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

Reference Number: 2017-056
Release Date: 10 March 2017

Computer programming, consultancy and related activities lead among industries

Preliminary results of the 2014 Annual Survey of Philippine Business and Industry conducted nationwide showed that a total of 816 establishments with total employment (TE) of 20 and over in the formal sector of the economy were engaged in information and communication activities.  Computer programming, consultancy and related activities industries lead the sector with 350 (42.9%) establishments.  Publishing of books, periodicals and other publishing activities and satellite telecommunications activities followed with 85 (10.4%) and 73 (8.9%) establishments, respectively.  Figure 1 shows the percentage distribution of establishment by industry group in 2014.

 

By geographic location, the National Capital Region (NCR) had the most number of establishments with 576 or 70.6 percent of the total.  Central Visayas placed second with 59 (7.2%) establishments followed by CALABARZON with 36 (4.4%) establishments.

Computer programming, consultancy and related activities generate highest employment 

Information and communication sector provided employment to some 126,268 workers in 2014, almost all of which were paid workers (99.8%).

Among industry groups, computer programming, consultancy and related activities generated the highest number of employees with 46,563 workers (36.9%).  This was followed by data processing, hosting and related activities; web portals with 19,000 workers (15.0%).  Wireless telecommunications activities ranked third among the industries hiring 15,585 workers (12.3%).  Figure 2 shows the distribution of employment by industry group.

 

Among regions, NCR was the top employer with 103,050 employees (81.6%). Workers located in Central Visayas and Central Luzon followed with 11,596 (9.2%) and 3,384 (2.7%), respectively.

The sector’s average employment stood at 155 employees per establishment. Wireless telecommunications activities registered the highest national average at 649 employees per establishment. Three other industries surpassed the sector’s average which composed of wired telecommunications activities; data processing, hosting and related activities; web portals; and television programming and broadcasting activities with 393; 279; and 269 employees per establishment, respectively.

 

Computer programming, consultancy and related activities pay the highest compensation

Total compensation paid by the sector amounted to PHP73.6 billion, an equivalent of PHP584,378 average annual compensation.

By industry group, computer programming, consultancy and related activities paid the highest compensation to its employees amounting to PHP28.0 billion or 38.0 percent of the total. Wired telecommunications activities remunerated its employees with PHP12.5 billion or 17.0 percent to total compensation while workers in wireless telecommunications received payment worth PHP10.1 billion (13.7%). Figure 3 shows the compensation by industry for the sector.

 

Employees in software publishing earn the highest with PHP1.2 million

Software publishing employees were the highest earners in 2014 with an average annual compensation of PHP1.2 million. Wired telecommunications activities and other information service activities followed next with PHP1.1 million and PHP768.9 thousand, respectively. On the other hand, motion picture, video and television programme activities employees received the lowest annual pay of PHP266.9 thousand. Figure 4 shows the five leading industries with highest annual compensation in 2014.

 

By region, NCR-based workers received the highest average annual compensation of PHP653.0 thousand followed by Ilocos Region-based workers with PHP447.4 thousand. Employees from Central Visayas came in third with PHP327.6 thousand average annual remuneration.

Wireless telecommunications activities highest in income and expense

Income generated by the sector in 2014 was estimated at PHP503.7 billion. The top income generators were the following:

  • Wireless telecommunications activities with PHP219.4 billion (43.5%)
  • Wired telecommunications activities with PHP101.8 billion (20.2%)
  • Computer programming, consultancy and related activities with PHP80.1 billion (15.9%).

Most of the income of the sector came from NCR with PHP481.2 billion (95.5%). Central Visayas contributed PHP7.9 billion (1.6%) and Ilocos Region shared PHP3.8 billion (0.8%).

Total expense including compensation reached PHP403.8 billion. More than two-fifths of the total was spent by wireless telecommunications activities with PHP175.3 billion (43.4%). Computer programming, consultancy and related activities incurred the second highest expense of PHP69.0 billion (17.1%), followed by wired telecommunications activities with PHP68.2 billion (16.9%).

Regionwise, NCR incurred the highest espense amounting to PHP383.9 billion (95.1%) while Zamboanga Peninsula recorded the least with PHP17.1 million. Figure 5 shows the distribution of income and expense by industry group in 2014.

 

Income-expense ratio stands at 1.25

The sector generated an income of 1.25 for every peso spent. Among industries, wired telecommunications activities recorded the highest income-expense ratio surpassing the national average with 1.49 income-expense ratio. This was followed by motion picture, video and television programme activities with 1.32. In third place, wireless telecommunications activities reported 1.25 peso income for every peso spent.

 

Value added amounts to PHP218.6 billion

Value added was estimated at PHP218.6 billion. The top three industry groups contributed more than three-fourths of the total value added for the sector with their respective shares as follows: wireless telecommunications activities, PHP88.2 billion (40.4%); computer programming, consultancy and related activities, PHP43.5 billion (19.9%); and wired telecommunications activities, PHP40.7 billion (18.6%).

At the regional level, NCR reported the highest value added contributing 94.3% of the total or PHP206.1 billion. Central Visayas and Ilocos Region followed next with PHP4.7 billion (2.2%) and PHP2.3 billion (1.1%), respectively. Figure 6 shows the value added by industry for the sector.

 

Employees from wireless telecommunications activities are the most productive in 2014

Value added per employee, a measure of labor productivity, was estimated at PHP1.7 million per employee. Among industries, wireless telecommunications activities establishments had the highest average of PHP5.7 million followed by wired telecommunications activities and other information service activities with PHP3.6 million and PHP2.6 million, respectively.

Wired telecommunications activities record largest change in inventories

Change in inventories, defined as the value of ending inventory less the beginning. Among the four industries that recorded positive change in inventories, wired telecommunications activities recorded the highest with PHP101.5 million. Other industries that posted positive change in inventories were the following:

  • Satellite telecommunication activities, PHP9.4 million;
  • Television programming and broadcasting activities, PHP134 thousand;
  • Motion picture, video and television programme activities, PHP109 thousand.

Gross addition to fixed assets accumulates to PHP63.2 billion

Gross addition to fixed assets in 2014 totaled to PHP63.2 billion with the wireless telecommunications activities recording the highest value of PHP43.7 billion (69.1%). Wired telecommunications activities followed with PHP8.0 billion (12.6%) and satellite telecommunications activities with PHP3.7 billion (5.8%).

Government grants PHP225.4 million subsidies

Subsidies are special grants received from the government in the form of financial assistance or tax exemption or tax privilege to aid and develop an industry. Subsidies received in 2014 amounted to PHP225.4 million. Television programming and broadcasting activities topped other industries with grants amounting to PHP182.7 million.

Sales in E-commerce reaches PHP1.5 billion

E-Commerce refers to the selling of products or services over electronic systems. In 2014, sales from e-commerce amounted to PHP1.5 billion. Wired telecommunications activities had the biggest share for the industry amounting to PHP905.1 million or 59.5 percent of the total. This was followed by computer programming, consultancy and related activities and by software publishing, with PHP376.7 million and PHP 156.6 million, respectively.

 


 

TECHNICAL NOTES

 

Introduction

This Special Release presents the preliminary results of the 2014 Annual Survey of Philippine Business and Industry (ASPBI) for the Information and Communication 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.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2014 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website. 

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

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 2014 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 Information and Communication sector with TE of 20 and over was 89.7 percent (903 out of 1,007 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 36 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 input 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 information and communication sector is the sum of the 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 purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; cost of industrial services done by others; cost of non-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 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.