2020 Annual Survey of Philippine Business and Industry (ASPBI) - Other Service Activities Sector: Preliminary Results

Reference Number: 

2022-460

Release Date: 

Tuesday, November 22, 2022

Table A. Comparative Summary Statistics for Other Service Activities Sector: Philippines, 2019 and 2020

Personal services for wellness, except sports activities industry dominates the sector in terms of number of establishments

The preliminary results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 9,069 establishments in the formal sector of the economy were engaged in other service activities in 2020. This number represents a decrease of 9.8 percent compared with the 10,049 establishments reported in 2019. (Tables A and 1, and Figure 1)

Majority of the establishments were engaged in personal services for wellness, except sports activities with 4,614 establishments or 50.9 percent of the total. Laundry services ranked second with  1,892 establishments or 20.9 percent. Funeral and related activities ranked third with 1,189 establishments or 13.1 percent. (Table 1 and Figure 1)

Figure 1.  Percentage Distribution of Other Service Activities Sector by Industry Group: Philippines, 2020

Among the regions, the National Capital Region (NCR) had the highest number of establishments with 2,816 or 31.1 percent of the total. CALABARZON and Central Luzon placed second and third with 1,421 establishments (15.7%) and 827 establishments (9.1%), respectively. (Table 3)

Personal services for wellness, except sports activities industry employed the highest number of workers

The sector employed a total of 56,979 workers in 2020. Of the total, 55,144 (96.8%) were paid employees while the rest were working owners and unpaid workers. Compared with the total employment of 82,700 in 2019, total employment in 2020 decreased by 31.1 percent. (Tables A and 1)

By industry group, personal services for wellness, except sports activities employed the highest number of 33,349 workers or 58.5 percent of the total. Funeral and related activities followed with 9,409 workers (16.5%) and repair of personal and household goods with 6,354 workers (11.2%). (Table 1 and Figure 2)

Figure 2. Distribution of Employment for Other Service Activities by Industry Group: Philippines, 2020

At the regional level, NCR employed the highest number of workers of 19,277 or 33.8 percent of the total. This was followed by CALABARZON and Central Visayas with 9,415 workers (16.5%) and 5,378 workers (9.4%), respectively. (Table 3)

Meanwhile, the average number of workers for the sector was recorded at six workers per establishment. Funeral and related activities posted the highest average of eight workers per establishment, followed by personal services for wellness, except sports activities with seven workers per establishment. On the other hand, laundry services recorded the lowest average of three workers per establishment. (Table 2)

Repair of computers and communications equipment industry pays the highest average annual compensation

The total compensation paid by the sector for establishments engaged in other service activities reached PhP 5.00 billion in 2020. This translates to an average annual compensation of PhP 90.74 thousand per paid employee. Compared with the average annual pay of PhP 128.38 thousand per paid employee in 2019, the average annual pay in 2020 decreased by 29.3 percent. (Tables A, 1 and 2)

Among the industry groups, repair of computers and communications equipment paid the highest average annual compensation of PhP 152.61 thousand per paid employee. (Table 2 and Figure 3)

Completing the top three industry groups with high average annual compensation in 2020 were funeral and related activities with PhP 138.99 thousand per paid employee and personal services for wellness, except sport activities with PhP 80.61 thousand per paid employee. (Table 2 and Figure 3)

Figure 3. Average Annual Compensation of Paid Employees for Other Service Activities Sector by Industry Group: Philippines, 2020

By region, establishments in Central Visayas paid the highest average annual compensation of PhP 155.52 thousand per paid employee, while Autonomous Region in Muslim Mindanao (ARMM) recorded the lowest at PhP 33.88 thousand per paid employee. (Table 4)

Funeral and related activities industry generated the highest revenue and expense

In 2020, the total revenue generated by the sector reached PhP 18.23 billion, a decrease of 63.2 percent compared with the total revenue of PhP 49.49 billion in 2019. Funeral and related activities had the biggest share of PhP 6.56 billion or 36.0 percent to the total revenue. (Tables A and 1, Figure 4)

At the regional level, establishments in NCR generated the highest revenue of PhP 4.53 billion or 24.8 percent of the total. CALABARZON and Central Visayas followed with revenue amounting to PhP 3.49 billion (19.2%) and PhP 2.71 billion (14.8%), respectively. (Table 3)

On the other hand, the total expense incurred by the sector amounted to PhP 16.85 billion in 2020, a 61.2 percent decrease from the reported total expense of PhP 43.39 billion in 2019. (Table A)

Among the industry groups, personal services for wellness, except sports activities incurred the highest expense of PhP 6.93 billion or 41.1 percent to the total. On the contrary, other personal service activities, n.e.c. recorded the least expense of PhP 149.13 million or 0.9 percent. (Table 1 and Figure 4)

The top three regions in terms of revenue were also the top spending regions in 2020. NCR incurred the highest expense amounting to PhP 4.63 billion (27.5%). (Table 3)

Figure 4. Revenue and Expense for Other Service Activities Sector by Industry Group: Philippines, 2020

The revenue per peso expense ratio for the sector stood at 1.08 in 2020. This means that for every peso spent by the sector in the operation of its business, a corresponding revenue of PhP 1.08 was generated. (Tables A and 2)

By industry group, repair of computers and communications equipment, generated the highest revenue per peso expense ratio of 1.23, followed by repair of personal and household goods with a ratio of 1.22. Another industry with recorded revenue per peso expense ratio of more than the national level was funeral and related activities with a ratio of 1.20. (Table 2)

By region, Northern Mindanao recorded the highest revenue per peso expense of 1.47. (Table 4)

 

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


 

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) for Other Service Activities establishments (Sector S).

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 2020.

The conduct of the 2020 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 2021 with the year 2020 as the reference period, except for employment whose reference period is as of 15 November 2020.

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

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

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 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 a single establishment, branch, establishment and main office with branches elsewhere, main office only, or an ancillary unit other than the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be a 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 Series of 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 2020 was used for the 2020 ASPBI.

IV. Scope and Coverage

The 2020 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 2020 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 2020 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 2020 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 2020 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2020 ASPBI was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021.  This frame was used to draw the sample establishments for the survey. The preliminary 2020 LE showed that there were 1,000,440 establishments in operation in the country of which 336,205 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2020 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 industryvstratum 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:

= 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 Other Service Activities sector was 98.2 percent (1,127 out of 1,148 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, 36 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 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 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.

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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