2009 Annual Survey of Philippine Business and Industry (ASPBI) - Private Education Services for Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2011-652

Release Date: 

Wednesday, December 28, 2011

 

Majority of establishments are engaged in private secondary education 

  1. The 2009 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 3,014 establishments with total employment of 20 and over. 

  2. Establishments involved in private secondary education (PSIC M812) recorded the biggest number, accounting for 1,235 or 41.0 percent of the total. Private higher education (PSIC M814) ranked second with 1,007 establishments (33.4%) while private elementary education (PSIC M811) followed with 487 establishments (16.1%). Figure 1 shows the distribution of private education establishments by industry group.

    Most establishments are located in the National Capital Region (NCR) 

  3. On the regional level, NCR had the most number of establishments with 738 (24.5%). CALABARZON placed second with 522 (17.3%) and followed by Central Luzon with 357 (11.8%). Autonomous Region in Muslim Mindanao recorded the least number of establishments with 33 (1.1%).

    Establishments providing private higher education employ the most number of workers

  4. In 2009, establishments engaged in private education activities employed a total of 234,637. Of this, 231,565 or 98.7 percent were paid employees while 3,072 or 1.3 percent were working owners and unpaid workers. Distribution of employment by industry group is shown in Figure 2.

     

  5. Private higher education establishments absorbed the most number of workers with 141,406 or 60.3 percent of the total. Private secondary education establishments ranked second with 64,116 workers (27.3%), followed by private elementary education establishments with 16,715 employees (7.1%).

    Private higher education employees receive the highest average annual compensation 

  6. Total compensation paid by private education service establishments amounted to PhP50.0 billion which was equivalent to an average annual compensation of PhP215.7 thousand per paid employee. 

  7. Private higher education employees were the highest earners with an average annual compensation of PhP247.8 thousand. Employees employed by the private technical and vocational post-secondary education establishments received the lowest average annual remuneration of PhP111.2 thousand.

    Top earners are establishments engaged in private higher education services 

  8. Total revenue reported by the sector in 2009 amounted to PhP108.7 billion. Private higher education establishments generated the highest revenue of PhP75.3 billion or 69.3 percent of the total. Private secondary education establishments followed with PhP23.6 billion (21.7%). Private adult and other education generated the least revenue with PhP2.2 billion (2.0%). Figure 3 displays the distribution of revenue and cost by industry group. 

  9. Among regions, NCR generated the highest revenue amounting to PhP52.0 billion or 47.9 percent. The least revenue was generated by ARMM. 

  10. Excluding compensation paid to employees in 2009, the total cost spent by the sector reached PhP41.8 billion. Private higher education establishments incurred the biggest cost amounting to PhP28.6 billion or 68.4 percent of the total. Private secondary education establishments ranked second with PhP8.7 billion (20.8%). Private adult and other education spent the least with PhP0.9 billion (2.4%).

  11. By region, NCR incurred the highest operating cost with PhP21.0 billion or 50.2 percent of the total cost. CALABARZON followed with PhP5.4 billion or 12.9 percent. The least cost was incurred by ARMM with PhP72.5 million or 0.2 percent.

    Value added amounts to PhP74.8 billion 

  12. Value added for the sector was estimated to PhP74.8 billion, 70.1 percent of which was contributed by private higher education. Among regions, NCR contributed the highest value added of PhP33.9 billion or 45.4 percent of the total.

    Gross additions to fixed assets reaches PhP11.6 billion 

  13. Gross additions to fixed assets of private education service establishments reached PhP11.6 billion. Private higher education establishments recorded the highest with PhP8.4 billion (72.2%).

    Total change in inventories amounts to PhP39.1 million 

  14. Total change in inventories in 2009 summed up to PhP39.1 million. Highest change in inventories was reported by private secondary education establishments. 

    Subsidies total to PhP620.1 million 

  15. The government provided PhP620.1 million as subsidies to the sector during the year 2009. Private secondary education establishments received the highest subsidy with PhP346.6 million or 55.9 percent of the total.

    Labor productivity per worker is PhP0.40 million 

  16. Revenue per worker, a measure of labor productivity was valued at PhP463.4 thousand. The highest labor productivity at PhP532.6 thousand was attained by private higher education. On the other hand, the lowest labor productivity at PhP294.3 thousand was exhibited by establishments engaged in private elementary education. Figure 4 shows labor productivity by industry group. 


     

    TECHNICAL NOTES

    Introduction

    The 2009 Annual Survey of Philippine Business and Industry (ASPBI), conducted in 2010 with 2009 as reference year, is one of the continuing activities of the National Statistics Office. It will be a source of benchmark levels on the structure and trends of economic activities in the country for the year 2009. Particularly, the data from ASPBI will be used in constructing national and regional income accounts in the country, determining and comparing regional economic structures, and formulating plans and policies of the government in the attainment of economic goals..

    The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940..

    Scope and coverage

    The 2009 ASPBI covered establishments engaged in 14 economic sectors classified under the Amended 1994 Philippine Standard Industrial classification (PSIC) namely:.

    • Agriculture, Hunting and Forestry

    • Fishing

    • Mining and Quarrying

    • Manufacturing

    • Electricity, Gas and Water Supply

    • Construction

    • Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods

    • Hotels and Restaurants

    • Transport, Storage and Communications

    • Financial Intermediation

    • Real Estate, Renting and Business Activities

    • Private Education

    • Health and Social Work

    • Other Community, Social and Personal Service Activities

    The scope of the ASPBI was confined to "formal sector" only, which consists of the following:.

    • Corporations and partnership

    • Cooperatives and foundations

    • Single proprietorships with employment of 10 or more

    • Single proprietorships with branches

    Like all other establishment surveys conducted by the NSO, the 2009 ASPBI used establishment as the unit of enumeration. It is defined as "an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location."

    Classification of Establishments

    Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization EO), legal organization (LO), industrial classification, employment size, and geographic location.

    Economic organizations relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

    • Single establishment is an establishment which has neither branch nor main office

    • Branch only is an establishment which has a separate main office located elsewhere

    • Establishment and main office, both located in the same address and with branches elsewhere

    • Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise

    • Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments

    The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:

    • Single Proprietorship refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator

    • Partnership refers to an association of two or more individuals for the conduct of a business enterprise based upon an agreement or contract between or among them to contribute money, property or industry into a common fund with the intention of dividing profits among themselves. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS

    • Government Corporation is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government. The establishment name included words such as Corporation or CORP., INCORPORATED or INC

    • Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC

    • Cooperative - the establishment name includes words such as Cooperative or COOP

    The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The amended 1994 PSIC is utilized to classify units according to their economic activities.

    The amended 1994 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major division, is denoted by the characters A to Q. The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

    The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2009 ASPBI:

    TE Code Total Employment TE Code Total Employment
    0 1 - 4 5 100 - 199
    1 5 - 9 6 200 - 499
    2 10 - 19 7 500 - 999
    3 20 - 49 8 1000 - 1999
    4 50 - 99 9 2000 and Over


    The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 30, 2006 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

    The geographic domains of the 2009 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

    Hence, the samples of the 2009 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE less than 20, the data that will be presented is limited only at the national level.

    Response Rate

    A total of 1,337 or 99.33 percent of sample establishments responded. These include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

    Concepts and Definition of Terms

    Economic activity or business is the activity of the establishment as classified under the amended 1994 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

    Total Employment is the number of persons who worked in or for this establishment as of November 15, 2009.

    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, 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.

    Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer's price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

    Cost refers to all expenses excluding compensation incurred during the year whether paid or payable. Valuation should be at purchaser's 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.

    Fixed assets are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

    Book Value of Tangible Assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.

    Gross additions to fixed assets is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

    Value Added is gross output less intermediate input. Gross output for private education establishments is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.

    Inventories refer to the stocks of goods owned by and 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 is equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

    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 or production and to protect it against competition.

     

    Source:   National Statistics Office
                  Manila, Philippines

 

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