Employment in CAR Establishments slightly up by 3.3%
- Number of businesses in the region with total employment 20 and over decreased to 373 establishments from 414 establishments in 2016. This indicated the downgrading of some businesses in terms of number of workers.
- Decrease of larger establishments, however, did not hamper the growing number of workers from these businesses. Employment increased by 3.3 percent, from 48,146 workers in 2016 to 49,4852 workers in 2017.
- Paid employees remained dominant in the total employment with 99.8 percent share in 2017. Similarly, paid employees increased in the same rate as the total employment from previous year. Excluded from the paid workers are consultants, home workers, receiving pure commissions only, and workers on indefinite leave.
- CAR employment and number of establishments contributed to only 1.1% of the national total in 2017. The region ranked 11th and 14th among regions in total employment and establishments, respectively.
Figure 1. Average Employment per Establishment, CAR: 2016-2017
- Despite the minimal share of CAR to the national data, it was among the regions with highest average employment per establishment. CAR ranked 5th with 134 workers per establishment, only a worker short from the national average of 135 workers per establishments. This was also an upgrade from 117 workers per establishments in 2016 or an increase of 14.5 percent (Figure 1).
Compensation of CAR workers at PHP 14.1 billion
- CAR establishments had a total expense of PHP 100.5 billion in 2017. This was an increase of expenditures by 19.0 percent from PHP 84.5 billion in 2016.
- Compensation of workers shared 17.0 percent of the total expense with PHP 17.1 billion while the rest were spent for other costs such as taxes, job contracts, goods, fees and other operation expenses.
- Expenses of compensation for workers increased by 27.2 percent from the previous year’s expenses of PHP 13.4 billion. CAR was 9th among regions in terms of establishments spending on workers pay and other benefits.
Figure 2. Annual and Monthly Average Compensation per Paid Worker, CAR: 2016-2017
- The regional average compensation per worker in the larger establishments was PHP 342,949 per year in 2017, or about PHP 28,579 per month. This was an improvement by 23.1 percent from the 2016 figure of PHP 278,543 annual compensation, or PHP 23,212 monthly on the average (Figure 2).
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In 2017, CAR’s average compensation was also better than the national average of PHP 322,948 annually or PHP 26,912 monthly. Cordillera’s figure exceeded that by 6.2 percent and ranked 2nd among regions.
CAR businesses nearly twice the total expenses in 2017
- Income generated in 2017 by CAR establishments reached PHP 237.1 billion, an increment of 52.4 percent from PHP 155.6 billion in 2016.
- Businesses in the Cordilleras recorded income per expense proportion of 2.36, indicating that the revenue gained exceeded nearly twice the expenses of their operations in 2017. This was 28.3 percent higher than the figure a year ago.
- The income per expense ratio of CAR even exceeded that of the national ratio with only 1.18, or gaining only 18 percent more than all establishments’ expenses. This placed the Cordilleras to the top among regions’ revenue generation performance in terms of income per expense (Figure 3).
- The tangible fixed assets of these establishments in the region, on the other hand, recorded a gross addition of PHP 2.2 billion. This was a very conservative figure compared to the previous years’ gross addition of PHP 26.8 billion.
Figure 3. Income per Expense of Establishments, CAR: 2016-2017
PHP 3.6 million labor productivity for every worker
- Establishments in CAR recorded a value added of PHP 180.1 billion in 2017. This figure was an improvement of 77.2 percent from 2016 data of PHP 101.7 billion, and posted a 3.3 percent contribution to the national total.
- The above value added data translated to the region’s labor productivity, or the value added per total employment, of PHP 3.6 million per worker in the Cordilleran establishments. This was an increase of 71.6 percent from 2016, with PHP 2.1 billion value added per total employment in the region (Figure 4).
- CAR’s labor productivity almost quadrupled the national record, with PHP 1.0 million in 2017, and placed the Cordilleras again on top among regions in the country.
Figure 4. Value Added per Total Employment, CAR: 2016-2017
- The sectors of Agriculture, Forestry and Fishing (A), Mining and Quarrying (B), Electricity, Gas Steam and Air-Conditioning Supply (D), Water Supply; Sewerage, Waste Management and Remediation Services (E) and Construction (F) in the region incurred intermediate expense of PHP 32.7 billion in 2017. This was up by 16.8 percent from 2016 with PHP 28.0 billion.
- The value of output from the above sectors, however, were recorded at PHP 208.9 billion in the same year. This was 68.2 percent higher than a year ago. The value of output of these establishments in CAR comprised 3.3 percent of the national total, and it ranked 7th among regions.
E-Commerce sales reduced to nearly half
- Online transactions of CAR businesses in 2017 reached PHP 37.8 million, which fell far shorter by 46.3 percent than the e-commerce sales of PHP 70.3 million in 2016. This left the region at the second bottom among regions under this indicator.
- Businesses in the Cordilleras meanwhile increased their annual inventories in 2017. Change in inventories estimated at PHP 11.1 billion was 53.7 percent higher than the PHP 7.2 billion year-end inventory in 2016. CAR even ranked 3rd among regions in terms of aggregated inventories of larger establishments (Figure 5).
Figure 5. Change in Inventories, CAR: 2016-2017
- Subsidies from government also boosted the operations of CAR businesses, with a total of PHP 733.6 million assistance received in 2017. This was way up by eight times the aggregated subsidies received by establishments in 2016 with only PHP 77.8 million.
