Personal services for wellness, except sports activities industry dominates Other Service Activities section

Based on the final results of the 2012 Census of Philippine Business and Industry, there were 10,041 establishments engaged in Other service activities.  Personal services for wellness, except sports activities topped the section with 5,778 establishments or 57.5 percent.  This was followed by laundry services with 1,399 establishments (13.9%). Figure 1 shows the percent distribution of establishments by industry group in 2012.

Most establishments are located in the National Capital Region (NCR)

At the regional level, National Capital Region (NCR) had the most number of establishments engaged in other service activities with 3,861 (38.5%). CALABARZON followed next with 1,695 establishments (16.9%) while Central Luzon had 918 establishments (9.1%) (Table 2).

Personal services for wellness, except sports activities industry generates the highest employment

Employment for the section reached a total of 113,389 in 2012.   Almost all or 93.7 percent were paid employees (106,248). The remaining 7,141 or 6.3 percent were working owners and unpaid workers.

Among industries, personal services for wellness, except sports activities industry had the highest number of employees with 83,682 (73.8%).  The laundry services industry ranked second with 9,362 or 8.3 percent while funeral and related activities industry was third with 8,440 or 7.4 percent. Distribution of employment by industry group for the section is shown in Figure 2.

Region wise, NCR was the top employer in the section with 48,694 employees (42.9%). CALABARZON followed next with 30,717 (27.1%) employees and Central Luzon with 9,002 (7.9%) (Table 2).

Personal services for wellness, except sports activities industry pays the highest compensation

The total compensation paid by Other service activities section amounted to PHP10.9 billion, an equivalent of PHP102,157 average annual compensation per paid employee.

By industry group, personal services for wellness, except sports activities industry paid PHP7.2 billion (66.2%) of the total compensation of the section.   Laundry services industry came in second with PHP1.1 billion (10.3%) while repair of computers and communications equipment industry placed third with PHP816.4 million (7.5%).

At the regional level, labor payments amounting to PHP5.2 billion or 48.4 percent was paid by establishments in NCR (Table 2).   Employers in CALABARZON disbursed PHP3.6 billion to its workers or 33.0 percent while Central Visayas paid PHP656.4 million (6.0%).

Other personal service activities, n.e.c. employees were the highest earners in 2012 with an average annual compensation of PHP476.6 thousand per paid employee followed by employees of repair of computers and communications equipment with PHP205.1 thousand.

By region, employees from CALABARZON received the highest average annual compensation of PHP124.2 thousand per paid employee, followed by SOCCSKSARGEN with PHP122.7 thousand. NCR ranked third with an average annual compensation of PHP112.0 thousand.   Table 4 shows the average annual compensation per paid employee by region.

Total income amounts to PHP47.3 billion

Gross income earned in 2012 by Other service activities establishments reached PHP47.3 billion.  Personal services for wellness, except sports activities industry was the top contributor with income of PHP29.7 billion or 62.8 percent of the total.   This was followed by repair of computers and communications equipment industry with PHP5.5 billion (11.7%).

With respect to regions, NCR produced the highest income amounting to PHP21.0 billion (44.3%) followed by CALABARZON with PHP11.2 billion or 23.6 percent.   Completing the top three was Cagayan Valley with PHP6.4 billion or 13.5 percent of the total income.   The least income generated was registered to ARMM with PHP4.3 million (0.01%).

Total expense reaches PHP37.3 billion

Total expense for operating the industry summed up to about PHP37.3 billion.   Personal services for wellness, except sports activities incurred the highest with PHP23.6 billion (63.2%) followed by repair of computers and communications equipment with payments of PHP3.4 billion (9.1%).   Other personal service activities, n.e.c. spent the least with PHP453.8 million.

Across region, NCR spent the largest as it incurred PHP20.1 billion (53.9%) of the total expense.   CALABARZON followed with PHP9.3 billion (25.0%) while Central Visayas disbursed PHP2.5 billion or 6.7 percent.

Income-expense ratio recorded at 1.27

Income-expense ratio, the income generated per PHP1 expense, was computed at 1.27. Among industries, repair of computers and communications equipment recorded the highest with PHP1.62 income per PHP1 expense. This was followed by other personal service activities, n.e.c. with a ratio of 1.28. Laundry services recorded the least income-expense ratio of 1.10.

Value added amounts to PHP23.4 billion

Value added for the section was estimated at PHP23.4 billion. Personal services for wellness, except sports activities contributed PHP15.0 billion or 64.1 percent of the total value added of the section. Repair of computers and communications equipment had a total value added of PHP3.1 billion or (13.0%) while repair of personal and household goods provided PHP1.8 billion or 7.7 percent. The least value added was accounted for by other personal service activities, n.e.c. with PHP288.2 million (1.2%).

Employees of other personal service activities, n.e.c. industry most productive in 2012

Value added per worker, a measure of labor productivity, was valued at PHP206.6 thousand. Among industries, other personal service activities, n.e.c. industry had the highest average of PHP1.0 million followed by repair of computers and communications equipment with PHP725.5 thousand.

Gross addition to fixed assets totals PHP1.4 billion

Gross addition to fixed assets in 2012 totaled to PHP1.4 billion with the personal services for wellness, except sports activities industry recording the highest amount of PHP884.3 million (64.1%).   Funeral and related activities had PHP345.0 million (25.0%) while the Repair of computers and communications equipment with PHP70.7 million (5.1%).

Total change in inventories stands at PHP250.3 million

Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP250.3 million in 2012.   Among industries, repair of computers and communications equipment industry recorded the highest with PHP125.0 million, while repair of personal and household goods had PHP91.9 million.

Sales from e-commerce post PHP169 thoussand

Sales from e-commerce transaction was recorded only by the repair of computers and communications equipment had PHP169.0 thousand.   The rest of the industries for other service activities did not report any e-commerce transaction in 2012.

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2012 Census of Philippine Business and Industry (CPBI) for Other Service Activities 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 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: 

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

Total response rate for Other Service Activities sector was 89.1 percent (1,608 out of 1,805 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, four establishments responded online and no establishment submitted through e-mail.  

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 This is gross output less intermediate cost. Gross output for the other service activities 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 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