2012 Census of Philippine Business and Industry - Education for Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2014-40

Release Date: 

Monday, June 16, 2014

 

Secondary education sector has the largest number of establishments

Based on the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) conducted nationwide, a total of 3,541 establishments engaged in Private Education were covered.  As shown in Figure 1, secondary/high school education garnered thehighest number of establishments at 1,510 (42.6%).  Higher education followed next with 1,185 (33.5%).  Pre-primary/pre-school education had the least number of establishments with only 167 establishments (4.7%).

 

 

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

At the regional level, NCR had the highest number of establishments with 755 (21.3%).  CALABARZON and Central Luzon placed second and third with 669 (18.9%), and 447 establishments (12.6%), respectively.   Autonomous Region in Muslim Mindanao (ARMM) had the least with only 46 establishments (1.3%).

 

Establishments providing higher education employ highest number of workers

Employment for the sector reached a total of 242,345.  Out of this total, 239,674 or 98.9 percent were paid employees while the remaining 2,671 or 1.1 percent were working owners and unpaid workers.

Higher education had the most number of employees with 141.9 thousand or 58.5 percent of the total.  Secondary/highschool education followed with 68.5 thousand employees (28.3%).   The least number of employees were employed by pre-primary/pre-school education with 5.1 thousand or 2.1 percent.

 

 

The sector recorded an average number of 68 workers per establishment.  Higher education posted the largest average with 120 employees followed by other education services/educational support services with 51 workers.   Pre-primary/pre-school education, however, ranked last with only 30 workers per establishment (Table 3).

Across regions, NCR had the highest number of employees with 70,431 (29.1%). CALABARZON and Central Luzon, ranked second and third with 36,610 (15.1%) and 23,597 (9.7%) employees respectively, ARMM had the least with only 2,381 employees or 1.0 percent of the total (Table 2).

 

Higher education employees receive the highest average annual compensation

Total compensation paid by Education sector amounted to PHP55.8 billion, translating to an average annual compensation of PHP232.8 thousand per employee.

Across industry group, higher education was paid the highest average annual compensation of PHP265.3 thousand per employee followed by secondary/high school education services with PHP194.1 thousand.  On the other hand, establishments providing pre-primary/pre-school education had the lowest average annual pay of PHP145.1 thousand per employee (Table 3).

NCR had the largest share of compensation paid with 24.0 billion. CALABARZON and Central Luzon followed with 7.5 billion and 4.2 billion, respectively.   ARMM had the least with only PHP208.5 million (0.4%).

 

 

Top earners are establishments engaged in higher education services

Income generated by the sector reached PHP126.2 billion.  Higher education contributed the biggest share with PHP88.3 billion or about 70.0 percent of the total income.  Second biggest income generating industry was secondary/high school education with PHP25.8 billion or 20.4 percent.  Pre-primary/pre-school education generated the least income among the industry groups at PHP1.7 billion or 1.4 percent.

Among regions, NCR generated the highest income of PHP57.9 billion (45.9%), followed by CALABARZON with PHP16.6 billion or 13.1 percent. Central Luzon generated the third highest income with PHP9.7 billion or 7.7 percent of the total income.  ARMM had the income generated with PHP348.2 million.

 

Total Expense reached PHP105.6 billion

Total expense incurred by the sector in 2012 amounted to PHP105.6 billion.  Higher education incurred the highest expense of PHP72.1 billion (68.2%).  Pre-primary/pre-school had the lowest expense of PHP1.4 billion (1.3%).   Figure 4 shows the income generated and expense incurred by Private Education sector by industry group.

Across regions, NCR with the largest number of establishments is also the top spender with PHP47.2 billion (44.7%), followed by CALABARZON with PHP14.7 billion (13.9%), and Central Visayas was the third highest spender with PHP8.1 billion or 7.6 percent. ARMM, with the least number of establishments, had the least expense of PHP316.4 million incurred during its operation in 2012.

 

 

Income per peso expense

The income generated per peso expense stood at PHP1.19.  Among industries, Other education services/Educational support services recorded the highest with PHP1.88, followed by pre-primary/pre-school education services and higher education services with PHP1.24 and PHP1.23, respectively.  Primary/ elementary educational registered the lowest with PHP1.09 income per peso expense.

Davao Region recorded the highest income per peso expense among regions with 1.33  while Eastern Visayas had the least at 1.03

 

Value added amounts to PHP85.1 billion

Value added for the sector was estimated at PHP85.1 billion.  Almost 70.0 percent (PHP59.6 billion) of the total value added was contributed by higher education.  On the other hand, Pre-primary/pre-school education reported the lowest with PHP1.2 billion only.  Figure 5 displays the distribution of value added by industry group.

 

 

NCR had the highest value added recorded at about PHP38.0 billion (44.6%), followed by CALABARZON with PHP10.9 billion (12.8%). Third is Central Luzon with PHP6.9 billion (8.1%).  ARMM recorded the least value added of PHP262.9 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 PHP351.3 thousand for education establishments.   Figure 6 show that higher education services had the highest average of PHP420.2 thousand among industries.  Primary/elementary education workers had the least productive of PHP219.5 thousand.

Region wise, workers in NCR garnered the highest labor productivity with PHP538.9 thousand per employee, Central Visayas is second with PHP338.7 thousand, followed by CAR with PHP337.5 thousand.  Workers in ARMM were the least  productive with PHP110.4 thousand.

 

 

 

Gross Additions to Tangible Fixed Assets totals PHP11.2 billion

The sector acquired a total of PHP11.2 billion worth of gross additions to fixed assets in 2012.  Higher education industry recorded the highest among the industry group with PHP9.4 billion or 83.8 percent of the total.  Followed by secondary/high school education with PHP1.5 billion or 13.2 percent.  Pre-primary/pre-school education had the least gross addition to fixed assets with 87.9 million.

 

Total change in inventories values at PHP72.1 million

Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP72.1 million in 2012 for education sector.

 

Subsidies totaled to PHP1.1 billion

Subsidies or government grants provided to all the industries in the sector reached PHP1.1 billion in 2012.  Secondary/high school education received the highest grant from the government amounting to PHP758.9 million (66.3%), followed by higher education with PHP327.5 million or 28.6 percent.

 

Sales from E-commerce amount to PHP65.2 million

Overall, only two industries had reported sales from E-commerce for Education sector. These were other education services/educational support services with PHP65.2 million and secondary/high school education with PHP71.0 thousand.

Likewise, only NCR and CAR reported sales from E-commerce of PHP63.3 million and PHP1.9 million respectively.

 

Total assets reached PHP311.0 billion

Total assets for Education service activities acquired total assets of PHP311.0 billion in 2012.  Higher education recirded assets valued at PHP199.0 billion the largest among industry group folowed by secondary education services with PHP89.8 billion.  Pre-primary/pre-school education had the least with PHP3.2 billion.

Across regions, NCR had the highest, with PHP164.5 billion (52.9%).  CALABARZON came next, with PHP37.3 billion (12.0%), followed by Central Visayas with PHP24.6 billion or 7.9 percent of the total.  The least assets were acquired by ARMM with PHP566.8 million or 0.2 percent.

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for Private  Education sector for establishments with total employment of 20 and over.

The 2012 CPBI is the forerunner of the 2006 CPBI and one of the designated statistical activities of the former National Statistics Office (NSO) now Philippine Statistics Authority (PSA). Data collected from the census will provide information on the levels, structure, performance and trends of economic activities of the formal sector of the economy for the reference period 2012.  It will also serve as benchmark information in the measurement and comparison of national and regional economic growth.

To provide establishment respondents ease in accomplishing the 2012 CPBI questionnaires, the income and expense account in the Financial Statement of establishment was adopted in the design of 2012 CPBI sectoralquestionnaires. Income and revenue have the same concept in recording financial transaction of establishments while expense is cost incurred on a consumed basis.

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

 

Legal Authority

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

  • Commonwealth Act No. 591 An Act to Create the Bureau of the Census and Statistics to consolidate statistical activities of the government therein which was approved on August 19, 1940. This empowers the Bureau, among other things, to prepare for and undertake all censuses of population, agriculture, industry and commerce.

  • Presidential Decree No. 418 dated March 20, 1974 reconstituted the Bureau of the Census and Statistics as a new agency to be known as the National Census and Statistics Office (NCSO), under the administrative supervision of the National Economic Development Authority (NEDA).

  • Executive Order No. 121 Reorganization Act of the Philippine Statistical System, dated August 4, 1987 renamed the National Census and Statistics Office (NCSO) to National Statistics Office which shall be the major statistical agency responsible for generating general purpose statistics and undertaking such censuses and surveys.

  • Executive Order 352 Designation of Statistical Activities that will generate critical data for decision-making by the Government and the Private Sector, dated July 1, 1996.

  • Executive Order 5 Strengthening the National Statistics Office, dated July 29, 1998.

     

Scope and coverage

The 2012 CPBI was 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

The scope of the ASPBI was confined to “formal sector” only, which consists of the following:.

  • 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 Classificatin (PSIC). 

The initial count of the 2012 List of Establishments (LE), the frame used to draw the sample establishments for the 2012 CPBI, registered a total of 945,000 establishments in operation nationwide in 2012.  Out of this number, 72 percent or 680,400 establishments belong to the informal sector and only 28 percent or 262,800 establishments made up of the formal sector.

Listed below are the 18 economic sectors within the scope of the 2012 CPBI classified under the 2009 Philippine Standard Industrial Classification (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 of Motor Vehicles and Motorcycles (G)

  • Transport 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)

  • Private Education (P)

  • Human Health and Social Work Activities (Q) 

  • Arts Entertainment, and Recreation (R)

  • Other Service Activities (S)

 

Unit of Enumeration

The unit of enumeration for the 2012 CPBI 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 organization (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 (EO=2) is an establishment which has a separate main office located elsewhere.

  • Establishment and main office (EO=3) is one where the establishments 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) This refers to the legal form of the economic entity that 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 propietorship 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 whatever they are stock or non-stock corporations. 

  • 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 2012CPBI: 

TE Code Total Employment TE Code Total Employment
0 1 - 4 5 100 - 199
1 5 - 9 6 200 - 499
2 10 - 19 7 500 - 999
3 20 - 49 8 1000 - 1999
4 50 - 99 9 2000 & Over

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 September 30, 2012 was used for the 2012 CPBI.

 

Sampling Design

Selection of sample establishment for the 2012 CPBI 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.

 

Response Rate

Field operations of the 2012 CPBI were scheduled from April to July 2013. As of July 2013, only 61.2 percent of the total sample questionnaires were received at the Central Office. About 93.0 percent collection of questionnaires was achieved only on November 2013

Total response rate for Private Education sector was about 94.0 percent (4,447 out of 4,733 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 58 responded online, and zero submitted through e-mail.

For establishments with TE 20 and over, the response rate was about 93.0 percent.

 

CONCEPTS AND DEFINITIONS OF TERMS

 

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, 2012.

Paid employees are all persons working in the establishment and receiving pay, as well as those working away from the establishment paid by and under the control of the establishment. Included are all employees on sick leave, paid vacation or holiday. Excluded are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.

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

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.

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

Value added is gross output less intermediate input. Gross output for Private Education is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income and franchise income), capital expenditures of fixed assets produced on own account and change in inventories. Intermediate input is equal to the sum of the following cost items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity 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; payouts and other cost.

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.

Total assets are resources including land owned and/or controlled by the establishment as a result of past transactions and events from which future economic benefits are expected to flow to the establishments.

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.


Source:   Philippine Statistics Authority - National Statistics Office
               Manila, Philippines

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