Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles dominates the economy in terms of the total number of establishments

The preliminary result of the 2020 ASPBI showed that the NCR had a total of 68,459 establishments in the formal sector of the economy.  The number of establishments in  NCR was about 28.8 percent of the 238,023 total establishments at the national level in 2020.

Among sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles led in terms of number of establishments with 25,252 or 36.9 percent share to total establishments in NCR. This was followed by Accommodation and Food Service Activities with 9,893 (14.5%) and Financial and Insurance Activities with 7,477 (10.9%) establishments. On the other hand, Mining and Quarrying (20), Electricity, Gas, Steam and Air Conditioning Supply (37), and Agriculture, Forestry and Fishing (41) reported the least number of establishments in 2020.   (Figure 1)

In comparison, the number of establishments in NCR was lower by 13.7 percent, or 10,883 establishments compared to the result of the 2019 ASPBI with 79,342 establishments. The Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles largely contributed to the decrease in the number of establishments in NCR with 3,604 establishments or about negative 12.5 percent from its 28,856 establishments in 2019.  This was followed by Manufacturing which was down by 1,507 (-23.7%) to reach 4,862 from 6,369, and Accommodation and Food Service Activities with a decrease of 1,364 (-12.1%) from its 11,257 establishments in 2019.

Administrative and Support Service Activities employ the highest number of workers

The total employment in NCR reached 2,447,934 in 2020 which was about 39.8 percent of the total employment of the entire country. Compared to 2019, the total employment in NCR was lower by 602,583 (-19.8%) from the 3,050,517 total employment. Of the 2,447,934 total employment in 2020, 99.3 percent were considered paid employees while the rests were working owners and unpaid workers.

Among 18 economic sectors, the Administrative and Support Service Activities employed the highest number of workers reaching 711,319 which was about 29.1 percent of the total employment in the region in 2020.  The total employment of this sector was lower by 118,699 employees (-14.3%) compared to the 2019 record of 830,018.  Other sectors that registered the highest share of total employment were Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles (14.7%), Manufacturing (10.0%), Financial and Insurance Activities, and Construction with both 7.1%.  The combined total employment from these five economic sectors comprised around 67.9 percent of the total employment in NCR in 2020. (Figure 2)

Mining and Quarrying more than triple its total compensation in 2020

In 2020, the total compensation paid by establishments in NCR amounted to PhP 1.10 trillion which was about 56.6 percent of the total compensation paid by all establishments in the entire country.  Compared to 2019, the total compensation paid in 2020 was lower by PhP 192.59 billion (-14.9%) from its previous record of almost PhP 1.30 trillion.

The Administrative and Support Service Activities recorded the largest share of total compensation paid in 2020 amounting to PhP 278.24 billion (25.2%) as well as the biggest decrease of PhP 70.19 billion (-20.1%) compared to 2019 total compensation of PhP 348.43 billion.  Similarly, the Financial and Insurance Activities came next with PhP 169.74 billion or 15.4% of the total compensation in 2020 and a decrease of PhP 38.36 billion (-18.4%) from its PhP 208.09 billion records in 2019.  The third sector with the highest share in total compensation was Manufacturing with PhP 130.84 billion or 11.9% of the total compensation in 2020 with an increase of PhP38.26 billion (41.4%) from its 2019 record of PhP 92.58 billion.

Similar to Manufacturing, four more economic sectors registered an increase in total compensation with Mining and Quarrying having the highest growth rate of 225.1 percent.  This tripled its total compensation from PhP 387.62 million in 2019 to PhP1.26 billion in 2020. Other economic sectors that registered an increase in total compensation were Electricity, Gas, Steam and Air Conditioning Supply with a 24.0 percent increase, Human Health and Social Work Activities (7.5%), and Real Estate Activities (6.2%). (Figure 3)

Electricity, Gas, Steam and Air Conditioning Supply pays the highest average annual compensation

The average annual compensation per paid employee in NCR was reported at PhP 453.51 thousand in 2020 which recorded an increase of 6.4 percent from PhP 426.36 thousand in 2019. 

Among economic sectors, Electricity, Gas, Steam and Air Conditioning Supply paid the highest average annual compensation of PhP 1.60 million followed by Mining and Quarrying with PhP 1.21 million and  Financial and Insurance Activities with PhP 974.28 thousand.  (Figure 4)

Meanwhile, Mining and Quarrying reported the highest increase in average annual compensation with 378.6 percent from its PhP 252.69 thousand in 2019.  This was followed by Manufacturing which registered a 100.8 percent increase from PhP 268.02 thousand in 2019 to PhP 538.23 thousand in 2020 and Agriculture, Forestry and Fishing with a 93.6 percent increase or from PhP 173.84 thousand in 2019 to PhP 336.58 thousand in 2020.

Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles contributes the biggest share in terms of revenue and expense

The total revenue generated by the establishments reached PhP 8.22 trillion while the total expense incurred amounted to PhP 7.39 trillion in 2020.  Both revenue and expense registered a negative growth rate of -26.2 percent and -21.7 percent compared to their 2019 figures of PhP 11.14 trillion and PhP 9.44 trillion, respectively.

Across economic sectors, Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles contributed the biggest share to total revenue with PhP 2.01 trillion (24.4%) and to total expense with PhP 1.90 trillion (25.7%).  The total revenue generated by this sector was lower by -35.5 percent compared to its 2019 figure of PhP 3.12 trillion.  Similarly, its total expense was also lower by -35.7 percent compared to PhP 2.95 trillion in 2019.

On the other hand, the Other Service Activities sector had the lowest contribution to the total revenue and total expense amounting to PhP 4.53 billion (0.06%) and PhP 4.63 billion (0.06%), respectively. (Figure 5)

Real Estate Activities generates the highest revenue per peso expense

The revenue per peso expense ratio for all establishments in NCR stood at 1.11 in 2020.  This means that for every peso spent by the establishment in the operation of its business, a corresponding revenue of PhP 1.11 was generated.

Of the 18 economic sectors, ten had registered higher than the 1.11 revenue per peso expense ratio of the region.  Among these sectors, Real Estate Activities generated the highest revenue per peso expense ratio of 1.40 followed by Financial and Insurance Activities (1.39) and Water Supply; Sewerage, Waste Management and Remediation Activities (1.32).  On the other hand, the Construction sector recorded the least revenue per peso expense ratio of 0.65.

Transportation and Storage leads in Sales from E-Commerce Transactions

E-commerce refers to the sale or purchase of goods or services whether between businesses, households, individuals, government, and other public or private organizations, conducted over the internet. The goods or services are ordered online, but the payment and the ultimate delivery of goods or services do not have to be conducted online.

Total sales from e-commerce transactions in 2020 in NCR were estimated at PhP 88.82 billion.  The Transportation and Storage sector recorded the largest sales through e-commerce transactions amounting to PhP 40.10 billion or 45.1 percent of the total e-commerce sales. This was followed by the Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles sector with PhP 29.44 billion (33.1%) and Administrative and Support Service Activities sector with PhP 15.07 billion (17.0%).

Other sectors with sales from e-commerce transactions in 2020 were:

• Manufacturing, PhP 0.05 billion
• Accommodation and Food Service Activities, PhP 2.02 billion
• Information and Communication, PhP 0.24 billion
• Financial and Insurance Activities, PhP 1.84 billion
• Education, PhP 0.05 billion
• Arts, Entertainment, and Recreation, less than PhP 0.01 billion

     SGD.
PACIANO B. DIZON
Regional Director