2019 Annual Survey of Philippine Business and Industry (ASPBI) - Professional, Scientific and Technical Activities Sector: Preliminary Results

Reference Number: 

2022-71

Release Date: 

Friday, February 18, 2022

TABLE A.Summary Statistics for Professional, Scientific and Technical Activities Sector: Philippines, 2019

Legal activities industry group had the highest number of establishments

The preliminary results of the 2019 Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 5,435 establishments in the formal sector of the economy were engaged in professional, scientific, and technical activities. (Tables A and 1)

Among the industry groups, legal activities led the sector with1,032 establishments or 19.0 percent of the total. This was followed by photographic activities and management consultancy activities with 912 establishments (16.8%) and 722 establishments (13.3%), respectively. (Table 1and Figure 1)

Figure 1. Percentage Distribution of Professional, Scientific and Technical Activities Sectorby Industry Group: Philippines, 2019

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

The professional, scientific, and technical activities sector employed 164,793 workers in 2019. Of the total, 163,959 (99.5%) were paid employees, while the rest  were working owners and unpaid workers. (Tables A and 1, Figure 1)

Among the industry groups, architectural and engineering activities and related technical consultancy had the highest employed workers with 38,554 workers (23.4%). This was followed by accounting, bookkeeping and auditing activities; tax consultancy with 30,355 workers (18.4%). Management consultancy activities came in third with 26,025 workers (15.8%). (Table 1 and Figure 2)

Figure 2.  Distribution of Employment for Professional, Scientific and Technical Activities Sector by Industry Group: Philippines, 2019

The sector recorded an average number of 30 workers per establishment in 2019. (Tables A and 2)

Research and experimental development in information technology activities recorded the highest average of 177 workers per establishment. On the other hand, veterinary activities recorded the lowest average of 8 workers per establishment. (Table 2)

The average annual compensation of the sector was PhP 425.44 thousand per paid employee

Professional, Scientific and Technical Activities sector paid a total compensation of PhP 69.75 billion in 2019 This amount translates to an average annual compensation of PhP 425.44 thousand per paid employee. (Tables A, 1 and 2)

Among the industry groups, activities of head offices paid the highest average annual compensation of PhP 980.95 thousand per paid employee. Research and experimental development in information technology followed with PhP 663.62 thousand, while management consultancy activities came in third with PhP 660.61 thousand. (Table 2 and Figure 3)

Figure 3. Average Annual Compensation of Paid Employees for TopFive Industries of Professional, Scientific and Technical Activities Sector by Industry Group: Philippines, 2019

Activities of the head offices industry group contributed the highest total revenue and expense

The total revenue generated by the sector for 2019 reached a total of PhP 279.86 billion. On the other hand, total expense incurred by the sector amounted to PhP 247.64 billion. (Tables A and 1, Figure 4)

The top three industry groups in terms of revenue and expense for the sector were as follows:

  •  Activities of head offices shared the highest total revenue and expense of PhP 60.82 billion(21.7%) and PhP 60.44 billion (24.4%), respectively;
  •  Architectural and engineering activities and related technical consultancy with revenue amounting to PhP 54.52 billion (19.5%) and expense of PhP 48.70 billion or (19.7%); and
  •  Management consultancy activities with revenue and expense of PhP 39.25billion (14.0%) and PhP 33.45 billion or (13.5%), respectively.(Table 1 and Figure 4)

Figure 4. Revenue and Expense for Top Five Industries of Professional, Scientific and Technical Activities Sector by Industry Group: Philippines, 2019

The revenue per peso expense ratio computed for the sector was 1.13. (Tables A and 2)

Among industry groups, legal activities recorded the highest revenue per peso expense of 1.67. On the contrary, research and experimental development on social sciences and humanities had the lowest at 0.76. (Table 2)

Government provided PhP467.39 million subsidies

Total subsidies granted by the government for the sector amounted to PhP 467.39 million in 2019. The largest amount was granted to research and experimental development on social sciences and humanities amounting to PhP458.51 million (98.1%). (Table 1)

 

(Sgd.) DENNIS S. MAPA, Ph. D
Undersecretary
National Statistician and Civil Registrar General
Philippine Statistics Authority


 

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the 2019 Annual Survey of Philippine Business and Industry (ASPBI) for Professional, Scientific and Technical Activities establishments (Sector M).

The 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 2019.

The conduct of the 2019 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.

II.  Data collection and Processing

The survey was conducted nationwide in 2020 with the year 2019 as the reference period, except for employment whose reference period is as of 15 November 2019.

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

a. online questionnaire available at https://aspbi.psa.gov.ph;
b. electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and
c. printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2019 ASPBI questionnaires in the provinces.

Data are presented by industry group or 3-digit classification as classified under the 2009 Philippine Standard Industrial Classification (PSIC).

III. Taxonomy of Establishments

An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of economic activity at a single fixed location.

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, or an 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, or 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 PSA Resolution No. 01 Seriesof 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment as of the time of visit during the latest Updating of the List of Establishments.

Total Employment (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. Also included 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 2019 was used for the 2019 ASPBI.

IV. Scope and Coverage

The 2019 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

1. Agriculture, Forestry and Fishing (A)
2. Mining and Quarrying (B)
3. Manufacturing (C)
4. Electricity, Gas, Steam, and Air Conditioning Supply (D)
5. Water Supply; Sewerage, Waste Management and Remediation Activities (E)
6. Construction (F)
7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)
8. Transportation and Storage (H)
9. Accommodation and Food Service Activities (I)
10. Information and Communication (J)
11. Financial and Insurance Activities (K)
12. Real Estate Activities (L)
13. Professional, Scientific and Technical Activities (M)
14. Administrative and Support Service Activities (N)
15. Education (P)
16. Human Health and Social Work Activities (Q)
17. Arts, Entertainment and Recreation (R)
18. Other Service Activities (S)

The survey was confined to the formal sector of the economy, which consists of the following:

1. Corporations and partnership
2. Cooperatives and foundations
3. Single proprietorship with employment of 10 and over
4. Single proprietorships with branches

Hence, the 2019 ASPBI covered only the following economic units:

1. All establishments with total employment (TE) of 10 or more; and
2. 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.

V. Sampling Design

The 2019 ASPBI uses stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the sector, and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases precision of “overall” survey estimates.

Domain

The geographic domain of the 2019 ASPBI is region. The industry domain/stratum is 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification.

Unit of Enumeration

The unit of enumeration for the 2019 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2019 ASPBI was extracted from the preliminary 2019 List of Establishments (LE) as of 05 February 2020.  This frame was used to draw the sample establishments for the survey. The preliminary 2019 LE showed that there were 1,000,524 establishments in operation in the country of which 336,712 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2019 ASPBI.

Estimation Procedure

1) Estimation of Survey Weights

Base Weight

The base weight is the inverse of the probability of selection.  For the ASPBI, the base weight for each domain is given by:

where:

whk  = weight of the kth establishment in the hth stratum
Nh   = total no. of establishments in the hth stratum
nh   = total no. of sample establishments in the hth stratum
h     = refers to the industry-employment stratum

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:

where:

As   = adjustment factor for industry domain s
X1k = eligibility status of the kth sample establishment (1 if eligible, 0 otherwise)
X2k = responding status of the kth sample establishment (1 if responding, 0 otherwise)

Final Weight

The final weight is the product of the base weight and adjustment factor.  That is,

where:

w'hk  = final weight of the kth sample establishment in stratum h
whk  = weight of the kth establishment in the hth stratum
As    = adjustment factor for industry domain s

2) Estimation of Total

Total by Industry-Employment Stratum

The estimator for the total of a characteristic in each industry-employment stratum in a region (geographic domain) is given by:

where:

yhk  = value of the kth sample establishment in stratum h
w’hk = final weight of the kth sample establishment in stratum h

Total by Industry Stratum and Domain

The estimator for the total of a characteristic in each industry stratum in each regional domain is given by:

where:

hi = number of employment strata for industry stratum i

Total by Employment Stratum and Domain

The estimator for the total of a characteristic in each employment stratum in each regional domain is given by:

where:

hj  = number of industry strata for employment stratum j
r   = subscript for geographic domain r

Total by Geographic Domain

The estimator for the total of a characteristic in each geographic domain is given by:

where:

I  = total number of industry strata in geographic domain r
J = total number of employment strata in geographic domain r

Total by Industry Stratum (National)

The estimator for the national total of a characteristic in each industry domain/stratum is given by:

where:

R = total number of regions

Total by Employment Stratum (National)

The estimator for the national total of a characteristic in each employment domain/stratum is given by:

National Total

The estimator for the national total of a characteristic is given by:

VI. Response Rate

Response rate for all Professional, Scientific and Technical Activities sector was 83.2 percent (974 out of 1,170 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out-of-scope establishments.

Of the total responses, 53 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2019 were not included in the generation of statistical tables.

VII. Concepts and Definitions of Terms

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

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 is the 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.

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.

Revenue is the cash received and receivable 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.

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 special grants in the form of financial assistance or tax exemption, or tax privilege given by the government to aid and develop an industry.


 

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