A total of 8,856 establishments providing private education services nationwide were reported in the 2002 Annual Survey of Philippine Business and Industry (ASPBI), around 6,796 establishments (76.7%) had an average total employment (ATE) of less than 20. The remaining 2,060 or 23.3 percent had an average total employment of 20 and over.
Majority of these establishments (46.8%) were private elementary schools (PSIC M811); followed by private secondary education establishments (M812) with 18.7 percent; private technical and vocational post-secondary schools offering non-degree education (M813), 14.6 percent; private higher education establishments (M814), 12.7 percent; and private adult and other education establishments (M815) with only 7.1 percent of the total count. See Figure 1 for the distribution of establishments by average total employment and by industry group.
The private education sector provided employment to some 243,605 workers, 98.2 percent of which were paid employees. Most of these employees (45.9%) were hired by private higher education establishments (M814) while private adult and other education establishments (M815) accounted for only 1.5 percent of the total employment. Figure 2 displays the distribution of employment by industry group.
Compensation paid to employees of private education establishments amounted to more than P28.8 billion in 2001. This translates to an average monthly compensation of P10,035 per paid employee.
On the average, employees of private higher education (M814) establishments were the highest paid with P12,356 per month. The least paid were those in the private elementary education (M811) establishments with only P6,362 per month.
Total revenue earned by the sector in 2001 amounted to P60.7 billion. Private higher education (M814) contributed the largest share of revenue of P33.4 billion or 55.1 percent. Private adult and other education (M815) shared the least with only P0.6 billion or 1.1 percent of the total revenue. Figure 3 illustrates the distribution of revenue and costs by industry group.
Excluding compensation paid to employees, total costs spent to operate and maintain private education establishments reached P23.8 billion. Figure 3 illustrates the distribution of revenue and costs by industry group.
Gross additions to fixed assets in 2001 of private education establishments totaled P8.6 billion. Private higher education establishments contributed the biggest gross additions to fixed assets amounting to P5.7 billion.
Change in inventories in 2001 was recorded at P28.8 million. Private technical and vocational post-secondary non-degree education had the highest change in inventories which comprised 55.6 percent of the total.
Value added was computed at P43.9 billion in 2001. The highest value added was posted by private higher education amounting to P24.5 billion.
Scope and Coverage
The 2002 Annual Survey of Philippine Business and Industry (ASPBI) formerly known as Annual Survey of Establishments (ASE) was conducted to collect information on the structure and trends of economic activities in the entire country for the year 2001. Covered were establishments engaged in economic activities as defined under the 1994 Philippine Standard Industrial Classification (PSIC). These establishments were classified into 14 sectors, one of which is on private education establishments (Sector M). The sector is composed of establishments engaged in 5 industry groups, namely, private elementary education (M811); private secondary education (M812); private technical and vocational post-secondary non-degree education (M813); private higher education (M814) and private adult and other education (M815).
All private education establishments nationwide with average total employment (ATE) of 100 and over were covered on a 100 percent basis and those with ATE less than 100 were selected using simple random sampling.
A total of 654 or 92.11% responded out of the 710 samples drawn for the sector. Adjustments for non-response were made through imputations.
Concepts and Definition of terms
Establishment is an economic unit, which engages under a single ownership or control, i.e. under a single legal entity, in one, or predominantly one kind of economic activity at a single fixed location.
Economic activity or business is the activity of the establishment as classified under the1994 Philippine Standard Industrial Classification (PSIC). The main activity refers to the activity that contributes the biggest or major portion of the gross income or revenue of the establishment.
Total Employment is the number of persons who worked in or for the establishment as of November 15, 2001.
Paid employees are all persons working in the establishments receiving pay as well as those working away from the establishment when paid by and under the control of the establishment. Included are persons working as full-time or part-time and those employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers and workers receiving commission only.
Unpaid workers include working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working without regular pay for at least one third of the working time normal to the establishment.
Salaries and wages are payments in cash or in kind, prior to deduction for employee?s contribution to SSS/GSIS, withholding tax, etc. Included are total basic pay, vacation, sick, maternity leave pay, overtime pay, and other benefits.
Revenue refers to cash received and receivables for goods sold and services rendered.
Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at market price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods received from and services rendered by other establishment of the same enterprise are valued as though purchased
Gross additions to fixed assets refer to the cost of acquisition of fixed assets acquired in 2001 less the value of sales of fixed assets during the year.
Fixed assets are physical assets expected to have productive life of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, fixtures, machinery, tool, furniture, office equipment, vehicles, and the like.
Capital expenditures refer to the cost of acquisition of fixed assets acquired in 2001 whether or not full payments have been made.
Subsidies are special grants in the form of financial assistance or tax exemption or tax privilege given by the government to develop an industry or production and to protect it against competition.
Inventories refer to stocks of goods owned by or under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser's price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.
Change in Inventories as a derived indicator is computed as the value of ending inventory less the value of beginning inventory.
Value Added is the total revenue plus capital expenditures (own account) plus change in inventories less total costs (net of indirect taxes and interest).
Source: National Statistics Office