2005 Annual Survey of Philippine Business and Industry (ASPBI) - Private Education Services : Preliminary Results

Reference Number: 

277

Release Date: 

Saturday, July 14, 2007

Majority of establishments have an average total employment of less than 20

  1. The number of establishments in private education service activities reached 11,275 in 2005. Establishments with an average total employment (ATE) of less than 20 dominated the sector with 8,698 establishments or 77.1 percent of the total. The remaining 2,577 establishments or 22.9 percent had an average total employment of 20 and over. (See Tables 1 to 3.)
  2. Establishments involved in private elementary education (PSIC M811) recorded the biggest number, accounting for 5,209 or 46.2 percent of the total. Private secondary education ranked second, with 2,102 establishments (18.6%) while private adult and other education (PSIC M815) followed with 1,539 establishments (13.6%). Figure 1 shows the distribution of private education establishments by industry group.

Establishments providing private higher education employ
the most number of workers

  1. In 2005, establishments engaged in private education activities employed a total of 277,531 workers. Of this total, 269,166 or 97.0 percent were paid employees while 8,365 or 3.0 percent were working owners and unpaid workers. Distribution of employment by industry group is shown in Figure 2.

  1. In addition, out of this total, almost half (48.2%) of them were employed in private higher education establishments. Private secondary education establishments ranked second, employing 66,401 workers (23.9%), followed by private elementary education establishments with 51,564 employees (18.6%)

Private higher education employees receive the
highest average monthly compensation

  1. Total compensation paid by private education service establishments amounted to Php40.8 billion which was equivalent to an average monthly compensation of Php12, 636 per paid employee.
  2. Private higher education employees were the highest earners, with an average monthly pay of Php15,793. Employees in the private technical and vocational post-secondary non-degree education establishments received the lowest average monthly pay of Php7,425. See Table A for the average monthly compensation per paid employee by industry group.

Table A. Average Monthly Compensation Per Paid Employee by Industry Group: 2005

PSIC
Code

Industry
Description

Average Monthly Compensation Per Paid Employee (Pesos)

M

Private Education

12,636

M811

Private elementary education

7,502

M812

Private secondary education

11,862

M813

Private technical and vocational post-secondary non-degree education

7,425

M814

Private higher education

15,793

M815

Private adult and other education

7,442

Top earners are establishments engaged in private higher education services

  1. Total revenue reported by the sector in 2005 amounted to Php86.6 billion. Private higher education establishments generated the highest revenue of Php53.4 billion or 61.7 percent of the total. Private secondary education establishments followed with a total revenue of Php17.5 billion (20.3%). Private adult and other education generated the least revenue of Php2.0 billion (2.3%). Figure 3 shows the distribution of revenue and cost by industry group.

  1. Excluding compensation paid to employees in 2005, the total cost spent by the sector reached Php32.5 billion. Private higher education establishments (PSIC M814) incurred the biggest cost amounting to Php19.9 billion or 61.4 percent of the total. Private secondary education establishments (PSIC M812) ranked second with Php5.6 billion (17.4%). Private adult and other education establishments (PSIC M815) spent the least cost of Php1.0 billion (3.2%).

Gross additions to fixed assets reach Php10.0 billion

  1. Gross additions to fixed assets of private education service establishments reached Php10.0 billion. Private higher education establishments recorded the highest with Php6.8 billion (68.6%).

Total change in inventories amounts to Php66.4 million

  1. Total change in inventories in 2005 summed up to Php66.4 million. The highest change in inventories was reported by private secondary education establishments which comprised 60.1 percent of the total change in inventories.

Government subsidies total to Php789.5 million

  1. The government provided Php789.5 million as subsidies to the sector during the year 2005. Private secondary education establishments received the highest subsidy of Php417.8 million or 52.9 percent of the total.

Labor productivity per worker is Php312 thousand

  1. Revenue per worker, a measure of labor productivity was valued at Php312 thousand. The highest labor productivity of Php399 thousand was attained by private higher education establishments. On the other hand, the lowest labor productivity of Php168 thousand was exhibited by establishments engaged in private elementary education. Figure 4 shows labor productivity by industry group. See also Tables R1 to R3 for other economic indicators.

 


TECHNICAL NOTES

Scope and Coverage

The 2005 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office which aimed to collect information on the structure and trends of economic activities in the entire country for the year 2005. 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 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.

Response Rate

A total of 1,219 or 99.62% responded out of the 1,294 samples drawn for the sector but the effective response rate is 81.99% only.

Concepts and Definition of Terms

Establishment - 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, 2005.

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 employees 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 2005 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.

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 purchasers 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 cost (net of indirect taxes, interest, bad and doubtful debts and depreciation).


Source:   National Statistics Office
                 Manila, Philippines

 

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