March 2, 2024

Businesses in the Cordillera that are in the formal sector have posted close to P255 billion in sales in 2021, the Philippine Statistical Authority Cordillera said.

Based on the 2021 Annual Survey of Philippine Business and Industry (ASPBI) report for the region, Senior Statistical Specialist Betina Joy Bermillo of the PSA-Cordillera Statistical Operations and Coordination Division reported the region’s formal business sector recorded a re-venue of P254.99B or an increase of 15.1 percent compared to 2020, where the sector posted a revenue of P221.57B.

While the figures show the Cordillera recovered one year after the country was hit by the Covid-19 pandemic in 2020, Bermillo said the formal business sector in the region fell short of reaching its pre-pandemic revenues.

The region in 2019 had a revenue of P271.96B which decreased by 18.5 percent in 2020, which posted P221.57B, and P254.99 in 2021.

The country posted P20.98 trillion re-venue from the formal business sector.

By broad industry group, the industry sector earned P164.65B or 4.6 percent of the total revenue, followed by services with P90.26B or 25.4 percent; and agriculture, forestry and fishing sector (AFF) posted P85.22B.

By sector, establishments engaged in manufacturing contributed P128.9B; wholesale and retail trade P53.3B; and electricity, gas, steam and air conditioning supply shared P15.8B in the total revenue.

Those that posted an increase from 2020 to 2021 are the AFF which recorded 8.3 percent increase from 78M to 85.22M; industry, which increased by 5.8 percent from 155.6B to P164.6B; and services from P65.9B to P90.2B or 35.4 percent increase.

Sections with the highest increase are real estate from P405.5M to P3.4B in 2021; wholesale and retail trade and repair of motor vehicles and motorcycles from P30.8B to 53.3B; and arts, entertainment and recreation from P209M to P333.8M.

Large establishments contributed most to the total revenue with P160.1B; small establishments, P65.6B; micro establishments, P18.5B; and medium, P10.8B.

In terms of expenses, formal businesses in the region posted P225.11B total expenses in 2021 or an increase by 8.6 percent from 2020 with P207.21B.

Total expenses are mostly in the industry sector which spent P143.6B followed by services with P81.5B: and AFF, P78M.

By section, most expenses were spent in manufacturing with P52.1B; wholesale etc., P22.5B; and electricity etc., P4.7B.

The total expense in AFF posted 10.3 percent increase; 35.8 percent increase in services; and decrease by 2.4 percent for industry.

Most of the expenses are incurred in large establishments – P143.8B; small – P55.3B; micro P15.7B; and medium, P10.3B.

There were a total of 5,256 establishments in the region from the formal sector in 2021, or a 1.9 percent contribution to the total of 281,153 establishments in the country.

The number of formal sector businesses in the region declined by 17.6 percent in 2020 compared to 2019 from 5,097 to 4,202 establishments.

Most establishments by broad industry group in the region are in the services sector with 4,788 establishments or 91.1 percent, followed by industry where there are 454 establishments or 8.6 percent; and AFF with 14 establishments or 0.3 percent.

By section, the sector with the most number of establishments are engaged in the wholesale and retail trade, repair of motor vehicles and motorcycles at 48.6 percent with 2,553 establishments, followed far behind by establishments engaged in financial and insurance activities with 692 or 13.2 percent; and establishments engaged in accommodation and food service activities are at 557 or 11.0 percent.

In terms of employment, micro establishments have the most number in 2021 with 4,120 establishments comprising of 78.4 percent of the total number, followed by small with 1,066 establishments or 20.3 percent; large with 43; and medium with 27.

Total employment in the formal sector in the region in 2021 was 67,956 workers or 1.1 percent of the national figure of 6,155,893 workers in the formal sector.

By broad industry group, there were 143 workers in AFF; industry, 16,352; and services, 51,451 workers. 

By section, the sector with the most employment is wholesale and retail trade with 14,888 workers or 21.9 percent followed by administrative and support service activities with 11,013 or 16.2 percent; and accommodation and food service activities with 8,177 workers or 12 percent.

On the other hand, sectors with reported increase in number of employment are those engaged in real estate activities which increased by 1,132 or 209.4 percent increase from 636 in 2020 to 1,968 in 2021; wholesale and retail trade, by 3,293 or 28.4 percent or 14,888 in 2021; and water supply, sewerage, waste management and remediation activities which increased by 38 workers or 5.8 percent.

Workers in the formal sector are mostly employed in large establishments – 28,249; small, 21,854; 14,098 in micro; and medium, 3,755.

In 2021, the average annual compensation of formal workers in the region was at P288,825 per worker, which is higher by 16 percent compared to 2020, but lower than the national average of P317,558.

By broad industry group, the annual average compensation is highest in industry sector with P408,535 followed by services with P250,370, and P118,976 for AFF.

The highest paid worker in the formal sector are in the electricity, gas, steam and AC supply with P611,190; water supply, sewerage waste management and remediation with P470,477; and manufacturing with P430,408 – all of these are under the industry sector.

Comparing 2020 and 2021, there is a decrease in AFF by P1,306 or -1.1 percent; industry, an increase by P52,736 or 52.5 percent; services, increased by P28,654 or 22.2 percent.

The annual average compensation increased by 96.5 percent in the accommodation and food service activities from P125,891 to P247,361; followed by real estate activities; and construction.

Workers in large establishments are paid the highest at P390,642; medium, P241,872; small, P230,955; and micro, P168,089. – Hanna C. Lacsamana