 billion
Total expense, which includes compensation, amounted to PHP78.0 billion in 2017. It registered a 13.4 percent increase compared with the reported expense of PHP68.8 billion in 2016.
Among industries, water collection, treatment and supply incurred the highest expense amounting to PHP71.7 billion or 91.9 percent of the total expense. Waste collection and materials recovery followed with total expenses of PHP2.8 billion (3.5%) and PHP1.9 billion (2.4%), respectively.
At the regional level, more than half (61.8%) or PHP48.2 billion of the sector’s total expense was incurred by establishments in NCR, the highest among the regions. CALABARZON and Central Luzon placed second and third spending PHP7.7 billion (9.9%) and PHP7.1 billion (9.1%), respectively.
Sewerage industry records the highest return
The income generated per peso expense of establishments with TE of 20 and over for the sector stood at 1.33, slightly lower by 0.7 percent from the income per peso expense ratio of 1.34 in 2016. Industries that surpassed the sector’s income per peso expense ratio were sewerage; and water collection, treatment and supply with income-expense ratio of 2.31 and 1.35, respectively.
The income-expense ratios of other industries in 2017 were as follows:
- Waste collection, 1.15
- Materials recovery, 1.14
- Waste treatment and disposal, 1.03
Among regions, Northern Mindanao registered the highest return with income per peso expense ratio of 1.63. Davao Region and MIMAROPA Region followed with 1.48 and 1.43 income per peso expense, respectively.
Value added of the sector stands at PHP24.7 billion
Value added generated by establishments with TE of 20 and over reached PHP24.7 billion in 2017, a decrease of 26.4 percent compared with the PHP 33.6 billion reported value added in 2016.
The top three contributors to the total value added of the sector were the following industries:
- Water collection, treatment and supply, PHP22.6 billion (91.3%)
- Sewerage, PHP0.7 billion (2.7%)
- Waste collection, PHP0.6 billion (2.5%)
At the regional level, NCR and Central Luzon led the regions in terms of value added, generating PHP5.0 billion each (20.1%). CALABARZON came third with PHP3.3 billion or 13.2 percent of the total value added.
Labor productivity of the sector amounts to PHP795.2 thousand per worker
Labor productivity, which is the ratio of value added to employment, was estimated at PHP795.2 thousand per worker. This figure was lower by 29.3 percent than the PHP1,124.2 thousand labor productivity in 2016.
In 2017, materials recovery recorded the highest labor productivity of PHP1.3 million per worker. On the other hand, water treatment and disposal registered the lowest labor productivity of PHP515.8 thousand per worker.
Figure 5 shows the distribution of labor productivity for Water Supply; Sewerage, Waste Management and Remediation Activities sector for establishments with TE of 20 and over by industry group in 2017.
Region-wise, Central Luzon, MIMAROPA Region, and Davao Region were the three most productive, each with a PHP1.1 million value added per worker.
No reported sales from e-commerce in 2017
In 2017 and 2016, there were no reported sales from e-commerce transactions of establishments with TE of 20 and over.
(Sgd.) VIVIAN R. ILARINA
Assistant National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 ASPBI for the Water Supply; Sewerage, Waste Management and Remediation Activities sector (Sector E) for establishments 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 in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
Establishment Data Management System (EDMS) is still utilized in the decentralized processing of survey returns 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.
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:
o Agriculture, Forestry and Fishing (A)
o Mining and Quarrying (B)
o Manufacturing (C)
o Electricity, Gas, Steam, and Air Conditioning Supply (D)
o Water Supply; Sewerage, Waste Management and Remediation Activities (E)
o Construction (F)
o Wholesale and Retail Trade; Repair of Motor Vehicles, and Motorcycles (G)
o Transportation and Storage (H)
o Accommodation and Food Service Activities (I)
o Information and Communication (J)
o Financial and Insurance Activities (K)
o Real Estate Activities (L)
o Professional, Scientific and Technical Activities (M)
o Administrative and Support Service Activities (N)
o Education (P)
o Human Health and Social Work Activities (Q)
o Arts, Entertainment and Recreation (R)
o Other Service Activities (S)
The survey was confined to the formal sector of the economy, which consists of the following:
o Corporations and partnership
o Cooperatives and foundations
o Single proprietorship with employment of 10 and over
o Single proprietorships with branches
Hence, the 2016 ASPBI covered only the following economic units:
o All establishments with total employment (TE) of 10 or more; and
o 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.
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 was utilized to classify economic units according to their economic activities.
Size of an establishment is determined by its total employment (TE) as of specific date. 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 2015 was used for the 2016 ASPBI.
Selection of sample establishment for the 2017 ASPBI was done using 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
- Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) Sections A, C, E, F G, H, I, K, L, M, N, P, Q, R and S.
The estimate of the total of a characteristic for the non-certainty employment strata in an industry domain in each region,
s denotes the non-certainty employment strata of TE 20 to 49 and TE 50 to 99
p = 1, 2,..., 18 regions (geographic domains)
xspj = value of the jth establishment in the non-certainty employment strata in TE of 20 and over 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 of 20 and over for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region
- Certainty Stratum (TE 100 and over) (Establishments under the following: Section B, D and J, ICT core industries, BPM industries, GOCCs and with TE 100 and over)
The total of a characteristic (Xcp) for the certainty employment stratum in an industry domain in each region,
c denotes the certainty employment strata in TE of 20 and over
p = 1, 2,..., 18 regions (geographic domains)
xcpj = value of the jth establishment in the certainty employment strata in TE of 20 and over in 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
- 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 dp denotes the industry domains in each 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
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 for Water Supply; Sewerage, Waste Management and Remediation Activities sector for establishments with TE of 20 and over was 85.5 percent (313 out of 366 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out of scope establishments.
Of the total responses, 23 establishments responded online.
Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out of scope and out of business in 2017.
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 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.
Expense refers to cost incurred in an enterprise effort to generate revenue, representing the cost of doing business. This is treated on a consumed basis. It excludes cost incurred in the acquisition of income generating assets.
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 used; fuels, lubricants, oils and greases used; electricity and water purchased, and industrial services done by others.
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 or for the establishment as of 15 November 2017.
Value added is gross output less intermediate input. Gross output for the water supply; sewerage, waste management and remediation activities 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 all other expenses.
Value of output represents the sum of the receipts from revenue from main activity, income from industrial services done for others, goods sold in the same condition as purchased less the cost of goods sold and value of fixed assets produced on own account.