Employment in trade establishments up by 3.9%
- Workers engaged in the wholesale and retail trade* (WRT) activities registered to total employment of 501,695 in 8,589 establishments in the country. This was an increase of 8.5 percent from the employment of 462,553 in 2015 from 8,332 businesses in the sector.
Retail sale in the non-specialized stores generated the most employment with 141,443 trade workers or 28.2 percent of the total national employment. Wholesale of householdgoods followed with 61,973 employees or 12.4 percent share.
Figure 1. Percentage Distribution of WRT Workers by Sector Groups
and 4-Digit PSIC Sub-Sectors, Philippines: 2016
- Two in five (41.8 percent) trade establishments were situated in the National Capital Region (NCR) and one in ten (10.6 percent) were in CALABARZON area. Central Visayas (7.7 percent), Central Luzon (7.6 percent) and Davao (5.7 percent) regions also had fair shares in the number of wholesale and retail businesses.
Cordillera region contributed 0.8 percent of the trade establishments, following ARMM in having the least number of establishments with 0.1 percent share.
Figure 2. Top WRT Sectors by Average Employment
per Establishment, Philippines: 2016
- As top employers, retail sale in nonspecialized stores and wholesale trade of household goods recorded high mean employment per establishment with 89 workers and 83 workers, respectively.
NCR had 66 workers per WRT establishment, while trade shops in Western Visayas and SOCCSKSARGEN both had an average of 61 employees. Wholesale and retail establishments in CAR had 52 employees on the average.
Compensation of WRT workers at PHP 97.8 billion
- Paid employees remained dominant among WRT workers with 99.6 percent share to total employment in 2016. This resulted to a minimal decline of share to total employment from 99.7 percent in 2015 but an increase of 38,559 more paid workers in a year’s span.
A total of PHP 97.8 billion was spent by WRT sector to compensate its 499,813 paid employees in 2016. This was a 4.0 percent increase from 2015 with 94.0 billion compensation to 461,254 paid workers engaged in the trade.
The top employer in WRT sector, retail sale in non-specialized stores, spent PHP 21.2 billion for the compensation of its 141,173 paid workers. This was followed by establishments engaged in wholesale of household goods with PHP 18.5 billion compensation, and wholesale of machinery, equipment and supplies with PHP 9.7 billion.
Establishments in CAR spent an aggregate amount of PHP 415.3 million to their paid wholesale and retail trade workers in 2016. This resulted to an average annual compensation per employee of PHP 109,336. Trade shops in NCR had the highest expenses for compensation with PHP 61.1 billion for all 237,431 paid employees.
Income in wholesale and retail activities exceed expenses by 5.0 percent
- Wholesale and retail establishments generated PHP 2.9 trillion total income in 2016, an increase of 7.4 percent from PHP 2.7 trillion annual income in 2015.
NCR trade stores earned PHP 1.6 trillion or 56.1 percent of the total national income. Aggregate income from establishments in CALABARZON came second with PHP 289.9 billion, followed by Central Luzon with PHP 179.6 billion and Central Visayas with PHP 179.5 billion.
Retail sale in non-specialized stores contributed the biggest income share with 22.2 percent or about PHP 634.9 million. Income from wholesale of household goods and sale of motor vehicles came next with PHP 461.6 billion (16.1 percent) and PHP 336.5 billion (11.8 percent), respectively.
Expenses hit the PHP 2.7 trillion mark in 2016, an increase of about 181.1 billion or 7.1 percent from a year ago. Amount spent for compensation of workers only made up 3.6 percent of the industry’s spending.
Among sub-sectors in the wholesale and retail trade, the top contributors to expenses in the industry followed the same pattern as with income: retail sale in non-specialized stores spent PHP 608.3 billion (22.3 percent), wholesale of goods with PHP 435.7 billion (16.0 percent) and sale of motor vehicles with PHP 319.2 billion (11.7 percent).
Establishments in NCR (55.8 percent), CALABARZON (10.2 percent), Central Luzon (6.3 percent) and Central Visayas (6.2 percent) were also the top spenders as these were the biggest gainers.
Figure 3. Top WRT Sectors by Income per Expense, Annual Income and Expense,
- However, activities in maintenance and repair of motor vehicles earned the greatest gain with an income per expense ratio of 1.24. This was followed by retail sale of cultural and recreation goods in specialized stores with 1.10 income per expense and retail sale of information and communications equipment with 1.09 income per expense.
Figure 4. Income per Expense by Region,
Non-specialized wholesale trade registered the least income per expense proportion of 1.01 in 2016. It was followed by other sectors such as: wholesale of food, beverages and tobacco; retail sale of automotive fuel in specialized stores; and wholesale of agricultural raw materials and live animals, all with 1.03 income per expense.
Among regions, Central Visayas, Caraga and NCR recorded income per expense of 1.06, all were higher than the national figure (1.05). Western Visayas, Negros Island and Davao regions’ income per expense were at par with the country’s ratio. Establishments in CAR registered an income per expense of 1.04, lower than the national figure.
Labor productivity slightly up by 0.7% at 573.3 million
- Value added of trade establishments in 2016 was PHP 287.6 billion, an increase of 9.2 percent from 2015 with PHP 263.4 billion. This translated to labor productivity of PHP 573.3 million per worker in 2016, an improvement of 0.7 percent from a year ago.
Top wholesale and trade industries in terms of value added include retail sale in nonspecialized stores (PHP 59.0 billion), wholesale of household goods (PHP 51.6 billion) and sale of motor vehicles (PHP 29.1 billion).
Sale of motor vehicles and wholesale of household goods also registered among the most labor productive sectors with PHP 1.0 million and PHP 832,463 value added per worker, respectively.
However, retail sale in non-specialized stores’ productivity was overtaken by other sectors, being the most labor-intensive trade activity. Other specialized wholesale activities emerged as another most labor productive with PHP 882,304.
Stores in NCR (PHP 176.1 billion), CALABARZON (PHP 24.2 billion) and Central Visayas (PHP 18.3 billion) produced the most value added in 2016. However, the most labor productive WRT establishments were in NCR (PHP 740,798), CALABARZON (PHP 569,764) and Central Luzon (PHP 476,561).
Electronic sales in wholesale and retail generates PHP 2.1 billlion
- WRT establishments improved its gross margin by 5.6 percent with PHP 449.4 billion in 2016. Wholesale of household goods and retail sale in non-specialized stores contributed PHP 97.2 billion and PHP 97.1 billion, respectively, to the national figure.
On the other hand, declines in additions to tangible fixed assets (PHP 18.9 billion) and change in inventories (PHP 31.0 billion) were estimated at 2.9 percent and 3.5 percent, respectively.
Negative change in inventories at the end of 2016 were noted in several sectors in the wholesale and retail trade: maintenance and repair of motor vehicles (PHP 2.3 million); wholesale of machinery, equipment and supplies (PHP 465.9 million); other specialized wholesale (PHP 3.1 billion); retail sale food, beverages and tobacco in specialized stores (PHP 664.0 million); and retail sale of automotive fuel in specialized stores (PHP 112.3 million).
Only sectors in wholesale of agricultural raw materials and live animals and wholesale of food, beverages and tobacco received subsidies from the government. The total subsidy given was PHP 692.6 million for the wholesale and retail industry in 2016. WRT establishments in these sectors received subsidies in regions except CAR, ARMM and the former Negros Island Region (NIR).
E-commerce transactions of wholesale and retail of goods boosted sales by PHP 2.1 billion. However, this was a decline of 55.2 percent of electronic sales from 2015 with PHP 4.6 billion. These e-commerce sales were only realized in stores situated in NCR.
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.
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 for the establishment as of November 15, 2016.
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 is the sum of 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. Valuation is at producer prices (ex-establishment) net of discounts and allowances, including duties and taxes but excluding subsidies.
E-commerce refers to the selling of products or services over electronic systems such as Internet Protocol-based networks and other computer networks. Electronic Data Interchange (EDI) network, or other on-line system. Excluded are orders received from telephone, facsimile and e-mails.
Expense refers to 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.
Value added is gross output less intermediate input. Gross output for Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycle sector is the sum of the total income (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 expense items: materials and supplies purchased; fuels, lubricants, oils and greases purchased; electricity purchased, water purchased; industrial services done by others; nonindustrial services done by others (less rent expense for land); goods purchased for resale; research and development expense; environmental protection expense; royalty fee; franchise fee and other expense.
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
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.