2010 Annual Survey of Philippine Business and Industry - Private Education for Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2012-751

Release Date: 

Tuesday, October 2, 2012

Majority of establishments are engaged in secondary/high school education

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) covered a total of 3,012 establishments with total employment of 20 and over for Private Education.

As shown in Table 1, establishments involved in secondary/high school education recorded the biggest number, accounting for 1,248 or 41.4 percent of the total. Higher education ranked second with 1,214 establishments (40.3%) while primary/elementary education followed with 309 establishments (10.3%). Other education services recorded the least number with 98 establishments (3.3%). Figure 1 shows the distribution of Private Education establishments by industry group.

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

On the regional level, NCR had the most number of establishments with 740 (24.6%). CALABARZON placed second with 521 (17.3%) and followed by Central Luzon with 358 (11.9%). Autonomous Region in Muslim Mindanao recorded the least number of establishments with 28 (0.9%). (Table 2)

Establishments providing higher education employ the most number of workers

In 2010, establishments engaged in Private Education activities employed a total of 237,429. Of this, 233,517 or 98.4 percent were paid employees while 3,912 or 1.6 percent were working owners and unpaid workers. Distribution of employment by industry group is shown in Figure 2.

Higher education establishments absorbed the most number of workers with 152,329 or 64.2 percent of the total. Secondary/high school education establishments ranked second with 63,940 workers (26.9%) followed by primary/elementary education establishments with 11,831 employees (5.0%).

Higher education employees receive the highest average annual compensation.

Total compensation paid by Private Education establishments amounted to PhP54.0 billion which was equivalent to an average annual compensation of PhP231.1 thousand per paid employee.

Higher education employees were the highest earners with an average annual compensation of PHP248.3 thousand. Employees employed by the pre-primary/pre-school education establishments received the lowest average annual remuneration of PHP135.2 thousand. Distribution of average annual compensation per paid employee by industry group is shown in Figure 3.

Top earners are establishments engaged in higher education services

Total revenue reported by the section in 2010 amounted to PHP115.5 billion. Higher education establishments generated the highest revenue of PHP82.7 billion or 71.6 percent of the total. Secondary/high school education establishments followed with PHP23.5 billion (20.3%). Pre-primary/pre-school education generated the least revenue with PHP1.3 billion (1.2%). Figure 4 displays the distribution of revenue and cost by industry group.

Among regions, NCR generated the highest revenue amounting to PhP56.6 billion or 49.0 percent. The least revenue was generated by ARMM with PhP223.8 million or 0.2 percent.

Excluding compensation paid to employees in 2010, the total cost spent by the section reached PHP45.3 billion. Higher education establishments incurred the biggest cost amounting to PHP32.8 billion or 72.3 percent of the total. Secondary/high school education establishments ranked second with PHP8.3 billion (18.2%). Pre-primary/pre-school education spent the least with PHP470.4 million (1.0%).

By region, NCR incurred the highest operating cost with PHP23.2 billion or 51.2 percent of the total cost. CALABARZON followed with PHP5.6 billion or 12.3 percent. The least cost was incurred by ARMM with PHP59.3 million or 0.1 percent.

Revenue-cost ratio amounts to 2.5

Revenue-cost ratio, the revenue generated per PHP1 cost, amounted to 2.5. Among industries, pre-primary/pre-school education and secondary/high school education recorded the highest bothwith 2.8 indicating PHP2.8 revenue per PHP1 cost.

Value added amounts to PHP79.4 billion

Value added for the section was estimated at PHP79.4 billion, 71.3 percent of which was contributed by establishments providing higher education.

Among regions, NCR contributed the highest value added of PHP37.2 billion or 46.9 percent of the total.

Value added per worker is PHP334.3 thousand

Value added per worker, a measure of labor productivity, was valued at PHP334.3 thousand. The highest labor productivity at PHP371.4 thousand was attained by higher education. On the other hand, the lowest labor productivity at PHP214.6 thousand was exhibited by those engaged in pre-primary/pre-school education. Figure 5 shows labor productivity by industry group.

Gross additions to fixed assets reaches PHP11.5 billion

Gross additions to fixed assets of Private Education establishments reached PHP11.5 billion. Higher education establishments recorded the highest with PHP8.7 billion (75.7%) while pre-primary/pre-school posted the least with only PHP47.0 million.

Total change in inventories amounts to PHP63.7 million

Total change in inventories in 2010 summed up to PHP63.7 million. Highest change in inventories was reported by higher education establishments with PHP71.2 million.

Subsidies total to PHP1.0 billion

The government provided PHP1.0 billion as subsidies to the section in 2010. Higher education establishments received the highest subsidy with PHP738.1 million or 70.7 percent of the total.


TECHNICAL NOTES

Introduction

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office (NSO) which aims to provide key measures on the performance, levels, structure and trends of economic activities in the entire country for the year 2010. It is one of the designated statistical activities of the government and as such the survey generates the most critical and essential statistics required for economic planning and analysis..

The 2009 Philippine Standard Industrial Classification (PSIC) shall be adopted for the first time in this round. This is the latest version of the classification of industries in the country released by the NSCB after the 1994 PSIC was amended in 2002. It conforms with the International Standard Industrial Classification (ISIC) Revision 4 prescribe by the United Nations, but with modifications to suit national situation and requirement. The PSIC is a statistical classification of all economic activities, designed as a guide and a comprehensive framework for securing uniformity and comparability of both the government and private sectors..

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 2010 ASPBI covered establishments engaged in 18 economic sections classified under the 2009 Philippine Standard Industrial Classification (PSIC) namely:.

  • Agriculture, Forestry and Fishing

  • Mining and Quarrying

  • Manufacturing

  • Electricity, Gas, Steam and Air Conditioning Supply and Water Supply

  • Water Supply; Sewerage, Waste Management and Remediation Activities

  • Construction

  • Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles

  • Transport and Storage

  • Accommodation and Food Service Activities

  • Information and Communication

  • Financial and Insurance Activities

  • Real Estate Activities

  • Professional, Scientific and Technical Activities

  • Administrative and Support Service Activities

  • Private Education

  • Human Health and Social Work

  • Arts Entertainment, and Recreation

  • Other 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 2010 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 2009 PSIC is utilized to classify units according to their economic activities. It was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 signed on February 10, 2010. It will be used for the 1st time for the ASPBI.

The 2009 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major section, is denoted by the characters A to U. They also refer to sector classification. 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 2010 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 & Over

 

The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 31, 2010 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.

 

The geographic domains of the 2010 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 2010 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.

Response Rate

A total of 1,075 or 98.6 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 DEFINITIONS OF TERMS

 

Economic activity or business is the activity of the establishment as classified under 2009 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, 2010.

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 fixed assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.

Gross additions to tangible 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 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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