2014 Annual Survey of Philippine Business and Industry (ASPBI) - Education Sector For Establishments with Total Employment of 20 and Over : Preliminary Results

Reference Number: 

2017-006

Release Date: 

Thursday, January 12, 2017

 

Private secondary education has the largest number of establishments

Preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that a total of 3,546 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in private education sector. Secondary/high school education garnered the highest number of establishments with 1,542 (43.5%).  Higher education industry has the second largest number of 1,251 (35.3%).  Educational support services industry had the least number of establishments at 3 (0.1%).  Figure 1 shows the percentage distribution of private education sector by industry group.

 

 

On the regional level, National Capital Region (NCR) had the highest number of establishments with 811 (22.9%).  CALABARZON followed second with 657 establishments (18.5%). Central Luzon ranked third with 447 establishments (12.6%).  Autonomous Region in Muslim Mindanao (ARMM) and CARAGA had the least, both with 50 establishments (0.1%) each.

 

 

Establishments providing higher education generate the highest number of workers

Employment for the sector reached a total of 258,810 in 2014.  Out of this total, 255,850 or 98.9 percent were paid employees while the remaining 2,960 or 1.1 percent were working owners and unpaid workers.

Higher education industry had the most number of employees with 157,018 or 60.7 percent of the total.  Secondary/high school education followed with 72,598 employees (28.1%).  The least number of employees was recorded by educational support services industry with 205 or less than one percent of the total.  Figure 2 shows the employment distribution for private education sector by industry group.

 

 

Across regions, NCR had the highest number of employees with 79,855 (30.9%).  CALABARZON and Central Luzon, ranked second and third with 38,317 (14.8%) and 25,444 (9.8%) employees respectively.  ARMM had the least with only 2,794 employees .

The sector recorded an average number of 72 workers per establishment.  Higher education industry posted the largest average at 125 employees per establishment, surpassing the national average.  This was followed by educational support services industry with 68 workers. Pre-primary/pre-school education ranked last with only 30 workers per establishment.

 

Employees of educational support services industry are the highest paid in 2014

Total compensation paid by private education sector amounted to PHP66.0 billion, translating to an average annual compensation of PHP257.8 thousand per paid employee.

Across industry group, educational support services industry paid the highest average annual compensation of PHP381.2 thousand per paid employee, followed by higher education industry with PHP293.9 thousand.  On the other hand, employees of establishments providing pre-primary/pre-school education industry had the lowest average annual pay of PHP163.8 thousand.  Figure 3 shows the average annual compensation per paid employee for private education sector by industry group.

 

Among regions, NCR had the largest share of compensation paid, with PHP28.8 billion, translating to an average annual compensation of PHP365.0 thousand per paid employee. Cordillera Administrative Region (CAR) and Davao Region ranked second and third, with an average annual compensation of PHP261.5 thousand and PHP253.3 thousand paid to each employee respectively.  Eastern Visayas paid the least average annual compensation of only PHP138.2 thousand.

 

Higher education is the top income generating industry in 2014 for the sector

Income generated by the sector reached PHP149.3 billion.  Higher education industry contributed the biggest share of PHP107.9 billion or 72.3 percent of the total income.  Second biggest income generating industry was secondary/high school education industry with PHP30.0 billion or 20.1 percent.  Educational support services industry generated the least income of PHP199.5 million or 0.1 percent of the total income.

Across region, NCR generated the highest income of PHP69.3 billion (46.4%), followed by CALABARZON with PHP18.7 billion or 12.5 percent of the total income for the sector.  Central Visayas generated the third highest income with PHP11.9 billion or 8.0 percent.  The least income was generated by ARMM with PHP730.7 million or a mere 0.5 percent.

 

Total expense reach PHP126.5 billion; higher education is highest spender

Total expense incurred by the sector in 2014 amounted to PHP126.5 billion.  Higher education incurred the highest expense of PHP89.4 billion (70.7%).   Educational support services had the lowest expense of PHP183.1 million (0.1%).   Figure 4 shows the income generated and expense incurred by education sector activities by industry group.

 

At the regional level, NCR was the top spender at PHP57.8 billion (45.7%), second was CALABARZON with PHP16.3 billion (12.9%) expense, and Central Visayas incurred the third highest expense of PHP9.8 billion or 7.8 percent.   Establishments in ARMM incurred the lowest expense of PHP625.7 million.

 

Income per peso expense for the sector stands at 1.18 in 2014

The income generated per peso expense for the sector stood at 1.18.  This means that an income of PHP1.18 was generated for every peso spent.  Establishments in higher education industry recorded the highest ratio of 1.21.  Ranked second was secondary/high school education with a ratio of 1.13.  Pre-primary/pre-school education registered the lowest, with a ratio of 0.99 income per peso expense.

Among regions, Northern Mindanao recorded the highest ratio of PHP1.43 income per peso expense.  CARAGA came in second with 1.28 and Cagayan Valley posted the lowest ratio of 1.05 income per peso expense.

 

Value added amounts to about PHP101.9 billion

Value added for the sector was estimated at about PHP101.9 billion.  Higher education contributed the highest value added amounting to PHP73.9 billion or 72.6 percent of the total value added.  On the other hand, educational support services reported the lowest with PHP102.0 million.  Figure 5 shows the distribution of value added of private education sector by industry group.

 

 

NCR had the highest value added recorded at PHP45.8 billion (45.0%).  Ranked second was CALABARZON with PHP12.9 billion (12.7%). Central Luzon came third with a recorded value added amounting to PHP8.2 billion (8.0%).  ARMM reported the least value added of PHP528.9 million or 0.5 percent of the total value added in 2014.

 

Employees of educational support services industry are the most productive in 2014

Value added per worker, a measure of labor productivity, was valued at PHP393.6 thousand.  Workers of educational support services industry were the most productive, with an average of PHP497.1 thousand. On the other hand, primary/elementary education workers were the least productive with PHP193.6 thousand.

Region-wise, workers in NCR garnered the highest labor productivity with PHP573.9 thousand per employee, Central Visayas ranked second with PHP387.9 thousand and Davao Region ranked third with PHP375.6 thousand.  Workers in Eastern Visayas garnered the least labor productivity amounting to PHP172.2 thousand.

 

Gross addition to tangible fixed assets totals PHP12.5 billion

The sector acquired a total of PHP12.5 billion worth of fixed assets in 2014.  Higher education industry recorded the highest among the industry groups with PHP8.3 billion or 66.7 percent of the total, followed by secondary/high school education with about PHP3.7 billion or 29.4 percent. Educational support services industry had the least share of gross addition to tangible fixed assets worth PHP2.4 million.

Across regions, more than half or 50.6 percent of gross addition to fixed assets was acquired by establishments in the NCR.  Central Luzon recorded a share of PHP1.8 billion (14.0%) and CALABARZON contributed PHP1.1 billion or 9.0 percent.  A total of PHP1.5 billion worth of fixed assets was acquired by establishments located in Mindanao.

 

Other education services industry records the highest change in inventories

In 2014, other education services had the highest share in inventory of PHP13.0 million.  This was followed by pre-primary/pre-school education industry with PHP12.0 thousand.

Among regions, Western Visayas posted the highest change in inventories amounting to PHP7.3 million.  Other regions which reported more than PHP2.0 million changes in inventories were the following:

  •  Central Visayas, PHP5.0 million;
  •  Davao Region, PHP3.5 million;
  •  Cagayan Valley, PHP2.3 million, and
  •  Zamboanga Peninsula, PHP2.0 million.

 

Subsidies reach to PHP1.3 billion

Subsidies in 2014 reached PHP1.3 billion with the government providing grants to all the industries in the sector except for educational support services industry.  Secondary/high school education received the highest grant from the government amounting to PHP836.4 million (62.4%), followed by higher education with PHP296.2 million or 22.1 percent share of the total subsidies for the sector.  The least subsidy was received by pre-primary/pre-school education amounting to PHP6.0 million.

All the regions received subsidies from the government in 2014.  NCR was granted the largest with PHP209.5 million, followed by Central Visayas with PHP196.8 million or 14.7 percent of the total. Mindanao regions got a combined total of PHP241.1 million.

 

Sales from E-commerce amounts to PHP57.2 million

Transactions from e-commerce reached PHP57.2 million in 2014 and only other education service establishments located in NCR reported sales from e-commerce.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Private Education Activities sector for establishments with total employment of 20 and over in the formal sector of the economy.

The 2014 ASPBI is 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 of the economy for year 2014.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

The survey was conducted nationwide in April 2015 with the year 2014 as the reference period of data, except for employment which is as of November 15, 2014..

Data are presented at the national, regional and industry group or 3-digit 2009 Philippine Standard Industrial Classification (PSIC). 

Data collection was intensified through the use of web-based or online accomplishment of questionnaire through the PSA website and downloading of e-questionnaire and submission thru e-mail.

Legal Authority

The conduct of the 2014 ASPBI is authorized under Republic Act 10625 known as the Philippine Statistical Act of 2013 - Reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

Scope and Coverage

The 2014 ASPBI is a nationwide undertaking 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 2014 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 2014 LE shows that there are about 944,500 establishments in operation in the country for the year.  About 266,000 establishments (28% of the total establishments) belong to the Formal Sector of which 231,000 (87%) comprise the establishment frame.

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 Work Activities (Q)
  • Arts, Entertainment and Recreation (R)
  • Other Service Activities (S)

Sampling Design

Unit of Enumeration

The unit of enumeration for the 2014 ASPBI is 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 Organization (EO) refers to the organizational structure or role of the establishment in the organization.  

Legal Organization (LO) refers to the legal form of the economic entity that provides the legal basis for ownership of the establishment. 

Industrial Classification 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 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. 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.

Geographic Classification is grouping of establishments 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 PSGC as of December 31, 2014 was used for the 2014 ASPBI.

Sampling Design

Selection of sample establishment for the 2014 ASPBI was done using stratified systematic sampling with 3-digit or 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

Estimation Procedure

For Establishments with TE of 20 and Over

   a.  Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99) for Sections G, H, I, J, K, L, M, N, P, Q, R and S.

       The estimate of the total of a characteristic  for the non-certainty employment strata in TE of 20 and over for an industry                      domain in each region 

where:

      s = denotes the non-certainty employment strata in TE of 20 and over        

      p = 1,2,...17 regions (geographic domains)

  Xspj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each regionin each region 

       j = 1,2,3,..., nsp establishments                                                 

  Wspj = weight of the jth establishment in non-certainty employment strata in TE of 20 and over for an industry domain in each region                                                                                                                                                                                     

   Nsp = total number of establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

    nsp = number of sample establishments in the non-certainty employment strata in TE of 20 and over for an industry domain in each region

 

   b.  Certainty Stratum 

       The total of a characteristic 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 employment strata in TE of 20 and over        

       p = 1,2,...17 regions (geographic domains)

   Xcpj = value of the jthestablishment in the non-certainty employment strata in TE of 20 and over in for an industry domain in each region 

       j = 1,2,3,..., mcp establishments                                                 

  mcp = number of establishments in the certainty employment strata in TE of 20 and over in an industry domain within each region

 

 

   c.  Total Estimate for TE of 20 and Over 

The estimate of the total of a characteristic  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 dp denotes the industry domains in each region

National level estimate of the the characteristic by industry domain were obtained by aggregating separately the estimates  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

Thus, the adjusted weight (W'sj) for employment stratum in TE 1-9 or TE 10-19 was

Where:

  N = total number of establishments in employment stratum in TE 1-9 or TE 10-19 in the Sth industry domain 

  n' = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 Sth industry domain 

For the non-certainty employment stratum for the selected industry domain with TE of 20-99, the adjusted weight (W'spj) was

Where:

 Nsp = total number of establishments in the non-certainty employment stratum with TE 20-99 for the selected industry domain within each geographic domain (region)

 n'sp = number of responding establishments in the non-certainty employment stratum with TE of 20-99 for the selected industry domain within each geographic domain (region)

 

Response Rate

Field operations of the 2014 ASPBI were scheduled from April to July 2015.

Total response rate for Private education activities sector with TE of 20 and over was 84.6 percent (992 out of 1,173 establishments).  This include receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 26 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.

Total Employment is the number of persons who worked in for the establishment as of November 15, 2014.

Paid employees are all full-time and part-time employees working in or for the establishment and receiving pay, as well as those working away from the establishment and paid by and under the control of the establishment.  Included also are all employees on sick or maternity leave, paid vacation or holiday and on strike.  Excluded are directors paid solely for their attendance at meetings, consultants, workers on indefinite leave, working owners who do not receive regular pay, home workers and workers receiving pure commissions only.

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

Compensation is the sum of salaries and wages, separation, terminal pay and gratuities paid by the establishment to its employees and total employer’s contribution to SSS/GSIS, ECC, PhilHealth, 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.

Income or Revenue includes cash received and receivables for goods/products and by-products sold and services rendered.  Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

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

Expense refers to cost incurred by the establishment during the year whether paid or payable.  This is treated on a consumed basis.  Valuation is at purchaser price including taxes and other charges, net of rebates, returns and allowances. Goods and services received by the establishment from other establishments of the same enterprise are valued as though purchased.

Intermediate cost  refers to expenses incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity purchased and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.

Value Added is gross output less intermediate input. Gross output for education sector is equal to the sum of total income (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 expense items: materials and supplies; fuels, lubricants, oils and greases; electricity and water; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other expense; less change in inventory of materials and supplies; fuels, lubricants, oils and greases; and goods for resale.  

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

Change in total inventories is computed as the total of ending inventory less the total beginning inventory.

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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