Based from the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI), the total number of establishments with Total Employment (TE) of 20 and over in the formal sector of the economy was recorded at 35,835.

Across regions, 40.2 percent of establishments in 2016 were located in the National Capital Region (NCR) with a total of 14,414 establishments. CALABARZON with 5,116 establishments or 14.3 percent share ranked second. Central Luzon with 3,311 establishments (9.2%) and Central Visayas with 2,842 establishments (7.9%) placed third and fourth, respectively. Autonomous Region in Muslim Mindanao (ARMM) recorded the least count numbering to only 103 establishments or 0.3 percent share to total.

Figure 1 shows the distribution of establishments with TE of 20 and over by region.

Based from the preliminary results of the 2016 Annual Survey of Philippine Business and Industry (ASPBI), total number of establishments with Total Employment (TE) of 20 and over in the formal sector of the economy in Davao Region was recorded at 1,665. This is 11 percent greater than the number of establishments posted in 2015.

Top three industries in the region were the following: Wholesale and Retail Trade; Repair of Motor Vehicles, Motorcycles and Personal and Household Goods with 492 establishments comprising 30% of the total number of establishments in the region; Accommodation and Food Service Activities with 248 establishments comprised 15% of the total number of establishments; and Manufacturing, 210 establishment or 13% of the total number of establishments.

On the other hand, industries in Electricity, Gas, Steam and Air Conditioning Supply and Mining and Quarrying in the region reported less than 10 establishments each. Figure 2 shows the distribution of establishments with TE of 20 and over by sector in Davao Region.

As of November 15, 2016, the recorded total number of persons who worked in the establishments with Total Employment (TE) of 20 and over in the formal sector of the economy in Davao Region was 186,610. It grew about 9 percent compared to 171,462 employees in 2015.

Agriculture, Forestry and Fishing recorded the highest number of workers at 38,855, accounting for 21 percent of the total employment. Ranking second was Administrative and Support Service Activities with 31,297workers or 17 percent share to total employment. Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles ranked third with 28,564 workers or 15 percent share to total. Other Service Activities recorded the least share in number of workers with 426 workers or a mere 0.2 percent of the total employment. Figure 3 shows the distribution of total employment for establishments with TE of 20 and over by sector in Davao Region.

On the average, there were 112 employees per establishment. Among Mindanao regions, SOCCKSARGEN posted the highest number of employee per establishment at 157. On the other hand Zamboanga posted the lowest at 84 employees per establishment.

Total compensation paid to employees comprising of payment for gross salaries and wages of employees and other benefits paid by the establishment amounted to PHP37.3billion.

Agriculture, Forestry and Fishing contributed 23 percent of the total compensation paid in 2016 at PHP8,618 million in total. This was followed by Administrative and Support Service Activities paying PHP5,747 million (15%) worth of compensation. Other Service Activities with PHP42 million or 0.1 percent paid the least compensation to its employees. Figure 4 shows the distribution of total compensation for establishments with TE of 20 and over by sector in Davao Region.

Average monthly compensation per employee in 2016 was estimated at PHP16,920. Employees in Electricity, Gas, Steam and Air Conditioning Supply sector received the highest average monthly pay of PHP57,627 in 2016, followed by employees in Professional, Scientific and Technical Activities with average monthly compensation of PHP30,759. Employees in Other Service Activities Accommodation and Food Service and Mining and Quarrying received less than 9 thousand monthly average compensation: PHP8,728, PHP8,650 and PHP7,876, respectively.

Total income earned by establishments in the region in 2016 amounted to PHP369 billion. About 11 percent increase from 2015.

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, the top income generator, accounted for 33 percent of total income at PHP124 billion. Manufacturing ranked second, earning PHP99 billion or 27 percent share to total. Meanwhile, sectors that contributed less than half percent share each to total income in 2016 were: Information and Communication, PHP1.6 billion or 0.4 percent; Arts, Entertainment and Recreation, PHP1.5 billion or 0.4 percent; and Other Service Activities, PHP0.2 billion or 0.1 percent. Figure 5 shows the distribution of total income for establishments with TE of 20 and over by sector in Davao Region.

Total cost incurred in business operations of establishments in the region with TE of 20 and over amounted to PHP332 billion in 2016. This is a 12.8 percent increase from the PHP294 billion total cost incurred in 2015.

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles, the highest spender, incurred PHP118 billion or 36 percent of the total expense. Manufacturing ranked second with PHP89.3 billion or 27.0 percent of the total, distantly followed by Agriculture, Forestry and Fishing spending PHP31.4 billion (9%). Arts, Entertainment and Recreation and Other Service Activities spent less than PHP1 billion with PHP714 million and PHP190 million, respectively. Figure 6 shows the total cost incurred for establishments with TE of 20 and over by sector.

Value added generated by establishments in the region with TE of 20 and over in 2016 stood at PHP95 billion. An 11 percent increase compared to value added of PHP 85 billion posted by the establishments with TE of 20 and over in 2015

Manufacturing generated PHP23 Billion or 24 percent share to total, the highest among the sectors. Agriculture, Forestry and Fishing and Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles ranked second and third, generating PHP12.2 billion and PHP12 billion, respectively. On the other hand, Information and Communication (PHP798 million) and Other Service Activities (PHP76 million) contributed less than one billion pesos total value added.

The ratio of value added to employment, a measure of simple labor productivity, was estimated at PHP510.4 thousand in 2016.

Electricity, Gas, Steam and Air Conditioning Supply reported to be the most productive sector in 2016, with value added per worker of almost PHP4.9 million. Arts, Entertainment and Recreation was the second most productive sector, generating PHP1.4 million value added per worker, followed by Manufacturing , Professional, Scientific and Technical Activities, and Water Supply; Sewerage, Waste Management with PHP 1.24 million, PHP 1.23 million and PHP 1.20 million value added per worker, respectively. Figure 7 shows the Labor Productivity for establishments with TE of 20 and over by sector.

Total subsidies received by establishments in the region with TE of 20 and over amounted to PHP1 billion in 2016.

Only 6 out of the 18 industry sectors in the region received subsidies from the government. Mining and Quarrying receiving almost 72 percent of the total subsidies received (PHP724 million). Electricity, Gas, Steam and Airconditioning Supply came in second with PHP170 million.

Total sales from e-commerce transactions in 2016 in the region was estimated at PHP206 million. This is four times the value of e-commerce sales (PHP49 million) reported in 2015.

Only 2 sectors reported to have sales through e-commerce transactions: Manufacturing (PHP108 million) and Accommodation and Food Service Activities (PHP98 million). Note that in 2015 only Accommodation and Food Service Activities reported to have e-commerce transactions in 2015.

(Signed)

RUBEN D. ABARO, JR

OIC – REGIONAL DIRECTOR