2013 Annual Survey of Philippine Business and Industry (ASPBI) - Education : Preliminary Results

Reference Number: 

2016-20

Release Date: 

Friday, February 12, 2016

 

Private secondary education sector has the largest number of establishments

Preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that a total of 3,551 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in Private education activities. Secondary/high school education garnered the highest number of establishments at 1,548 (43.6%).  Higher education followed next with 1,245 (35.1%).  Pre-primary/pre-school education had the least number of establishments at 134 (3.8%).  Figure 1 shows the percentage distribution of education activities establishments by industry group.

 

 

National Capital Region (NCR) has the most number of establishments

On the regional level, NCR had the highest number of establishments with 803 (22.6%). CALABARZON placed second with 654 establishments (18.4%).  Central Luzon followed next with 445 establishments (12.5%).  Autonomous Region in Muslim Mindanao (ARMM) had the least with only 43 establishments (1.2%). (See Table 2)

 

Establishments providing higher education generate the highest number of workers

Employment for the sector reached a total of 257,832. Out of this total, 254,689 or 98.8 percent were paid employees while the remaining 3,143 or 1.2 percent were working owners and unpaid workers. .

Higher education had the most number of employees with 155,906 or 60.5 percent of the total.  Secondary/highschool education followed with 71,193 employees (27.6%). The least number of employees were employed by pre-primary/pre-school education with 4,318 or 1.7 percent.  Figure 2 shows the employment distribution for education activities by industry group.

 

 

Across regions, NCR had the highest number of employees with 77,923 (30.2%). CALABARZON and Central Luzon, ranked second and third with 38,629 (15%) and 26,116 (10.1%) employees respectively, ARMM had the least with only 2,487 employees or about 1.0 percent of the total. (See Table 2)

The sector recorded an average number of 73 workers per establishment. Higher education posted the largest average at 125 employees followed by other education services/educational support services with 52 workers. Pre-primary/pre-school education, however, ranked last with only 32 workers per establishment. (See Table 3)

 

Higher education employees receive the highest average annual compensation

Total compensation paid by the sector amounted to PHP62.4billion, translating to an average annual compensation of PHP245.1 thousand per employee.

Across industry group, higher education paid the highest average annual compensation with PHP275.2 thousand per employee followed by other education/educational support services with PHP256.2 thousand. On the other hand, establishments providing pre-primary/pre-school education had the lowest average annual pay of PHP155.9 thousand per employee. Figure 3 shows the average annual compensation per paid employee for education activities by industry group.

 

NCR had the largest share of compensation paid, with 27.4 billion. CALABARZON and Central Luzon followed with PHP7.7 billion and PHP4.8 billion, respectively. ARMM had the least with only PHP258.5 million (0.4%).

 

Top earners are establishments engaged in higher education services

Income generated by the sector reached PHP143.6 billion.  Higher education contributed the biggest share with PHP102.2 billion or 71.2 percent of the total income. Second biggest income generating industry was secondary/high school education with PHP27.1 billion or 18.8 percent. Pre-primary/pre-school education generated the least income among the industry group at PHP1.5 billion or 1.0 percent.

Among regions, NCR generated the highest income of PHP67.8 billion (47.2%), followed by CALABARZON with PHP18.7 billion or about 13.0 percent of the total income for the sector. Central Visayas generated the third highest income with PHP11.1 billion or 7.7 percent. The least income was generated by ARMM with PHP413.1 million or a mere 0.3 percent.

 

Total expense reached PHP120.6 billion; higher education is highest spender

Total expense incurred by the sector in 2013 amounted to PHP120.6 billion. Higher education incurred the highest other expense of PHP83.8 billion (69.5%). Pre-primary/pre-school had the lowest expense of PHP1.2 billion (1.0%).  Figure 4 shows the income generated and expense incurred by education activities by industry group.

 

Across regions, NCR was the top spender of PHP54.8 billion (45.5%), followed by CALABARZON with PHP16.0 billion (13.3%), and Central Visayas was the third highest spender with PHP9.2 billion or 7.6 percent.  ARMM, with the least number of establishments, had the least expense of PHP394.3 million incurred during its operation in 2013.

 

Income per peso expense stands at 1.2

The income generated per peso expense stood at 1.2. Among industries, primary/elementary education services and higher education services recorded the highest with 1.2. Other education services/educational support services registered the lowest with 1.0 income per peso expense.

NCR, Ilocos Region, CALABARZON, Bicol Region, Central Visayas, Zamboanga Peninsula, Davao Region and Caraga among regions recorded the highest income per peso expense of 1.2. While ARMM had the least at 1.0.

 

Value added amounts to about PHP102 billion

Value added for the sector was estimated at about PHP101.8 billion. Higher education contributed the highest value added amounting to PHP72.8 billion or 71.3 percent of the total value added. On the other hand, Pre-primary/pre-school education reported the lowest with PHP1.1billion. Figure 5 displays the distribution of value added by industry group.

 

 

NCR had the highest value added recorded at PHP46.0 billion (45.2%), followed by CALABARZON with PHP12.5 billion (12.3%). Third is Central Luzon and Central Visayas, both recording value added amounting to PHP8.1 billion (8.0%).  ARMM recorded the least value added of PHP306.7 million or 0.3 percent.

 

Employees of higher education services are the most productive

Value added per worker, a measure of labor productivity, was valued at PHP394.7 thousand.  Figure 6 shows that higher education services had the highest average of PHP466.7 thousand among industries. Primary/elementary education workers are the least productive with PHP250.2 thousand.

Region-wise, workers in NCR garnered the highest labor productivity with PHP590.0 thousand per employee, CAR is second with PHP377.9 thousand, followed by Central Visayas with PHP381.0 thousand.  ARMM workers garnered the least labor productivity amounting to PHP123.3 thousand.

 

Gross Additions to Tangible Fixed Assets totals PHP13.9 billion

The sector acquired a total ofPHP13.9 billion worth of fixed assets in 2013. Higher education industry recorded the highest among the industry group with PHP11.1billion or 80.2 percent of the total, followed by secondary/high school education with about PHP2.0 billion or 14.2 percent.  Pre-primary/pre-school education had a least gross addition to tangible fixed assets with 55.2 million.

 

Educational support and other education services records the highest change in inventories of PHP8.6million

Change in inventories, defined as the value of ending less the beginning inventory, amounted to negative PHP57.8million. Other education services/educational support services had the highest inventory of PHP8.6 million while higher education had the highest negative inventory of PHP56.9 million.

 

Subsidies reach to PHP1.1 billion

Subsidies in 2013 reached PHP1.1billion with the government providing grants to all the industries in the sector.Secondary/high school education received the highest grant amounting to PHP487.0 million (42.9%), followed by higher education with PHP419.2 million or 37 percent share of the total subsidies for the sector. The least subsidy was PHP11.0 million, received by pre-primary/pre-school education.

 

Sales from E-commerce amounts to PHP930.3 million

Transactions from E-commerce reach to PHP930.3 million in 2013.

Three industries reported sales from E-commerce and these are the following:.

  •  Secondary/high schooleducation, with PHP820.6
  •  Other education services/educational support services,with PHP95.3million
  •  Higher education, with PHP14.4 million.

Likewise, only five regions reported sales from E-commerce on 2013. Central Luzon reported the highest E-commerce sales of PHP821.2 million, followed by NCR with an amount of PHP63.6 million.Davao region reported the lowest E-commerce sales of PHP2.8 million.

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2013 Annual Survey of Philippine Business and Industry (ASPBI) for the Private Education Activities sector for establishments with total employment of 20 and over for the formal sector of the economy.

The 2013 ASPBI is a forerunner of the 2010 ASPBI and one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey will provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2013. It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

Beginning with the 2013, data processing of the survey/censuses was decentralized to the Provincial Offices as the provinces are near the stablishments which are the sources of data for the surveys/censuses.

Legal Authority

The conduct of the ASPBI is governed by authority of the following legislative acts and presidential directives:

  • Republic Act 10625 know as the Philippine Statistical Act of 2013 dated September 12, 2013 - (Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities).  It shall be the policy of the State to effect the necessary and proper changes in the organizational and functional structures of the PSS in order to rationalize and promote efficiency and effectiveness in the delivery of statistical services.  

      Section 27 of Republic Act No 10625 states that:

     "... Respondents of primary data collection activities such as censuses and sample surveys are obliged to give truthful and complete answers to statistical inquiries. The gathering, consolidation and analysis of such data shall likewise be done in the most truthful and credible manner. Any violation of this Act shall result in the imposition of the penalty of one (1) yearimprisonment and a fine of One hundred thousand pesos (P100,000.00). In cases where the respondent fails to give truthfulcomplete answers to such statistical inquiries is a corporation, the above penalty shall be imposed against, such corporation, enterprise or business concerned, shall be imposed a fine ranging from One hundred thousand pesos (P100,000.00) to Five hundred thousand pesos (P500,000.00)..."

Confidenciality of Information

  • Republic Act 10625 (Philippine Statistical Act of 2013)

     Section 27 of RA 10625 states that:

      "... Any person, including parties within the PSA Board and the PSA, who breach the confidentiality of information, whether by carelessness, improper behavior, behavior with malicious intent, and use of confidential information for profit, are considered guilty of an offense and shall be liable to fines as prescribed by the PSA Board which shall not be less than Five thousend pesos (P5,000.00) nor more than Ten thousand pesos (P10,000,00.00) and/or imprisonment of three (3) months but not exceed one (1) year,

  • Republic Act 6713 (Code of Conduct and Ethical Standards for Public Officials and employees dated February 20, 1989)

         Section 7 of RA 6713 states that:

      "... (c) Disclosure and/or misuse of confidential informatiom.  Public officials and employees shall not use or divulge confidential or classified information officially known to them by reason of their office and not made available to the public, either:  (1) to further their private interest, or give undue advantage of anyone, or (2) to prejudice the public interest..."

Scope and Coverage

The 2013 ASPBI was a nationwide undertaking of establishments confined to the formal sector of the economy and as such excluded the informal sector. The following comprise the formal sector: 

  1.  Corporations and partnerships
  2.  Cooperatives and foundations
  3.  Single establishment with employment of 10 or more
  4.  Single proprietorship with branches

Hence, the 2013 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).

The initial estimate of the 2013 List of Establishments (LE), the frame used to draw the sample establishments for the 2013 ASPBI, registered a total of 941,000 establishments in operation nationwide in 2013. Out of this number, 72 percent or 678,000 establishments belong to the informal sector and only 28 percent or 263,000 establishments made up the formal sector.

Listed below are the 18 economic sectors within the scope of the 2013 ASPBI classified under the 2009 PSIC.

  • 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 and Maintenance of Motor Vehicles, 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 Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Limitations of Data

  • The coverage for the sector excludes public education.
  • Only the formal sector is covered.

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2013 ASPBI was the establishment. An establishment is defined as an economic unit, which engages, under a single ownership or control, in one or predominantly one kind of activity at a single fixed physical location.

Classification of Establishments

An establishment is categorized by its economic organization (EO), legal organization (LO), industrial classification, employment size and geographic location.

Economic organizations (EO).  This refers to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

  • Single establishment (EO=1) is an establishment which has neither branch nor main office. It may have ancillary unit/s, other than main office, located elsewhere.
  • Branch only (EO=2) is an establishment which has a separate main office located elsewhere.
  • Establishment and Main Office (EO=3) is one where the establishment is located in the same address as the main office and with branch/es elsewhere.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Ancillary Unit other than Main Office (EO=5) is a unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides services that support those establishments.

Legal Organization (LO). (EO).  This refers to the legal form of the economic entity provides the legal basis for ownership of the establishment. The following are the types of legal organization:

  • Single Proprietorship (LO=1) refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. A sole proprietorship must apply for a business name and be registered with the Department of Trade and Industry (DTI).
  • Partnership (LO=2) 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.
  • Government Corporation (LO=3) also called Government-Owned or Controlled Corporation (GOCC) refers to a corporation organized for private aim, benefit or purpose with the government as the major stockholder, regardless of whether they are stock or non-stock corporations.
  • Main Office (EO=4) is a unit which controls, supervises and directs one or more establishments of an enterprise.
  • Stock Corporation (LO=4) refers to an ordinary business corporation organized by private persons, created and operated for the purpose of making a profit which may be distributed in the form of dividends to stockholders on the basis of their invested capital.
  • Non Stock, Non-profit Corporation (LO=5) refers to a business corporation which does not issue stock to its members and are created not to profit but for the public good and welfare. Of this character are most of the religious, social, charitable, educational, literary scientific, civic and political organizations and societies.
  • Cooperative (LO=6) refers to an organization composed primarily of small producers and/or consumers who voluntarily join together to form a business enterprise which they themselves own, control and patronize.
  • Others (LO=7) refer to an organization not classified in any of the above classification. It includes private associations, foundations, Non-Governmental Organizations, or other forms of legal organizations.

Industrial classification The Industrial Classification of an economic unit is 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 (SZ) of the Unit of Enumeration The size of an economic unit is determined by its total employment (TE) as of specific date. Total employment (TE) refers to the total number of persons who work in or for the establishment/enterprise. 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.

The following are the size codes and corresponding total employment used in the 2013 ASPBI:

Geographic Classification.  Establishments are also classified 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 latest PSGC as of December 31, 2013 was used for the 2013 ASPBI.

Sampling Design

Selection of sample establishment for the 2013 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata or industry domain and employment size as the second stratification variable.

Estimation Procedure

Non-Certainty Stratum (strata TE of 20-49 and TE of 50-99)

The estimate of the total of a characteristic (X Ì‚_sp) for the non-certainty employment strata in TE of 20 and over for an industry domain in each region (geographic domain) is

where:

  •  s = denotes the non-certainty employment strata in TE of 20 and over
  •  p = 1,2,..., 17 regions (geographic domains)
  •  xspi = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region.
  •  i = 1,2,3,..., nsp establishments
  •  Wphsi = weight of the jth establishment in the non-certainty employment strata in TE of 20 and over for anindustry domain in eachregion.

  •  Nsp = total number of establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for an industry domain within each geographic domain (region)
  •  nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for anindustry domain in each region.

 

Certainty Stratum

The estimate of the total of a characteristic (X Ì‚cp)for the certainty employment stratum in TE of 20 and over in an industry domain in each geographic domain (region) is

where:

  •  c = denotes the certainty stratum in TE of 20 and over
  •  p = 1,2,..., 17 regions (geographic domains)
  •  xcpj = value of the jthestablishment in the certainty employment stratum in TE of 20 and over in an industry domain within each region.
  •  j = 1,2,3,... mcpestablishments
  •  mcp = number of establishments in the certainty stratum in TE of 20 and over in anindustry domain withinregion.

Total Estimate for TE of 20 and Over

The estimate of the total of a characteristic (X Ì‚_dp) for the industry domain in each region (geopraphic domain) was obtained by aggregating the estimated for all employment strata  (non-certainty and certainty) in the same industry domain,

 

where:

  •  d = denotes the industry domain
  •  dp = denotes the industry domain in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates (X Ì‚d) for  the particular industry domain from all the regions,

 

Weight Adjusment Factor for Non-Response

To account for non-response in the non-certainty strata, the adjusment factors, and (n/n') was multipled with the sampling weight (W) of each of the sampling unit. The sampling weight which is defined as N/n was recomputed as

For the non-certainty employment stratum in TE of 20-49 or 50-99, the adjusted weight is

where:

  •  W1spi = is the adjusted weight for non-certainty stratum
  •  Nsp = total number of establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 fon anindustry domain within each geographic domain(region)
  •  n1sp= number of responding establishments in the non-certainty employment stratum in TE of 20-49 or 50-99 for anindustry domain within each geographic domain(region)

 

Response Rate

Field operations of the 2013 ASPBI were scheduled from September to December 2014.

Total response rate for Education Activities sector with TE of 20 and over was 91.2 percent (990 out of 1,086 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 16 establishments responded online.

 

CONCEPTS AND DEFINITIONS OF TERMS

 

Establishment is an economic unit under a single ownership control, i.e., under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

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.

Total employment is the number of persons who worked in for the establishment as of November 15, 2013.

Paid employees are 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.

Unpaid workers are working owners who do not receive regular pay, apprentices and learners without regular pay, and persons working at least 1/3 of the working time normal to the establishment without regular pay. Excluded are silent or inactive business partners.

Compensation includes 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, Phil Health, Pag-ibig, etc.

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.

Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser price including taxes and other charges, net of discounts, rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.

Expense refers to cost incured by the establishment during the year whether paid or payable. This is treated on a consumed basis.

Valued added is gross output less intermediate input. Gross output for the education service activities is the sum of 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 purchased, water purchased; cost of industrial services done by others; goods purchased for resale, research and development expense; environmental protection expense; royalty fee; franchise fee and other expense.

Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.

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.

Inventories refer to the 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.

Subsidies are all special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.

E-Commerce refers to the selling of products or services over electronic systems such as the Internet Protocol-based networks and other computer networks, Electronic Data Interchange (EDI) network, or other on-line system.

 

  

 

 

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