Majority of the establishments are private general secondary education

The final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) conducted nationwide, showed that there were 13,819 establishments in the formal sector of the economy that were engaged in Education, excluding public education.

Among industry sub-classes, private general secondary education registered the highest number of establishments at 3,093(22.4%). This was followed by private pre-primary/pre-school education with 2,991 (21.6%) establishments. Private primary/elementary education came third with 2,878 or 20.8 percent. The percentage distribution of Education sector by industry sub-class is shown in Figure 1.

Most workers of the sector are hired by private higher education

A total of 373,336 workers were hired by sector in 2015. Out of the total employment, 365,690 or 98.0 percent were paid employees while the remaining 7,646 or 2.0 percent were working owners and unpaid workers.

Almost half of the workers (47.5%) or 177,138 workers was employed by private higher education establishments. Private general secondary and private primary/elementary education industries came second and third with 94,308 (25.3%) and 43,936 (11.8%), respectively. Figure 2 presents the distribution of employment of the sector by industry sub-class.

The sector recorded a national average of 27 workers per establishment. Private higher education posted an average of 75 workers per establishment which was the highest among industries, followed private general secondary education which also posted above the national average with 30 workers per establishment. The rest of the industry sub-classes of the sector recorded below the national average

Educational support services establishments pay the highest average annual compensation

The sector paid a total compensation amounting to PHP80.9 billion in 2015, translating to an average annual compensation of PHP221,332 per employee.

Among industry sub-classes, private higher education establishments paid the highest compensation of PHP49.2 billion, more than half (60.8%) of the total compensation spent by the sector. Private general secondary education industry spent the second highest compensation of PHP18.5 billion and private primary/elementary education came in third with PHP5.5 billion.

Educational support services industry paid the highest average annual compensation of PHP380.4 thousand per employee. Employees of private higher education were the second highest paid with an annual pay of PHP281.2 thousand. On the other hand, employees of private technical and vocational secondary education for children with special needs received the lowest average annual compensation of PHP65.5 thousand.

Figure 3 shows the average annual compensation per employee of the top five industries of the sector by industry sub-class in 2015.

Top earner and spender are higher education establishments

The sector generated an income of PHP189.9 billion for all establishments in 2015. Private higher education industry earned the highest income of PHP117.9 billion, more than half or 62.1 percent of the total income. Second top earner industry was private general secondary education with PHP36.1 billion or 19.0 percent share. Other private education, n.e.c. industry posted the third highest income of PHP13.9 billion or 7.7 percent.

Total expense incurred by the sector during the reference year amounted to PHP160.8 billion. Private higher education industry, as the highest income generating industry, also spent the largest with PHP97.2 billion (60.4%). At the same time, private general secondary education and other private education, n.e.c. followed the same trend as to income and expense, with an expense of PHP32.1 billion (20.0%) and PHP12.4 billion (7.7%), respectively. Income generated and expense incurred by the top five industry sub-classes of the sector in 2015 is shown in Figure 4.

The highest return is posted by private primary/elementary education for children with special needs

The income generated per peso expense for the sector stood at 1.18. This means that a PHP1.18 income was generated for every peso spent in the operation of the business.

Four out of 13 industries of the sector recorded above the national income and expense ratio and these were the following:

• Private primary/elementary education for children with special needs, 1.23
• Private technical and vocational private secondary education for children with special needs and higher education, 1.21
• Sports and recreation education, 1.19

Private higher education contributes more than half of the total value added

In 2015, value added generated by all establishments of the sector was estimated at PHP126.4 billion.

Industry wise, private higher education accounted for more than half (63.9%) of the total value added of the sector. Less than 40.0 percent of the total value added was distributed among the other industries, bulk of which was contributed by private general secondary education and private primary/elementary education with PHP25.4 billion and PHP7.8 billion, respectively.

Labor productivity stands at PHP338,452 per worker

Labor productivity defined as value added per worker, was at PHP338.5 thousand in 2015.

Among industry sub-classes, educational support services industry earned the highest labor productivity of PHP667.8 thousand per worker. Next highest labor productive industry was sports and recreation education with PHP510.0 thousand per establishment. Completing the top three industries in terms of labor productivity was private higher education with PHP455.5 thousand per establishment.

Figure 5 presents the labor productivity of the top five industries of the sector in 2015.

Gross additions to tangible fixed assets amounts to PHP13.3 billion in 2015

Value of gross additions to tangible fixed assets is defined as capital expenditure less sale of fixed assets. The sector acquired a total of PHP13.3 billion worth of tangible fixed assets in 2015.

More than half or 65.9 percent of the total gross additions to tangible fixed assets was acquired by private higher education with PHP8.7 billion. This was followed by private general secondary education and private pre-primary/pre-school education industries with PHP1.9 billion and PHP1.1 billion, respectively.

Private higher education industry posts the highest change in inventories

Change in inventories is defined as the value of ending less the beginning inventory. The sector recorded a total of PHP11.8 million change in inventory in 2015.

Among industries, private higher education posted the highest changed in inventories of PHP25.5 million. Other industries that recorded more than one million changed in inventories were as follows:

• Private primary/elementary education, PHP14.8 million
• Private pre-primary/pre-school education, PHP8.5 million
• Sports and recreation education, PHP2.2 million
• Private pre-primary/pre-school education for children with special needs, PHP1.1 million

TECHNICAL NOTES

Introduction

This Special Release presents the final results of the 2015 Annual Survey of Philippine Business and Industry (ASPBI) for all Education, except public education (Sector P) establishments.

The 2015 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 2015. The 2015 Survey of Information and Communication Technology (SICT) was undertaken as a rider to this survey.

The survey was conducted nationwide in 2016 with the year 2015 as the reference period of data, except for employment which is as of November 15, 2015.

Establishment Data Management System (EDMS) was still utilized in the decentralized processing of 2015 ASPBI questionnaires in the province as well as the online accomplishment of questionnaire through the PSA website.

Data are presented at the national sub-class or 5-digit 2009 Philippine Standard Industrial Classification (PSIC)..

Legal Authority

The conduct of the 2015 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 2015 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)

The survey was confined to the formal sector of the economy, which consists of the following:  

•  Corporations and partnerships
•  Cooperatives and foundations
•  Single proprietorship with employment of 10 and over
•  Single proprietorship with branches

Hence, the 2015 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).

Frame of Establishments

The frame for the 2015 ASPBI was extracted from the 2015 List of Establishments (LE). The estimated number of establishments in operation in the country in 2015 totaled to 909,786. About 259,386 establishments (29.0% of the total establishments) belong to the formal sector of which 223,821 (86.3%) comprised the establishment frame. This frame was used to draw the sample establishments for the survey.

Unit of Enumeration

The unit of enumeration for the 2015 ASPBI is the establishment. An establishment is defined as an economic unit under a single ownership or control which engages in one or predominantly one kind of activity at a single fixed location. 

Classification of Establishments

An establishment is categorized by its economic organization, legal organization, industrial classification, employment size and geographic location.

Economic Organization refers 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 which owns the establishment. 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 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 of an establishment 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  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 December 31, 2015 was used for the 2015 ASPBI.

Methodology

Sampling Design

Selection of sample establishment for the 2015 ASPBI was done using stratified systematic sampling with 5-digit PSIC serving as industry strata and employment size as the second stratification variable.

For Establishments with TE of Less Than 20

a. Non-Certainty Stratum

    The estimate of the total of a characteristic for the non-certainty employment stratum TE less than 20 in the s^th industry domain was

where:

 s   = denotes the non-certainty employment strata in TE of less than 20

 Xsj = value of the j^th establishment in non-certainty employment stratum in TE of less than 20 in S^th industry domain

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

 W_sj = weight of the j^th establishment in the non-certainty employment stratum of less than 20 in the s^th industry domain

 N_s  = total number of establishments in the non-certainty employment stratum in TE of less than 20 in the s^th industry domain

n_s  = number of sample establishments in the non-certainty employment stratum in TE of less than 20 in s^th domain

b. Certainty Stratum

    The total of a characteristic for the certainty employment stratum in the C^th industry domain was

where:

 c   = denotes the certainty employment strata in TE of less than 20 in the c^th industry

 x_cj = value of the j^th establishment in the certainty employment strata in TE of less than 20 in the c^th industry domain

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

 m_c  = number of establishments in the certainty employment strata in TE of less than 20 in the c^th industry domain

c. Total Estimate for TE of Less Than 20

 For all sections except B and C, national level estimates of the total of a characteristicfor the industry domain was obtain by aggregating the estimates for all employment strata (non-certainty and certainty) in the same industry domain,

where  d  denotes the industry domain.

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 A,C,E,F,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 to 49 and TE 50 TO 99        

      p = 1, 2,..., 18 regions (geographic domains)        

   X_spj = value of the j^thestablishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region  

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

  W_spj = weight of the j^th establishment in the non-certainty employment strata with TE of 20 to 49 and TE 50 to 99 for an industry domain in each region                                                                                                                                                                                      

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

    n_sp = 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 (Establishments under the following: Section B and D, ICT core industries, BPM industries, GOCC's and with TE 100 and over)

       The estimate of the total of a characteristic for the certainty employment stratum in an industry domain in each region

where:

       c = denotes the certainty employment strata in TE of 20 and over        

       p = 1,2,...18 regions (geographic domains)

   X_cpj = value of the j^thestablishment in the non-certainty employment strata in TE of 20 and over for an industry domain in each region 

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

  m_cp = 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'_spj) for the non-certainty employment stratum for the industry domain with TE 20-99 was

Where:

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

Response Rate

Response rate for all Private Education was 92.8 percent (1.232 out of 1,327 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 15 establishments responded online.

Reports of the remaining non-reporting establishments were taken from other available administrative data sources and financial statements from Securities and Exchange Commission (SEC). However, there were establishments which were found to be duplicates, out-of-scope and out of business in 2015.

Limitation of Data

Only the formal sector was covered in the survey.

Concepts and Definitions of Terms

Establishment  is as 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.

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, 2015.

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 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.

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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.

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.

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.

Value added  is gross output less intermediate input. Gross output for Private Education sector is 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 inventory. 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; industrial services done by others; non-industrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee; and other expense.