2012 Census of Philippine Business and Industry - Professional, Scientific and Technical Activities for Establishments with Total Employment of 20 and Over: Preliminary Results

Reference Number: 

2014-31

Release Date: 

Wednesday, May 7, 2014

 

Architectural and engineering activities and related consultancy industry leads the sector

Preliminary results of the 2012 Census of Philippine Business and Industry showed that a total of 710 establishments with total employment of 20 and over were engaged in Professional, Scientific and Technical Activities.

Architectural and engineering activities and related consultancy industry had the highest number of establishment with 169 establishments or 23.8 percent.  Advertising closely followed with 148 establishments at about 20.8 percent. Management consultancy activities ranked third with 94 establishments or 13.2 percent. (See Table 1)

   

 

Establishments are concentrated in the National Capital Region (NCR)

At the regional level, NCR had the most number of establishments with 84.6 percent (601). Luzon and Visayas placed far second and third with 6.8 percent and 5.4 percent, respectively (Table 2).

 

Architectural and engineering activities and related technical consultancy industry employs the highest number of workers

Employment in 2012 reached a total of 70,734 workers. Almost all workers (99.3%) were paid employees and the rest were working owners or unpaid workers.

Architectural and engineering activities and related technical consultancy employed almost one-third of the total workers at 30.8 percent equivalent to 21,792 employees.  Advertising followed with 9,640 employees (13.6%).  Ranked third was management consultancy activities with 8,946 employees or 12.6 percent.  Veterinary activities with 317 employees employed the least (Figure 2).

By major island group, NCR was the top employer which generated jobs to 58,216 employees (82.3%). This was followed by rest of Luzon, Visayas and Mindanao areas with 8,744 (12.4%), 2,903 (4.1%) and 871 employees (1.2%).

 

 

Labor payments reach to PHP33.9 billion

The sector paid a total compensation of PHP33.9 billion in 2012, equivalent to an average annual compensation of PHP482.6 thousand per paid employee.

Among the industries, architectural and engineering activities and related technical consultancy paid the highest compensation of PHP10.2 billion comprising almost one third (30.0%) of the total. Management consultancy activities followed next with PHP7.7 billion or 22.6%. Accounting, bookkeeping and auditing activities; tax consultancy ranked third with PHP4.3 billion or 12.7%.  On the other hand, veterinary activities recorded the lowest payment of PHP59.4 million (0.2%).

Among the major island groups, employers in NCR spent the biggest share in total compensation amounting to PHP30.5 billion (90.0%).  Luzon placed second providing an amount of PHP2.5 billion (7.3%) while firms in the Visayas region paid with PHP800.8 million (2.4%).  Workers in Mindanao received the lowest with PHP102.3 million (0.3%).

 

Management consultancy workers are highest-paid employees in 2012

Workers in management consultancy activities establishmentswere the highest-paid employees in the sector receiving an average annual compensationof PHP859.1 thousand per annum surpassing the sector’s average of PHP482.6 thousand per annum.  Employees of accounting, bookkeeping and auditing activities; tax consultancy followed next with PHP581.6 thousand.  On the other hand, those employed in research and experimental development on social sciences and humanities were paid only PHP147.7 thousand (Figure 3).

 

 

Activities of head offices contribute the biggest share in income and expense

Gross income generated by the sector reached PHP137.0 billion in 2012. Activities of head offices had the biggest share with PHP51.3 billion or 37.5 percent of the total. Architectural and engineering activities and related technical consultancy ranked second with PHP26.2 billion (19.2%).  Management consultancy activities ranked third with PHP16.7 billion (12.2%).

By major island group, NCR earned highest income amounting to PHP127.5 billion (93.1).  Income for other island groups were reported as follows: rest of Luzon with PHP6.8 billion (5.0%), Visayas with PHP1.9 billion (1.4%) and Mindanao with PHP761.8 million (0.6%).

Total expenses incurred amounted to PHP104.0 billion in 2012. Being the major contributor in income, activities of head offices had the largest proportion in expense with PHP31.1 billion (29.9%).  This was followed by architectural and engineering activities and related technical consultancy and management consultancy activities with PHP23.9 billion (23.0%) and PHP15.2 billion (14.6), respectively. On the other hand, research and experimental development in information technology incurred the lowest cost of PHP273.7 million (0.3%).  Figure 4 shows the top four industry groups in terms of income and expense.

 

 

By major island group, NCR incurred highest expense amounting to PHP96.2 billion (92.6%).  Expense for other island groups were reported as follows: rest of Luzon with PHP5.6 billion (5.4%), Visayas with PHP1.7 billion (1.6%) and Mindanao with PHP431.7 million (0.4%).

 

Income per peso expense at 1.32 in 2012

In 2012, the income per peso expense for the sector stood at 1.32.  Among industries, activities of head offices recorded the highest and surpassed the national average with 1.65 income per peso expense.  This was followed by industry engaged in legal activities with 1.57.  Technical testing and analysis placed third with 1.36 income per peso expense.

 

Value added amounts to PHP87.5 billion

Value added for the Professional, Scientific and Technical Activities section was estimated at PHP87.5 billion in 2012.

The top three Industries that contributed to the total value added were activities of head offices with PHP40.4 billion (46.2%), architectural and engineering activities and related technical consultancy at PHP13.3 billion (15.2%) and management consultancy activities at 10.3 billion (11.8%).  On the other hand,research and experimental development on social sciences and humanities recorded the least with PHP114.8million (0.1%) (Figure 5).

 

 

Activities of head offices companies has the highest labor productivity

Value added per employee, a measure of labor productivity, was estimated at PHP1.2 million.  Activities of head offices led the section with PHP7.9 million while research and experimental development on social sciences and humanities was the lowest with PHP149 thousand.  Workers from the NCR are more productive among the major island group with PHP1.4 million.

 

Gross addition to fixed assets reaches PHP2.2 billion

Gross addition to fixed assets (capital expenditures less sale of fixed assets) acquired by the sector reached PHP2.2 billion in 2012.

Advertising activities acquired the biggest gross addition to fixed assets with PHP449.3 million.  This was followed by architectural and engineering activities and related technical consultancy with PHP408.0 million and management consultancy activities PHP369.6 million.  On the other hand, research and experimental development in information technology had the least with PHP1.3 million.

Across major island group, NCR recorded the highest gross addition amounting to PHP1.6 billion while Mindanao had the least at PHP34.3 million.

 

Total change in inventories amounts to PHP1.5 billion

Total change in inventories defined as ending less beginning inventory amounted to PHP1.5 billion in 2012. Activities of head offices had the highest change in inventory with PHP1.4 billion or 92.1 percent of the total. Architectural and engineering activities and related technical consultancy followed next with PHP83.2 million. On the other hand, five industries had negative change in inventory amounting to PHP41.4 million.

On the major island group, NCR had the highest change in inventories at PHP 1.5 billion while both rest of Luzon and Visayas had a combined negative change in inventory of PHP5.6 million.

 

Total subsidies received from the government amounts to PHP16.9 billion

Total subsidies received from the government amounted to PHP16.9 billion in 2012.

Only three industry groups received subsidies from the government: Activities of head offices (PHP 16.5 billion); architectural and engineering activities and related technical consultancy (PHP 203.4 million); and research and experimental development on natural sciences and engineering (PHP 179.4 million).

By major island group, only NCR received subsidy from the government.

 

Total assets of the sector value at 1.06 trillion

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 establishment.

In 2012, the total assets for the sector engaged in Professional, Scientific and Technical Activities was valued at PHP 1.06 trillion. Among the major island groups, NCR was the richest having almost a hundred percent (99.5 percent) share to the total resources.

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary results of the 2012 Census of Philippine Business and Industry (CPBI) for Professional, Scientific and Technical 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 2012 CPBI: 

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 90.2 percent collection of questionnaires was achieved only on November 2013.

Total response rate for Accomodation and Food Service Activities sector was 90.2 percent (3,823 out of 4,239 establishments).  This included receipts of "good" questionnaires, partially accomplished questionnaires, reports of closed, moved out or out of scope establishments.

Of the total responses, 19 establishments responded online and one establishment submitted through e-mail.  

For establishments with TE 20 and over, the response rate was 96.6 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 accommodation and food 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; 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

Attachment: 

Tags: 

Industry: 

Real Estate, Renting and Business Activities

Industry 2009 PSIC: 

Professional, Scientific and Technical Activities