TABLE A Comparative Summary Statistics for Other Service Establishments with Total Employment of 20 and Over: Philippines, 2017 and 2016
Personal services for wellness, except sports activities industry dominates the sector in terms of number of establishments
The preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) showed that 429 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in other service activities in 2017. This number represents an increase of 2.6 percent compared with the 418 establishments reported in 2016.
Majority of the establishments were engaged in personal services for wellness, except sports activities with 312 establishments or 72.7 percent of the total. This was followed by repair of personal and household goods with 47 establishments or 11.0 percent. Funeral and related activities ranked third with 31 establishments or 7.2 percent.
Figure 1 displays the percentage distribution of the number of establishments with TE of 20 and over for other service activities sector by industry group in 2017.
Among the regions, the National Capital Region (NCR) had the highest number of establishments with 263 or 61.3 percent of the total. Central Visayas and CALABARZON placed second and third with 49 establishments (11.4%) and 40 establishments (9.3%), respectively.
Personal services for wellness, except sports activities industry employs the highest number of workers
The total employment of the sector for establishments with TE of 20 and over was recorded at 15,677 workers in 2017. Almost 95.5 percent of the total employment were paid employees and the rest were working owners and unpaid workers. Compared with the 2016 total employment of 14,515, an increase of 8.0 percent was noted in the 2017 total employment.
By industry group, personal services for wellness, except sports activities employed 9,142 workers or 58.3 percent of the total. Repair of personal and household goods followed with 1,948 workers (12.4%) and laundry services with 1,845 workers (11.8%).
Figure 2 shows the distribution of employment for establishments with TE of 20 and over for the sector by industry group in 2017.
At the regional level, NCR employed the highest number of workers of 9,318 or more than half (59.4%) of the total. This was followed by CALABARZON and Central Visayas with 2,112 workers (13.5%) and 2,061 workers (13.1%), respectively.
Meanwhile, the average number of workers for the sector was recorded at 37 per establishment. Repair of computers and communications equipment posted the highest average of 114 workers per establishment followed by laundry services with 92 workers per establishment. On the other hand, other personal service activities, n.e.c. recorded the lowest average of 23 workers per establishment.
Repair of computers and communications equipment industry pays the highest average annual compensation
The total compensation paid by the sector for establishments with TE of 20 and over reached PHP2.7 billion in 2017. This translates to an average annual compensation of PHP177.7 thousand per paid employee. Compared with the average annual pay of PHP181.6 thousand per paid employee in 2016, the average annual pay in 2017 was lower by 2.2 percent.
Among the industries, repair of computers and communications equipment paid the highest average annual compensation of PHP441.2 thousand per paid employee.
Completing the top three industries with highest average annual compensation in 2017 were other personal service activities, n.e.c. with PHP215.3 thousand per paid employee and funeral and related activities with PHP204.6 thousand per paid employee.
Figure 3 displays the average annual compensation of paid employees for establishments with TE of 20 and over for the sector by industry group in 2017.
By region, establishments with TE of 20 and over in Central Visayas paid the highest average annual compensation of PHP292.8 thousand per paid employee while Western Visayas recorded the lowest at PHP81.2 thousand per paid employee.
Personal services for wellness, except sports activities industry generates the highest income and expense
In 2017, the total income generated by establishments with TE of 20 and over reached PHP12.3 billion, a decrease of 9.8 percent compared with the 2016 total income of PHP13.6 billion. Personal services for wellness, except sports activities had the biggest share of PHP5.4 billion or 43.7 percent of the total income for the sector.
At the regional level, establishments in NCR generated the highest income of PHP7.8 billion or 64.0 percent of the total. Central Visayas and CALABARZON followed with income amounting to PHP1.9 billion (15.3%) and PHP1.8 billion (14.3%), respectively.
On the other hand, the total expense incurred by the sector for establishments with TE of 20 and over amounted to PHP11.2 billion in 2017, a 7.8 percent decrease from the 2016 reported total expense of PHP12.1 billion.
Industry-wise, personal services for wellness, except sports activities incurred the highest expense of PHP5.0 billion or 44.6 percent of the total. On the contrary, other personal service activities, n.e.c. recorded the least expense of PHP70.4 million or 0.6 percent.
The top three regions in terms of income were also the top spending regions in 2017. NCR incurred the highest expense amounting to PHP7.3 billion (65.4%),
The income generated per peso expense for establishments with TE of 20 and over by the sector stood at 1.10. This means that for every peso spent in the operation of the business, a PHP1.10 income was generated.
By industry, repair of computers and communications equipment, and funeral and related activities both recorded the highest income per peso expense of 1.12. The other industry with recorded income per peso expense of more than the national ratio was repair of personal and household goods with income per peso expense of 1.11.
By region, Ilocos Region recorded the highest income per peso expense of 1.51.
Value added amounts to PHP4.6 billion in 2017
The total value added of other service establishments with TE of 20 and over was estimated at PHP4.6 billion in 2017, an 8.1 percent decline from the PHP5.0 billion value added recorded in 2016.
The top three contributors to the total value added of the sector were the following:
- Personal services for wellness, except sports activities, PHP1.9 billion (41.2%)
- Repair of computers and communications equipment, PHP1.1 billion (23.2%)
- Repair of personal and household goods, PHP543.5 million (11.9%)
Labor productivity which is the ratio of value added to employment, was estimated at PHP292.3 thousand per worker. This figure was lower by 14.9 percent compared with the PHP343.3 thousand value added per worker in 2016. Repair of computers and communications equipment led the sector with a labor productivity of PHP663.9 thousand per worker. On the other hand, personal services for wellness, except sports activities registered the lowest labor productivity of PHP206.6 thousand per worker.
Figure 4 shows the distribution of labor productivity of other service establishments with TE of 20 and over by industry group in 2017.
Among regions, Central Visayas posted the highest labor productivity of PHP438.6 thousand per worker, while Central Luzon had the least at PHP136.3 thousand per worker.
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for Other Service Activities sector for establishments with total employment of 20 and over.
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 in 2017.
The survey was conducted nationwide in 2018 with 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of survey returns in the provinces as well as in the online accomplishment of questionnaires through the PSA website.
Data are presented by industry group or 3-digit of the 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:
- 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 Work 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 total employment (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 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. 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 establishment is determined by its TE as of a 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 2017 was used for the 2017 ASPBI.
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,
s = denotes the non-certainty employment strata in TE 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 99for 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 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 20 and over)
The estimate of the total of a characteristic (X_cp) 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,..., 17 regions (geographic domains)
xcpj = value of the jth establishment 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) is 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
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)
The response rate for Other Service Activities establishments with TE of 20 and over was 93.0 percent (225 out of 242 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, three 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 on-line 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 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.
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 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 for the establishment as of 15 November 2017.
Value added is gross output less intermediate input. Gross output for Other Service Activities sector is the sum of income from service rendered, 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 for 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; and other expense.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.