2018 Census of Philippine Business and Industry: Economy-Wide

Reference Number: 

2020-143

Release Date: 

Monday, November 9, 2020

The three major economic sectors, namely: Agriculture, Industry, and Services comprise the 18 industry sections, which are grouped as follows:

I. Agriculture

A. Agriculture, forestry and fishing

II. Industry

B. Mining and quarrying
C. Manufacturing
D. Electricity, gas, steam and air conditioning supply
E. Water supply, sewerage, waste management and remediation activities
F. Construction

III. Services

G. Wholesale and retail trade; repair of motor vehicles and motorcycles
H. Transportation and storage
 I. Accommodation and food service activities
J. Information and communication
K. Financial and insurance activities
L. Real estate activities
M. Professional, Scientific and Technical Activities
N. Administrative and Support Service Activities
P. Education
Q. Human Health and Social Work Activities
R. Arts, entertainment and recreation
S. Other service activities

Number of Establishments increased by more than 50 percent from the last census

In 2018, the total number of establishments in the formal sector was 334,522. This is 52.6 percent higher than the 2012 count which was 219,184 establishments. (Table A)

Among the major economic sectors, the Services dominated the number of establishments with 298,021 which comprised 89.1 percent of the total. For the other major economic sectors, Industry with 33,216 establishments, and Agriculture with 3,285 establishments, shared the remaining 9.9 percent and 1.0 percent, respectively. (Table C, and Figure 1)

Figure 1

 

Four in every ten establishments were engaged in wholesale and retail trade; repair of motor vehicles and motorcycles

Among industry sections, wholesale and retail trade; repair of motor vehicles and motorcycles held the biggest share with 137,674 establishments or 41.2 percent of the total count in 2018. The second industry section with the highest count was the accommodation and food service activities with 44,487 establishments that comprised 13.3 percent. Financial and insurance activities section closely followed with 41,657 or 12.5 percent of the total number of establishments in 2018. (Table C, and Figure 2)

Mining and quarrying, electricity, gas, steam and air conditioning supply, water supply; sewerage, waste management and remediation activities and construction were the industry sections with small number of establishments, each with less than 1.0 percent contribution to the total. (Table C, and Figure 2)

Figure 2

Figure 2a

 

Establishments generated more than seven million employment in 2018

A 32.2 percent growth in total employment was recorded from 2012 to 2018. In 2018, establishments in the formal sector generated about 7.2 million employment. (Table A)

The distribution of total employment among the three major economic sectors shows that the Services sector generated the highest employment with about 5.3 million employees or 73.6 percent of the total. The Industry sector generated employment of more than 1.7 million (24.2%) while the Agriculture sector had nearly 155 thousand employment or 2.2 percent. (Table C, and Figure 1).

Administrative and support service activities generated the biggest share in total employment with more than 1.4 million (20.0%) employees in 2018, while wholesale and retail trade; repair of motor vehicles and motorcycles, also with more than 1.4 million employees, closely followed with 19.7 percent share to the total. (Table C, and Figure 3)

Manufacturing establishments had the next highest contribution to employment with around 1.3 million persons employed or 17.6 percent of the total. The least contributor was the mining and quarrying which generated less than 38 thousand employment or 0.5 percent of the total employment in 2018. (Table C, and Figure 3)

Figure 3

 

Employment per establishments declined in 2018

At the national level, the computed employment per establishment ratio decreased to 22 in 2018, from 25 in 2012. This means that, on the average, in 2018 each establishment had 22 employees.

At the industry section level, the administrative and support service activities, construction, and electricity, gas, steam and air conditioning supply sections had the highest computed ratio with 169, 140, and 137 employment per establishment, respectively. (Table B)

Notably, the three industry sections with the highest number of establishments, namely: wholesale and retail trade; repair of motor vehicles and motorcycles; accommodation and food service activities; and financial and insurance activities had relatively lower employment per establishment ratios of 11, 13 and 11, respectively. While, the mining and quarrying section with the least contribution to the total employment, had the fourth highest ratio with 136 employment per establishment. (Table B, Figures 2, and 3)

The other service activities section had the lowest ratio with seven employment per establishment. (Table B)

More than 50 percent of the workers on sub-contract agreement or under manpower agencies are in the Industry sector

A total of 778,600 workers on sub-contract agreement or under manpower agencies were engaged in 2018, of which 53.2 percent were in the industry major economic sector. The Services sector had 44.0 percent share while the Agriculture sector had about 2.7 percent share. (Table 1, and Figure 4)

Figure 4

 

Across industry section, the manufacturing sector had engaged the service of about 338 thousand sub-contracted workers to supplement their workforce, this is 43.4 percent of the total workers on sub-contract agreement or under manpower agencies. (Table 1)

Other industry sections with more than 10 percent share to the total number of workers on sub-contract agreement or under manpower agencies were wholesale and retail trade; repair of motor vehicles and motorcycles, and accommodation and food service activities with 13.8 percent, and 11.8 percent, respectively. (Table 1)

The 2018 total revenue, and total expense posted growth of more than 70 percent from the 2012 figures

The total revenue generated by the formal sector establishments in 2018 totaled to about PhP 24.3 trillion, with a growth of 73.8 percent from the 2012 figure. Comparatively, the total expense incurred in 2018 amounting to PhP 21.1 trillion, posted growth of 76.9 percent from 2012. (Table A)

The Services sector had the biggest share in total revenue among the three major economic sectors with more than PhP 16.0 trillion or 66.1 percent. This is almost double the share of the Industry sector with PhP 8.0 trillion or 33.0 percent. The Agriculture sector had about PhP 207.0 billion or 0.9 percent share. (Table C)

Similar distribution of shares, in terms of total expense incurred, was observed for the three major economic sectors. Services sector had the highest share of PhP 13.9 trillion (65.3%), followed by industry sector with PhP 7.1 trillion (33.8%), and Agriculture sector with PhP 194.3 billion (0.9%) shares to the total. (Table C)

Wholesale and retail trade; repair of motor vehicles and motorcycles lead the revenue generation, and also on top in terms of expense incurred

Wholesale and retail trade; repair of motor vehicles and motorcycles led the other sections in terms of revenue generation with a share of PhP 8.6 trillion or 35.3 percent of the total. This section also had the highest expense incurred with PhP 8.0 trillion comprising 37.9 percent of the total expense incurred by all industry sections. (Table C, and Figure 5)

Next to the top was the manufacturing industry section with PhP 5.8 trillion (23.8%) revenue generated, and PhP 5.3 trillion (24.9%) total expense incurred. (Table C, and Figure 5)

At the national level, the revenue per expense ratio was computed at 1.15. This indicates that an establishment earned, on the average, 15 centavos for every peso spent in 2018. The highest ratio was computed for real estate activities at 1.59 followed by financial and insurance activities, and water supply; sewerage, waste management and remediation activities at 1.38 and 1.30, respectively. (Table B)

Figure 5

 

Total compensation paid to employees reached PhP 2.2 trillion

From the total expense incurred in 2018, 10.4 percent or more than PhP 2.2 trillion was spent for employee’s compensation.

Across industry sections, administrative and support service activities, and education both spent a big portion of their expense for compensation which were computed as 61.8 percent, and 50.1 percent, respectively. (Table 1)

A quarter of the total estimated value added was from manufacturing

The total value-added of the formal sector in 2018 was estimated at PhP 7.3 trillion, which is 87.2 percent higher compared to the 2012 figure. (Table A)

Among the major economic sectors, Services had the highest value added which was estimated at PhP 4.6 trillion. This comprised 62.7 percent of the total for all sectors. The value added for the Industry, and Agriculture major economic sectors were estimated at PhP 2.7 trillion (36.5%), and PhP 56.4 million (0.8%), respectively. (Table C)

The manufacturing section had an estimated PhP 1.9 trillion value added which comprised 25.9 percent of the total for all sections. This was the highest among industry sections. (Table C, and Figure 6)

Figure 6

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

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