TABLE A Comparative Summary Statistics for All Professional, Scientific and Technical Establishments: Philippines, 2017 and 2016
Photographic activities industry has the highest number of establishments
The final results of the Annual Survey of Philippine Business and Industry (ASPBI) showed that a total of 6,398 establishments in the formal sector of the economy were engaged in professional, scientific and technical activities in 2017. This represents a decrease of 9.2 percent compared with the 7,048 establishments recorded in 2016.
Among the industry groups, photographic activities recorded the highest number of establishments of 1,426 or 22.3 percent of the total. This was followed by legal activities with 1,168 establishments (18.3%).
The percentage distribution of all professional, scientific and technical establishments by industry group is illustrated in Figure 1.
Architectural and engineering activities and related technical consultancy industry employs the highest number of workers
The sector employed a total of 158,508 workers in 2017, an increase of 1.2 percent compared with the 156,559 workers in 2016. Of the total employment, 99.2 percent were paid employees and the rest were working owners and unpaid workers.
By industry group, architectural and engineering activities and related technical consultancy employed the highest number of workers of 34,549 or 21.8 percent of the total. This was followed by management consultancy activities with 29,340 workers (18.5%); and accounting, bookkeeping and auditing activities; tax consultancy with 20,344 workers (12.8%).
The distribution of employment for all establishments of the sector by industry group is illustrated in Figure 2.
The sector’s average number of workers was recorded at 25 per establishment in 2017, higher by 11.5 percent compared with the 22 workers per establishment recorded in 2016. Research and experimental development in information technology recorded the highest average number of 141 workers per establishment. On the other hand, photographic activities recorded the lowest average number of five workers per establishment.
Average annual compensation continue to increase at 4.4 percent
In 2017, a total compensation of PHP82.4 billion was paid to all employees of the sector. This translates to an average annual compensation of PHP524.0 thousand per employee. Compared with the average annual pay of PHP501.7 thousand in 2016, this was higher by 4.4 percent.
Among the industry groups, activities of head offices paid the highest average annual compensation of PHP980.4 thousand per employee. This was followed by management consultancy activities, and research and experimental development in information technology with an average annual compensation of PHP871.2 thousand and PHP746.4 thousand per employee, respectively.
Figure 3 shows the average annual compensation of employees for the top five industries of the sector in 2017.
Activities of head offices industry contributes the highest to total income and total expense
The total income generated by the sector for all establishments amounted to PHP305.7 billion in 2017, a decrease of 1.1 percent compared with the PHP309.2 billion income in 2016. On the other hand, the total expense incurred by the sector reached PHP259.8 billion, higher by 4.2 percent from the PHP249.3 billion total expense in 2016.
Among the industry groups, activities of head offices shared the highest to the total income and total expense amounting to PHP76.3 billion (25.0%) and PHP72.1 billion (27.7%), respectively. On the contrary, veterinary activities had the least contribution of PHP728.6 million to the total income, while specialized design activities had the least share of PHP533.9 million to total expense.
Figure 4 shows the income and expense of the top five industries of the sector in 2017.
Meanwhile, the income per peso expense generated by the sector for all establishments stood at 1.18. This reflects a decrease of 5.1 percent compared with the income per peso expense of 1.24 in 2016. Among the industry groups, legal activities recorded the highest income per peso expense of 1.52.
Value added amounts to PHP 160.2 billion
The total value added generated by the sector for all establishments was estimated at PHP160.2 billion in 2017. This indicates a decrement of 11.4 percent compared with the PHP180.8 billion value added in 2016.
The top three contributors to the total value added of the sector were the following:
- management consultancy activities, PHP37.4 billion (23.3%);
- activities of head offices, PHP36.5 billion (22.8%); and
- architectural and engineering activities and related technical consultancy, PHP31.3 billion (19.5%).
Labor productivity, which is the ratio of value added to total employment, was estimated at PHP1,010.8 thousand per worker in 2017. This was 12.5 percent lower than the reported PHP1,155.0 thousand labor productivity in 2016.
Among the industry groups, activities of head offices had the highest labor productivity of PHP4,974.4 thousand per worker. This was followed by management consultancy activities with labor productivity of PHP1,274.2 thousand per worker.
Figure 5 shows the labor productivity of the top five industries of the sector in 2017.
Gross additions to tangible fixed assets reaches PHP5.2 billion
Gross additions to tangible fixed assets (capital expenditures less sale of fixed assets) acquired by all establishments of the sector was valued at PHP5.2 billion in 2017. This amount was higher by 4.4 percent from the PHP5.0 billion gross additions to tangible fixed assets reported in 2016.
Activities of head offices had the highest contribution of PHP2.3 billion or 44.6 percent to the total gross additions to tangible fixed assets.
Total change in inventories records at PHP255.0 million
In 2017, the total change in inventories (ending less beginning inventory) of the sector amounted to PHP255.0 million. Compared with the total change in inventories of PHP121.0 million in 2016, this figure increased by 110.6 percent.
Government grants PHP92.0 million subsidy
Total subsidies granted by the government for the sector in 2017 amounted to PHP92.0 million, higher by 50.5 percent from the PHP61.1 million subsidy in 2016. This amount was distributed to research and experimental development on social sciences and humanities, and research and experimental development on natural sciences and engineering with subsidies of PHP87.3 million and PHP4.7 million, respectively.
This Special Release presents the final results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for all 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 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.
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 level of the 2009 Philippine Standard Industrial Classification (PSIC) at the national 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.
Estimation procedure for Establishments with TE of Less Than 20
a. Non-Certainty Stratum
The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the sth industry domain was
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j = 1,2,3..., ns establishments
Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns = number of sample establishments in the non-certainty employment \ stratum in TE of less than 20 in sth domain
b. Certainty Stratum
The total of a characteristic (Xc) for the certainty employment stratum in the Cth industry domain was
c = denotes the certainty employment strata in TE of less than 20 in the cth industry
xcj = value of the jth establishment in the certainty employment strata in TE of less than 20 in the cth industry domain
J = 1,2,3,..., mc establishments
mc = number of establishments in the certainty employment strata in TE of less than 20 in the cth industry domain
c. Total Estimate for TE of Less Than 20
For all sections except B and C, national level estimates of the total of a characteristic for the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,
where d denotes the industry domain.
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 an industry domain in each region,
s =denotes the non-certainty employment strata in TE of 20 and over
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
b. Certainty Stratum (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCCs and with TE 100 and over)
The estimate of the total of a characteristic 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) 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 all professional, scientific and technical activities establishments was 82.5 percent (635 out of 770 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 19 establishments responded online.
Reports of the remaining non-reporting establishments were taken from financial statements from the 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
The survey covered only the formal sector of the economy.
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 is 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 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.
Gross additions to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or 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.
Inventories are 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 Professional, Scientific and Technical Activities sector is the sum of income from service rendered, real estate sales less real estate sold, 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 of 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; payouts and other expense.
See more at the Annual Survey of Philippine Business and Industry (ASPBI) page.