Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles dominated the economy in terms of the total number of establishments

The Annual Survey of Philippine Business and Industry (ASPBI) preliminary results showed that in 2019, the Philippines had a total of 278,181 establishments in the formal sector of the economy.   (Tables A and 1)

Among sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles led in terms of number of establishments with 116,220 or 41.8 percent share to total establishments. This was followed by Financial and Insurance Activities with 38,698 (13.9%) establishments and Accommodation and Food Service Activities with 34,248 (12.3%) establishments. On the other hand, Mining and Quarrying reported the least number of 260 (0.1%) establishments.   (Figure 1 and Table 1)

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles employed the highest number of workers

Total employment reached a total of 7,622,394 workers in 2019. Of the total, 7,536,079 workers (98.9%) were paid employees, while the remaining were working owners and unpaid workers.  (Table A and 1)

By sector, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, which recorded the highest number of establishments in 2019, was also the top sector in terms of the total number of workers.  It employed a total of 1,584,579 workers (20.8%). Mining and Quarrying, on the other hand, had the lowest number of 33,941 (0.4%) workers.  (Figure 2 and Table 1)

The average number of workers was recorded at 27 per establishment in 2019. (Tables A and 2)

Administrative and Support Service Activities sector posted the highest average of 202 workers per establishment, while the least was Other Service Activities sector with an average of 8 workers per establishment. (Table 2)

Administrative and Support Service Activities paid the highest total compensation

In 2019, the total compensation paid by establishments amounted to PhP 2.35 trillion. This translates to an average annual compensation of PhP 312.35 thousand per paid employee. (Tables A and 2)

Among sectors, Electricity, Gas, Steam and Air Conditioning Supply paid the highest compensation at an average of PhP 844.80 thousand annually per paid employee. This was closely followed by Information and Communication with an average annual compensation of PhP 812.66 thousand per paid employee. On the other hand, employees in Other Service Activities were paid the lowest at PhP 125.28 thousand annually per paid employee. (Figure 3 and Table 2)

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles contributed the highest share to total revenue and expense

The total revenue generated by the establishments reached PhP 25.46 trillion, while the total expense incurred amounted to PhP 22.06 trillion in 2019. (Tables A and 1)

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles contributed the highest share to the total revenue of the economy which amounted to PhP 8.96 trillion (35.2%). This sector also shared the highest total expense of PhP 8.40 trillion (38.1%). (Figure 4 and Table 1)

On the other hand, Other Service Activities sector had the lowest contribution to the total revenue and total expense amounting to PhP 49.43 billion (0.2%) and PhP 43.37 billion (0.2%), respectively. (Figure 4 and Table 1)

Real Estate Activities recorded the highest return

Revenue per expense ratio was recorded at 1.15 in 2019. This indicates that for every peso spent, a corresponding revenue of 1.15 pesos was generated.

Among the sectors, Real Estate Activities posted the highest revenue per expense ratio at 1.54, which was higher than the national figure. On the other hand, Transportation and Storage had the lowest revenue-expense ratio of 1.06. (Tables A and 2)

Manufacturing received the highest subsidy

Total subsidy received by establishments in 2019 amounted to PhP 80.96 billion.

Among the sectors that received subsidies, Manufacturing received the highest subsidy of PhP 37.12 billion (45.8%). On the other hand, Mining and Quarrying received the least subsidy of PhP 1.15 million (0.001%). (Table 1)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General
Philippine Statistics Authority

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary economy wide results of the 2019 Annual Survey of Philippine Business and Industry (ASPBI) covering all establishments of the 18 sectors of the economy.

The 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 2019.

The conduct of the 2019 ASPBI is authorized under Republic Act No. 10625 known as the Philippine Statistical Act of 2013 which mandates reorganizing and strengthening of the Philippine Statistical System (PSS), its agencies and instrumentalities.

II. Data collection and Processing

The survey was conducted nationwide in 2020 with the year 2019 as the reference period, except for employment whose reference period is as of 15 November 2019. 

Sample establishments were given various options in accomplishing the survey questionnaire. These were the following:

• online questionnaire available at https://aspbi.psa.gov.ph;
• electronic copy of the questionnaire either in portable document format (.pdf) or Excel (.xlsx) file format; and
• printed copy of the questionnaire.

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2019 ASPBI questionnaires in the provinces.

Data are presented by industry group or 3-digit classification as classified under the 2009 Philippine Standard Industrial Classification (PSIC).

III. Taxonomy of Establishments

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

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, or an 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, or 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 PSA Resolution No. 01 Series of 2017-158 signed on 14 February 2017 was utilized to classify economic units according to their economic activities.

Size of an establishment is determined by its total employment as of the time of visit during the latest Updating of the List of Establishments.

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. Also included 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 31 December 2019 was used for the 2019 ASPBI.

IV. Scope and Coverage

The 2019 ASPBI covered establishments engaged in 18 economic sectors classified under the 2009 PSIC, namely:

1. Agriculture, Forestry, and Fishing (A)

2. Mining and Quarrying (B)

3. Manufacturing (C)

4. Electricity, Gas, Steam, and Air Conditioning Supply (D)

5. Water Supply; Sewerage, Waste Management and Remediation Activities (E)

6. Construction (F)

7. Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (G)

8. Transportation and Storage (H)

9. Accommodation and Food Service Activities (I)

10. Information and Communication (J)

11. Financial and Insurance Activities (K)

12. Real Estate Activities (L)

13. Professional, Scientific and Technical Activities (M)

14. Administrative and Support Service Activities (N)

15. Education (P)

16. Human Health and Social Work Activities (Q)

17. Arts, Entertainment, and Recreation (R)

18. Other Service Activities (S)

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

1. Corporations and partnership

2. Cooperatives and foundations

3. Single proprietorship with employment of 10 and over

4. Single proprietorships with branches

Hence, the 2019 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.

V. Sampling Design

The 2019 ASPBI uses stratified systematic sampling design with 3-digit or 5-digit PSIC as the first stratification variable, depending on the sector, and total employment, which is classified into Micro, Small, Medium establishments (MSME), as the second stratification variable.

Stratified systematic sampling is a process of dividing the population into homogeneous groups, called strata, and then selecting independent samples in each stratum systematically. This method ensures that all important subgroups of the population are represented in the sample and increases precision of “overall” survey estimates.

Domain

The geographic domain of the 2019 ASPBI is region. The industry domain/stratum is 3-digit or 5-digit industry classification, and the employment domain/stratum is the MSME classification. 

Unit of Enumeration

The unit of enumeration for the 2019 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2019 ASPBI was extracted from the preliminary 2019 List of Establishments (LE) as of 05 February 2020.  This frame was used to draw the sample establishments for the survey. The preliminary 2019 LE showed that there were 1,000,524 establishments in operation in the country of which 336,712 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2019 ASPBI.

Estimation Procedure

1) Estimation of Survey Weights

Base Weight

The base weight is the inverse of the probability of selection.  For the ASPBI, the base weight for each domain is given by:

Adjustment Factor

To take into account the non-responding sample establishments, the adjustment factor by region and industry domain is as follows:

Final Weight

The final weight is the product of the base weight and adjustment factor.  That is,

2) Estimation of Total

Total by Industry-Employment Stratum

The estimator for the total of a characteristic in each industry-employment stratum in a region (geographic domain) is given by:

Total by Industry Stratum and Domain

The estimator for the total of a characteristic in each industry stratum in each regional domain is given by:

Total by Employment Stratum and Domain

The estimator for the total of a characteristic in each employment stratum in each regional domain is given by:

Total by Geographic Domain

The estimator for the total of a characteristic in each geographic domain is given by:

Total by Industry Stratum (National)

The estimator for the national total of a characteristic in each industry domain/stratum is given by:

Total by Employment Stratum (National)

The estimator for the national total of a characteristic in each employment domain/stratum is given by:

National Total

The estimator for the national total of a characteristic is given by:

VI. Response Rate

The response rate for all establishments was 84.2 percent (31,138 out of 37,000 establishments). This included receipts of "good" questionnaires, partially accomplished questionnaires, and reports of closed, moved out or out-of-scope establishments. 

Of the total responses, 1,242 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2019 were not included in the generation of statistical tables.

The following table shows the response rate by sector and the number of establishments which responded online.

2019 ASPBI Response Rates for Sample Establishments by Sector

VII. Concepts and Definitions of Terms

Compensation is the sum of salaries and wages, separation/retirement/terminal pay, gratuities, and payments made by the employer on behalf of the employees such as contribution to SSS/GSIS, ECC, PhilHealth, Pag-ibig, etc.

Establishment is an economic unit under a single ownership and control, i. e. under a single entity, engaged in one or predominantly one kind of economic activity at a single fixed location.

Expense is the 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.

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.

Revenue is the 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.

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 special grants in the form of financial assistance or tax exemption or tax privilege given by the government to aid and develop an industry.