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

Based on the final results of the 2010 Annual Survey of Philippine Business and Industry, there were 4,552 establishments engaged in Other service activities. A total of 4,272 establishments or 93.8 percent had a total employment (TE) of less than 20 while 280 or 6.2 percent had TE of 20 and over. Personal services for wellness, except sports activities topped the section with 2,641 establishments or 58.0 percent. This was followed by funeral and related activities with 700 establishments (15.4%). Figure 1 shows the percent distribution of establishments by industry group in 2010.

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

Employment for the section reached a total of 41,345 in 2010. Almost all or 95.7 percent were paid employees (39,580). The remaining 1,765 or 4.3 percent were working owners and unpaid workers.

Among industries, personal services for wellness, except sports activities industry had the highest number of employees with 26,673 (64.5%). The funeral and related activities industry ranked second with 4,972 or 12.0 percent while repair of personal and household goods industry was third with 4,359 or 10.5 percent. Distribution of employment by industry group for the section is shown in Figure 2.

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

The total compensation paid by Other service activities section amounted to PHP4.3 billion, an equivalent of PHP109,279 average annual compensation per paid employee.

By industry group, personal services for wellness, except sports activities industry paid PHP2.5 billion (57.8%) of the total compensation of the section. Repair of personal and household goods industry came in second with PHP500.6 million (11.5%) while funeral and related activities industry placed third with PHP490.8 million (11.3%).

Repair of computers and communications equipment employees were the highest earners in 2010 with an average annual compensation of PHP266.7 thousand per paid employee followed by employees of laundry services with PHP126.1 thousand.

Total revenue amounts to PHP16.9 billion

Gross revenue earned in 2010 by Other service activities establishments reached PHP16.9 billion. Personal services for wellness, except sports activities industry was the top contributor with revenue of PHP9.0 billion or 53.1 percent of the total.  This was followed by funeral and related activities industry with PHP2.7 billion (16.0%).

Total cost reaches PHP11.3 billion

Cost for operating the sector summed up to PHP11.3 billion. Personal services for wellness, except sports activities incurred the highest cost with PHP5.7 billion (50.5%) followed by funeral and related activities with PHP2.0 billion (17.9%).

Revenue-cost ratio stands at 1.5; two industries record the highest returns

Revenue-cost ratio, the revenue generated per PHP1 cost, amounted to 1.5.  Among industries, repair of computers and communications equipment; and personal services for wellness, except sports activities both recorded the highest at 1.6.

Value added amounts to PHP6.8 billion

Value added was estimated at PHP6.8 billion. Personal services for wellness, except sports activities contributed PHP4.0 billion or 59.0 percent of the total value added for the section. On the other hand, repair of computers and communications equipment shared the least with PHP495.4 thousand or 7.3 percent.

Employees of repair of computers and communications equipment industry most productive in 2010

Value added per worker, a measure of labor productivity, was valued at PHP165.2 thousand.  Among industries, repair of computers and communications equipment industry had the highest average of PHP373.6 thousand followed by funeral and related activities with PHP181.3 thousand.

Gross additions to tangible fixed assets totals PHP438.5 million

Gross additions to tangible fixed assets in 2010 totaled PHP438.5 million with the personal services for wellness, except sports activities recorded the highest amount of PHP192.8 million (44.0%).

Total change in inventories values at PHP21.5 million

Change in inventories, defined as the value of ending less the beginning inventory, amounted to PHP21.5 million for the section in 2010.  Personal services for wellness, except sports activities industry and repair of computers and communications equipment reported positive results while the rest had negative results.

TECHNICAL NOTES

Introduction

The 2010 Annual Survey of Philippine Business and Industry (ASPBI) is a continuing activity of the National Statistics Office (NSO) which aims to provide key measures on the performance, levels, structure and trends of economic activities in the entire country for the year 2010.  It is one of the designated statistical activities of the government and as such the survey generates the most critical and essential statistics required for economic planning and analysis. 

The 2009 Philippine Standard Industrial Classification (PSIC) was adopted for the first time in this round.  This is the latest version of the classification of industries in the country released by the NSCB after the 1994 PSIC was amended in 2002.  It conforms with the International Standard Industrial Classification (ISIC) Revision 4 prescribe by the United Nations, but with modifications to suit national situation and requirement.  The PSIC is a statistical classification of all economic activities, designed as a guide and a comprehensive framework for securing uniformity and comparability of both the government and private sectors.

The conduct of the ASPBI is governed by legislative acts and presidential directives, specifically Commonwealth Act No. 591 which was approved on August 19, 1940.

Scope and coverage

The 2010 ASPBI covered establishments engaged in 18 economic sections classified under the 2009 Philippine Standard Industrial classification (PSIC) namely:

• Agriculture, Forestry and Fishing
• Mining and Quarrying
• Manufacturing
• Electricity, Gas, Steam and Air Conditioning Supply
• Water Supply, Sewerage, Waste Management and Remediation Activities
• Construction
• Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles
• Transportation and Storage
• Accommodation and Food Service Activities
• Information and Communication
• Financial and Insurance Activities
• Real Estate Activities
• Professional, Scientific and Technical Services
• Administrative and Support Service Activities
• Education
• Human Health and Social Work Activities
• Arts, Entertainment and Recreation
• Other Service Activities

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

• Corporations and partnership
• Cooperatives and foundations
• Single proprietorships with employment of 10 or more
• Single proprietorships with branches

Like all other establishment surveys conducted by the NSO, the 2010 ASPBI used establishment as the unit of enumeration. It is defined as “an economic unit under a single ownership or control, i.e. under a single legal entity, engaged in one or predominantly one kind of economic activity at a single fixed location.”.

Classification of Establishments

Before the actual selection of samples, the establishments listed in the frame were classified based on economic organization (EO), legal organization (LO), industrial classification, employment size, and geographic location.

Economic organizations relates to the organizational structure or role of the establishment in the organization. The following are the types of economic organization:

• Single establishment is an establishment which has neither branch nor main office
• Branch only is an establishment which has a separate main office located elsewhere
• Establishment and main office, both located in the same address and with branches elsewhere
• Main office only is the unit which controls, supervises and directs one or more establishments of an enterprise
• Ancillary unit other than main office is the unit that operates primarily or exclusively for a related establishment or group of related establishments or its parent establishment and provides goods or services that support but do not become part of the output of those establishments

The legal organization provides the legal basis for ownership of the establishment. The following are the types of legal organization:

• Single Proprietorship - refers to a business establishment organized, owned, and managed by one person, who alone assumes the risk of the business enterprise. The establishment name is that of a person, or it has words such as Owner, Proprietor or Operator
• Partnership  - 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. The establishment name includes words such as Owners , Partners, Limited or LTD., Associates or ASSOCS
• Government Corporation  - is a private corporation organized for private aim, benefit or purpose and owned and controlled by the government.  The establishment name included words such as Corporation or CORP., INCORPORATED or INC
• Private Corporation is a corporation organized by private persons. The establishment name includes words such Corporation or Corp, Incorporated or INC
• Cooperative - the establishment name includes words such as Cooperative or COOP.

The industrial classification of an economic unit is determined by the activity from which it derives its major income or revenue. The 2009  PSIC is utilized to classify units according to their economic activities.  It was approved for adoption by government agencies and instrumentalities through NSCB Resolution No. 2 Series 2010 signed on February 10, 2010.  It will be used for the 1^st time for the 2010 ASPBI.

The 2009 PSIC consists of an alpha character and 5 numeric digits. The alpha character, which represents the major section, is denoted by the characters A to U. They also refer to sector classification.  The first two numeric digits represent the division; the first three numeric digits, the group; the first four digits, the class; and the 5 digits, the sub-class.

The size of the establishment is determined by its total employment (TE). The following are the employment size classification used in the 2010 ASPBI:

• The geographic or physical location of the establishments was classified in accordance with the Philippine Standard Geographic Code (PSGC) as of December 31, 2010 which contains the latest updates on the number of regions, provinces, cities, municipalities and barangays in the Philippines.
  

  The geographic domains of the 2010 ASPBI for establishments with TE of 20 and over are the 17 administrative regions while the whole country serves as the geographic domain for establishments with TE of less than 20.

  Hence, the samples of the 2010 ASPBI with TE of 20 and over shall provide data for 17 administrative regions. For samples with TE of less than 20, the data that will be presented is limited only at the national level.

  Response rate

  A total of 836 or 95.9 percent of sample establishments responded.  These include receipts of “good” questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.  

   

  CONCEPTS AND DEFINITIONS OF TERMS

   

  Economic activity or business is the activity of the establishment as classified under the 2009 Philippine Standard Industrial Classification (PSIC). Generally, the main activity of the establishment is the establishment's principal source of income. If the establishment is engaged in several activities, its main activity is that which earns the biggest income or revenue.

  Total employment is the number of persons who worked in or for this establishment as of November 15, 2010.

  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, workers receiving pure commissions only, and workers on indefinite leave.

  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.

  Revenue is the value of goods, products/by-products sold and/or services rendered to others whether paid in cash or is considered receivable by the establishment. Valuation of products/by products sold should be in producer’s price (ex-establishment), net of discounts and allowances, including duties and charges but excluding subsidies. It also include goods transferred and/or services rendered to other establishment belonging to the same enterprise as the said establishment which should be treated as sales or as if sold to a customer; and revenue from products on a contractual basis from materials supplied by the establishment.

  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.

  Fixed assets - are physical assets expected to have productive lives of more than one year and intended for use and/or being used by the establishment. Included are land, buildings, other structures and land improvements, transport equipment, machinery and equipment, furniture, fixtures, and other fixed assets.

  Book value of tangible fixed assets is the initial value or acquisition cost of tangible fixed assets less the accumulated depreciation.

  Gross additions to tangible fixed assets is the sum of cost of new and used fixed assets acquired during the year, cost of alteration and improvements done by others and cost of fixed assets produced by the establishment less the value of sales of fixed assets during the year.

  Valued added is gross output less intermediate cost.

  Gross output for Arts, Entertainment and Recreation is the sum of the total revenue (less interest income, rent income from land, dividend income, royalty income, franchise income and foreign exchange gains), 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 and water purchased; cost of industrial services done by others; cost of non-industrial services done by others; goods purchased for resale; research and experimental development expense; environmental protection expense; royalty fee; franchise fee and other cost.

  Inventories refer to the stocks of goods owned by and under the control of the establishment as of a fixed date, regardless of where the stocks are located. Valuation should be at current replacement cost in purchaser’s price at the indicated dates. Replacement cost is the cost of an item in terms of its present price rather than its original price.

  Change in inventories ris equivalent to the total value of inventories at the end of the year less the value at the beginning of the year.

  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 or production and to protect it against competition.