Wholesale and retail trade; repair of motor vehicles and motorcycles leads in terms of number of establishments
The Annual Survey of Philippine Business and Industry (ASPBI) preliminary results revealed that there were 34,444 establishments with Total Employment (TE) of 20 and over in the formal sector of the economy in 2017. This represents a 4.3 percent decrease from 36,000 establishments recorded in 2016. (Table A)
Of the 18 sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles reported the highest with 8,150 or 23.7 percent of the total number of establishments. Manufacturing ranked second with 6,032 (17.5%) establishments, followed by Accommodation and Food Service Activities, 5,540 (16.1%), and Education, 3,734 (10.8%). These top four sectors comprised 68.1 percent of the total number of establishments in 2017. (Figure 1 and Table 1)
Across regions, the National Capital Region (NCR) posted the highest number of establishments at 13,748 or 39.9 percent of the total. This was followed by CALABARZON with 4,863 establishments (14.1%). The combined share of these two regions accounted for more than half of the total. (Table 2)
Manufacturing reports the highest number of workers
In 2017, the total employment for establishments with 20 or more workers reached 4.67 million, a 1.3 percent drop from the 4.73 million employment recorded in 2016. (Table A)
Among the sectors, Manufacturing with 1.053 million (22.6%) and Administrative and Support Service Activities, 1.052 million (22.6%) recorded the highest number of workers. These top two sectors accounted for 45.2 percent of the total number of workers. (Figure 2)
NCR, where most of the establishments were located, recorded the highest employment at 2.2 million or 46.1 percent of the total. This was followed by CALABARZON, 757,369 (16.2%) and Central Visayas, 445,742 (9.6%). (Table 2)
Electricity, Gas, Steam and Air Conditioning Supply pays the highest average annual compensation
The total annual compensation paid by establishments with 20 or more workers amounted to PhP1.5 trillion. This translates to an average annual compensation of PhP322,948 per paid worker which is 5.3 percent higher than the average annual compensation posted in 2016 at PhP306,790 per paid worker. (Table A)
Workers in Electricity, Gas, Steam and Air Conditioning Supply continued to receive the highest average annual pay of PhP787,760 per paid worker. This was followed by workers in Information and Communication (PhP717,458 per paid worker) and Financial and Insurance Activities (PhP641,785 per paid worker). On the other hand, workers in Agriculture, Forestry and Fishing (PhP167,406 per paid worker) received the lowest average annual pay. (Figure 3 and Table 1a)
At the regional level, NCR paid the highest average annual pay of PhP416,029 per paid worker. This was followed by Cordillera Administrative Region (PhP342,949 per paid worker) and CALABARZON (PhP280,810 per paid worker). (Table 2a)
Manufacturing emerges as top income earner and top spender
Total income earned by establishments with at least 20 workers amounted to PhP14.7 trillion in 2017, an increase of 6.7 percent, from PhP13.8 trillion in 2016. Likewise, total expense (PhP12.5 trillion) incurred in 2017 is higher by 6.2 percent than the previous year. (Table A)
Manufacturing, the top income generator, accounted for PhP4.9 trillion or 33.4 percent of the total. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles ranked second with PhP3.2 trillion (21.6%), followed by Financial and Insurance Activities, PhP1.5 trillion (10.4%). Similarly, these three sectors were also the top spender for 2017 with total expense as follows:
• Manufacturing, PhP4.2 trillion (33.9%)
• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, PhP3.0 trillion (24.5%)
• Financial and Insurance Activities, PhP1.0 trillion (7.9%)
Region-wise, NCR generated the highest income of PhP7.3 trillion (49.9%) which accounted for almost half of the total income. CALABARZON and Central Luzon followed with income of PhP2.8 trillion (19.0%) and PhP1.3 trillion (8.6%), respectively. Similarly, these regions were the top three regions in terms of expense:
• NCR, PhP6.1 trillion (48.8%)
• CALABARZON, PhP2.5 trillion (19.8%)
• Central Luzon, PhP1.1 trillion (8.8%)
Also, these three regions were the regions which reached the trillion pesos mark in terms of income and expense. (Table 2)
Manufacturing generates the highest value added
The total value added generated by establishments with at least 20 workers stood at PhP4.7 trillion in 2017, an increase of 6.2 percent from PhP4.4 trillion value added recorded a year ago. (Table A)
Among the sectors, Manufacturing generated the highest value added of PhP1.3 trillion or 27.9 percent of the total. Financial and Insurance Activities with PhP0.9 trillion (19.2%) ranked second, followed by Administrative and Support Service Activities, PhP0.4 trillion (7.5%). (Table 1)
At the regional level, NCR with PhP2.7 trillion (57.6%) generated more than half of the total value added, followed by CALABARZON with PhP0.7 trillion (14.0%) and Central Luzon, PhP0.3 trillion (6.6%). In terms of value added, these top three regions displayed exactly the same ranks as with income and expense. (Table 2)
Real Estate Activities are the most productive
The ratio of value added to total employment, a measure of simple labor productivity, stood at PhP1.0 million in 2017. This was higher by 7.7 percent than the previous year’s labor productivity of PhP0.9 million. (Table A)
Real Estate Activities with PhP5.5 million per worker was the most labor productive, followed by Electricity, Gas, Steam and Air Conditioning Supply (PhP5.0 million per worker). Other Service Activities (PhP292,255 per worker) was the least labor productive among sectors. (Table 1a)
At the regional level, CAR posted the highest labor productivity of PhP3.6 million per worker. NCR (PhP1.3 million per worker) ranked next, followed by MIMAROPA (PhP1.0 million per worker). Autonomous Region in Muslim Mindanao with PhP232,987 per worker was the least labor productive among regions. (Table 2a)
Financial and Insurance Activities receives the biggest grants from the government
The total subsidies received by establishments with 20 or more workers amounted to PhP54.6 billion, an increase of 42.8 percent, from PhP38.2 billion subsidies posted in 2016. (Table A)
Financial and Insurance Activities received the biggest amount of PhP10.5 billion (19.3%) subsidy, followed by Administrative and Support Service Activities with PhP9.5 billion (17.4%), and Transportation and Storage, PhP9.2 billion (16.8%). Water Supply, Sewerage, Waste Management and Remediation Activities with PhP48.5 million (0.1%) received the least subsidy while Mining and Quarrying, Construction, Accommodation and Food Service Activities, and Other Service Activities did not receive any subsidy. (Table 1)
At the regional level, NCR with PhP28.4 million (52.1%) received the highest amount of subsidy which amounted to more than half of the total. CALABARZON placed second with PhP6.5 billion (11.9%), followed by Central Visayas, PhP3.7 billion (6.8%). (Table 2)
Transportation and Storage records the largest e-commerce sales
Total sales from e-commerce transactions reached PhP75.5 billion, higher by 84.1 percent than PhP41.0 billion e-commerce sales in 2016.
Among the sectors, Transportation and Storage with PhP40.2 billion (53.3%) recorded the largest sales followed by Manufacturing, PhP20.8 billion (27.5%). These two sectors accounted for more than 80 percent of the total e-commerce sales. (Table 1)
Among the regions, NCR posted the highest sales at PhP52.7 billion or 69.8% of the total e-commerce sales. On the other hand, Eastern Visayas with PhP2.2 million posted the lowest sales while no sales were reported for CARAGA. (Table 2)
(Sgd.) ROSALINDA P. BAUTISTA
Deputy National Statistician
Sectoral Statistics Office
This Special Release presents the preliminary results of the 2017 Annual Survey of Philippine Business and Industry (ASPBI) for the ECONOMY WIDE (18 sectors) for establishments with total employment (TE) of 20 and over.
The 2017 ASPBI is one of the designated statistical activities of the Philippine Statistics Authority (PSA). Data collected from the survey provide information on the levels, structure, performance and trends of economic activities of the formal sector in the entire country for the year 2017.
The survey was conducted nationwide in 2018 with the year 2017 as the reference period of data, except for employment which is as of 15 November 2017.
The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2017 ASPBI questionnaires in the province, as well as in the online accomplishment of questionnaire through the PSA website.
Data are presented at the national level by sector based on the 2009 Philippine Standard Industrial Classification (PSIC) and at the regional level.
The conduct of 2017 ASPBI is authorized under Republic Act (RA) 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 2017 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:
• 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 of Motor Vehicles and 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)
However, three (3) sectors of the 2009 PSIC are not covered. These are:
• Public Administration and Defense; Compulsory Social Security (O)
• Activities of Household as Employee; Undifferentiated Goods and Services Producing Activities of Household for Own Use (T)
• Activities of Extraterritorial Organizational Bodies (U)
The survey was confined to the formal sector of the economy, which consists of the following:
• Corporations and partnership
• Cooperatives and foundations
• Single proprietorship with employment of 10 and over
• Single proprietorships with branches
Thus, the 2017 ASPBI covered only the following economic units:
• All establishments with total employment (TE) of 10 and over, 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 PSIC.
Frame of Establishments
The frame for the 2017 ASPBI was extracted from the 2017 List of Establishments (LE). The estimated number of establishments in operation in the country in 2017 totaled to 917,582. About 228,112 establishments (24.9%) of the total establishments comprise the establishment frame or are within the scope and coverage of the 2017 ASPBI.
Unit of Enumeration
The unit of enumeration for the 2017 ASPBI is the establishment. An establishment is defined in the United Nations International Recommendations on Industrial Statistics as an economic unit, under a single ownership or control, i.e. under a single legal entity, which engages in one or predominantly one kind of economic activity at a single fixed physical location.
Taxonomy of Establishments
An establishment is categorized by its economic organization, legal organization, industrial classification, employment size, and geographic location.
Economic Organization relates to the organizational structure or role of the establishment in the organization. An establishment may be single establishment, branch, establishment and main office with branches elsewhere, main office only, and ancillary unit other than main office.
Legal Organization refers to the legal form of the economic entity that owns the establishment. This provides the legal basis for ownership. An establishment may be single proprietorship, partnership, government corporation, stock corporation, non-stock corporation, and cooperative.
Industrial classification of an economic unit was determined by the activity from which it derives its major income or revenue. The 2009 PSIC was utilized to classify economic units according to their economic activities.
Size of an establishment is determined by its TE as of a specific date.
Geographic Classification refers to the 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 31 December 2017 was used for the 2017 ASPBI.
The 2016 ASPBI utilized stratified systematic sampling with 5-digit PSIC serving as the industry strata and employment size as the second stratification variable.
For establishments with TE of 20 and over, the 18 administrative regions serve as the geographic domains while the 5-digit level (sub-class) of the 2009 PSIC serves as the industry domain.
For Establishments with TE of 20 and Over
a. Non-Certainty Stratum (strata of TE 20 to 49 and TE 50 to 99)
The estimate of the total of a characteristic () for the non-certainty employment strata in an industry domain in each region,
s = denotes the non-certainty employment strata in TE of 20 to 99
p = 1, 2...18 regions (geographic domains)
xspj = value of the jth establishment in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
j = 1, 2, 3…nsp establishments
Wspj = weight of the jth establishment in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
Nsp = total number of establishments in the non-certainty employment strata in TE of 20 to 99 for an industry domain in each region
nsp = number of sample establishments in the non-certainty employment strata in TE of 20 to 99for an industry domain in each region
b. Certainty Stratum (TE 100 and over)
The value of the total of a characteristic () for the certainty employment stratum in an industry domain in each region,
c = denotes the certainty employment strata in TE 100 and over
p = 1, 2...18 regions (geographic domains)
xcpj = value of the jth establishment in the certainty employment strata in TE 100 and over in an industry domain within each region
j = 1, 2, 3…mcp establishments
mcp = number of establishments in the certainty employment strata in TE 100 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 (geographic domain) was obtained by aggregating the estimates for all employment strata (non-
certainty and certainty) in the same industry domain,
Where dp denotes the industry domains in each region.
National level estimates of the characteristics by industry domain were obtained by aggregating separately the estimates () for the particular industry domain from all the regions.
For Establishments with TE of Less Than 20
The estimate of the total of a characteristic () for the non-certainty employment stratum TE less than 20 in the sth industry domain was
s = denotes the non-certainty employment strata in TE of less than 20
Xsj = value of the jth establishment in non-certainty employment stratum in TE of less than 20 in Sth industry domain
j = 1, 2, 3...ns establishments
Wsj = weight of the jth establishment in the non-certainty employment stratum of less than 20 in the sth industry domain
Ns = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the sth industry domain
ns = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in sth domain
Weight Adjustment Factor for Non-Response
To account for non-response in the non-certainty strata, the adjustment factor (n/n’) was multiplied with the sampling weight (W) of each of the sampling unit. The sampling weight, 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
Ns = total number of establisments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
n's = number of responding establishments in the employment stratum in TE 1-9 or TE 10-19 in the sth industry domain
For the non-certainty employment stratum for the selected industry domain with TE 20-99, the adjusted weight (W'spj) was
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 20-99 for the selected industry domain within each geographic domain (region)
There are seven types of questionnaires used for the survey which will capture data for establishments of the 18 sectors of economy as defined in the 2009 PSIC. A clearance number and expiry date are shown at the upper right hand corner of the cover page of the questionnaire. The questionnaire is administered to the sample establishment through the establishment itself or a reporting unit. An address stub which contains information on the business name and complete address of the sample establishment is pasted in every questionnaire to guide the field staff on where to deliver the questionnaire.
A web-based version of the 2017 ASPBI questionnaires was available for accomplishment by sample establishment online at the PSA website, https://aspbi.psa.gov.ph.
The response rate for establishments with TE of 20 and over was 88.3 percent (18,535 out of 20,986 establishments). Included are receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.
Of the total responses, 696 responded online or 3.8 percent.
Reports of the remaining non-reporting establishments were imputed based on established imputation methods and from other available administrative data sources. However, reports of establishments in the certainty stratum, which were found to be duplicates and out of business in 2017, were not imputed. The table below shows the response rate by sector and the number of establishments which responded on-line.
Limitation of Data
The 2017 ASPBI covered only the formal sector of the economy.
Concepts and Definitions of Terms
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.
Compensation is the sum of 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, PhilHealth, Pag-ibig, etc.
Cost refers to all expenses incurred during the year whether paid or payable. Valuation is at purchaser prices 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.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
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.
Establishment is an economic unit under a single ownership and control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location.
Expense refers to cost incurred by the establishment during the year whether paid or payable. This is treated on a consumed basis.
Gross addition to tangible fixed assets is equal to capital expenditures less sale of fixed assets, including land.
Income or Revenue refers to cash received and receivables for goods/products and by-products sold and services rendered.
Intermediate expense (for industrial sectors A, B, D, E F) are expenditures incurred in the production of goods such as materials and supplies purchased, fuels purchased, electricity and water purchased, and industrial services done by others plus beginning inventory of materials, supplies and fuels less ending inventory of materials, supplies and fuels.
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.
Paid workers 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.
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.
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.
Total employment is the number of persons who worked in for the establishment as of November 15, 2016.
Value added is gross output less intermediate input. Gross output is value of output plus income from non-industrial services done for others (except rent income from land). Intermediate input is intermediate expense plus expense for non-industrial services done by others (except rent expense for land) and other costs.
Value of output (for industrial sectors A, B, D, E F) represents the sum of the receipts from products and by-products sold, income from industrial services done for others, and goods sold in the same condition as purchased less the cost of goods sold; and value of fixed assets produced on own account, and change in inventories of finished products and work-in-progress.