2020 Annual Survey of Philippine Business and Industry (ASPBI) - Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles Sector: Preliminary Results

Retail sale of other goods in specialized stores industry group accounted for the majority of establishments

The 2020 Annual Survey of Philippine Business and Industry (ASPBI) preliminary results showed that a total of 93,537 establishments in the formal sector of the economy were engaged in wholesale and retail trade; repair of motor vehicles and motorcycles. This number decreased by -19.9 percent compared with the 116,704 establishments in 2019. (Tables A and 1)

Establishments engaged in retail sale of other goods in specialized stores reported the highest number of establishments of 25,149 or 26.9 percent of the total. Retail sale of other household equipment in specialized stores ranked second with 11,018 establishments (11.8%) and retail sale in non-specialized stores came in third with 9,026 establishments (9.6%). (Table 1 and Figure 1)

By region, most establishments engaged in the sector were concentrated in the National Capital Region (NCR) with 25,252 establishments (27.0%). This was followed by its neighboring regions, CALABARZON with 13,844 establishments (14.8%) and Central Luzon with 8,394 establishments (9.0%). (Table 3)

Retail sale in non-specialized stores industry employed the highest number of workers

The sector employed a total of 1,107,576 workers, a decline of -29.8 percent compared with the 1,577,053 workers in 2019. (Tables A and 1)

Paid workers accounted for 98.6 percent of the total employment or 1,092,093 workers, while the remaining were working owners and unpaid workers. (Table 1)

Among the industry groups, retail sale in non-specialized stores employed the highest number of workers of 197,771 (17.9%). Retail sale of other goods in specialized stores and retail sale of other household equipment in specialized stores followed with 173,695 (15.7%) and 130,031 workers (11.7%), respectively. (Table 1 and Figure 2)

Among the regions, NCR led in terms of employment, hiring 358,789 workers (32.4%). This was followed by CALABARZON with 126,996 workers (11.5%). Central Visayas ranked third with 97,611 workers (8.8%). (Table 3)

The average number of workers for the sector was recorded at 12 workers per establishment. (Tables A and 2)

Industry group-wise, wholesale on a fee or contract basis posted the highest average of 34 workers per establishment. The lowest average of 6 workers per establishment was registered in retail sale of food, beverages and tobacco in specialized stores. (Table 2)

Region-wise, five regions surpassed the sector average. Both NCR and Davao Region recorded the highest average of 14 workers per establishment. This was followed by Central Visayas, Zamboanga Peninsula, and Northern Mindanao which registered an average of 13 workers per establishment. (Table 4)

Figure 2. Distribution of Employment for Wholesale and Retail Trade;
Repair of Motor Vehicles and Motorcycles Sector
by Industry Group: Philippines, 2020

Retail trade not in stores, stalls or markets industry group paid the highest average annual compensation

The sector paid a total compensation of PhP 220.08 billion to its employees in 2020, a -30.8 percent decline from PhP 317.88 billion in 2019. This translates to an average annual compensation of PhP 201.52 thousand per paid employee. (Tables A, 1, and 2)

Retail sale of other goods in specialized stores industry paid the highest total compensation, amounting to PhP 44.73 billion (20.3%). Employees under non-specialized wholesale trade received the lowest compensation, amounting to PhP 187.72 million (0.1%). (Table 1)

Employees in NCR received the highest compensation, amounting to PhP 102.45 billion (46.6%). The lowest compensation was paid to employees in the Autonomous Region in Muslim Mindanao (ARMM), amounting to PhP 129.34 million (0.1%). (Table 3)

Among the industry groups, retail trade not in stores, stall and markets industry paid the highest average annual compensation of PhP 444.50 thousand per paid employee. This was followed by wholesale of household goods paying PhP 301.01 thousand per paid employee and wholesale of machinery, equipment and supplies paying PhP 292.42 thousand per paid employee. (Tables A and 2, and Figure 3)

At the regional level, NCR registered the highest average annual compensation of PhP 286.91 thousand per paid employee. CALABARZON and Davao Region ranked second and third, paying an average annual compensation of PhP 201.05 thousand and PhP 173.42 thousand per paid employee, respectively. (Table 4)

Retail trade in non-specialized stores contributed the biggest share to total revenue and expense

The total revenue earned by the sector was estimated at PhP 5.29 trillion in 2020, a decreased of -40.7 percent from the PhP 8.91 trillion generated in 2019. On the other hand, the sector incurred a total expense of PhP 5.05 trillion. This is -39.6 percent lower than the PhP 8.36 trillion reported expense in 2019. (Tables A and 1)

The top three industry groups in terms of revenue and expense for the sector were as follows:

1. Retail sale in non-specialized stores with total revenue and total expense amounting to PhP 1.08 trillion (20.3%) and PhP 1.05 trillion (20.8%), respectively;
2. Retail sale of other goods in specialized stores with revenue of PhP 840.18 billion (15.9%) and expense of PhP 760.52 billion (15.1%); and
3. Wholesale of food, beverages and tobacco with revenue amounting to PhP 558.31 billion (10.6%) and expense amounting to PhP 529.16 billion (10.5%). (Table 1 and Figure 4)

Across the country, the top three regions in terms of revenue and expense were as follows:

1. NCR with revenue of PhP 2.01 trillion (38.0%) and expense of PhP 1.90 trillion (37.6%);
2. CALABARZON with PhP 682.68 billion (12.9%) revenue and PhP 662.43 billion (13.1%) expense; and
3. Central Luzon with revenue amounting to PhP 433.94 billion (8.2%) and expense amounting to PhP 419.57 billion (8.3%). (Table 3)

The generated revenue per peso expense by the sector stood at PhP 1.05 in 2020. Among the industries, sale of motor vehicle parts and accessories industry recorded the highest revenue per peso expense of PhP 1.19. (Tables A and 2)

Five regions exceeded the revenue per peso expense ratio at the national level. These were Cagayan Valley, PhP 1.23; ARMM, PhP 1.09; Cordillera Administrative Region (CAR), PhP 1.07; and NCR and MIMAROPA Region with registered revenue per peso expense ratio of 1.06. (Table 4)

Government provided a total of PhP 140.50 million subsidies

Total subsidies received from the government in 2020 amounted to PhP 140.50 million, lower than the PhP 4.10 billion subsidies in 2019. (Tables A and 1)

Retail sale of other goods in specialized stores received the highest subsidies amounting to PhP 58.20 million (41.4%), while retail sale of food, beverages and tobacco in specialized stores recorded the lowest subsidies of PhP 4.07 million (2.9%) from the government. (Table 1)

At the regional level, NCR received the highest subsidies amounting to PhP 48.38 million (34.4%). The lowest subsidies were granted to Central Visayas amounting to PhP 577.00 thousand (0.4%).(Table 3)

TECHNICAL NOTES

I. Introduction

This Special Release presents the preliminary results of the 2020 Annual Survey of Philippine Business and Industry (ASPBI) for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles establishments (Sector G).

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 2020.

The conduct of the 2020 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 2021 with the year 2020 as the reference period, except for employment whose reference period is as of 15 November 2020.

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

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

The Establishment Data Management System (EDMS) was utilized in the decentralized processing of 2020 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 the main office.

Legal Organization refers to the legal form of the economic entity which owns the establishment. An establishment may be a 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 2020 was used for the 2020 ASPBI.

IV. Scope and Coverage

The 2020 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 2020 ASPBI covered only the following economic units:

1. All establishments with total employment (TE) of 10 or more; and
2. 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 2020 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, calledstrata, 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 2020 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 2020 ASPBI is the establishment.

Sampling Frame of Establishments

The sampling frame for the 2020 ASPBI was extracted from the preliminary 2020 List of Establishments (LE) as of 06 January 2021. This frame was used to draw the sample establishments for the survey. The preliminary 2020 LE showed that there were 1,000,440 establishments in operation in the country of which 336,205 establishments comprised the sampling frame or the establishments that are within the scope and coverage of the 2020 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:

where:

w_hk = weight of the kth establishment in the h^th stratum
N_h = total no. of establishments in the h^th stratum
n_h = total no. of sample establishments in the h^th stratum
h = refers to the industry-employment stratum

Adjustment Factor

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

where:

A_s = adjustment factor for industry domain s
X_1k = eligibility status of the k^th sample establishment (1 if eligible, 0 otherwise)
X_2k = responding status of the k^th sample establishment (1 if responding, 0 otherwise)

Final Weight

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

where:

w'_hk = final weight of the kth sample establishment in stratum h
w_hk = weight of the k^th establishment in the h^th stratum
A_s = adjustment factor for industry domain s

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:

where:

y_hk = value of the k^th sample establishment in stratum h
w'_hk = final weight of the kth sample establishment in stratum h

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:

where:

h_i = number of employment strata for industry stratum i

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:

where:

h_j = number of industry strata for employment stratum j
r = subscript for geographic domain r

Total by Geographic Domain

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

where:

I = total number of industry strata in geographic domain r
J = total number of employment strata in geographic domain r

Total by Industry Stratum (National)

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

where:

R = total number of regions

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

Response rate for all Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector was 86.2 percent (7,352 out of 8,525 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, 330 establishments responded online.

Reports of establishments which were found to be duplicate of another establishment, out-of-scope and out of business in 2020 were not included in the generation of statistical tables.

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.

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