Rizal Technological University

College of Engineering & Industrial Technology

4.5.1 MARKET STUDY

Secondary education sector has the largest number of establishments
Based on the preliminary results of the 2012 Census of Philippine Business
and Industry (CPBI) conducted nationwide, a total of 3,541 establishments engaged
in Private Education were covered. As shown in Figure 1, secondary/high school
education garnered thehighest number of establishments at 1,510 (42.6%). Higher
education followed next with 1,185 (33.5%). Pre-primary/pre-school education had
the least number of establishments with only 167 establishments (4.7%).

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Rizal Technological University

College of Engineering & Industrial Technology

National Capital Region (NCR) has the most number of establishments

At the regional level, NCR had the highest number of establishments with 755
(21.3%). CALABARZON and Central Luzon placed second and third with 669
(18.9%), and 447 establishments (12.6%), respectively.

Autonomous Region in

Muslim Mindanao (ARMM) had the least with only 46 establishments (1.3%).
Establishments providing higher education employ highest number of workers
Employment for the sector reached a total of 242,345. Out of this total,
239,674 or 98.9 percent were paid employees while the remaining 2,671 or 1.1
percent were working owners and unpaid workers.
Higher education had the most number of employees with 141.9 thousand or 58.5
percent of the total. Secondary/highschool education followed with 68.5 thousand
employees (28.3%).

The least number of employees were employed by pre-

primary/pre-school education with 5.1 thousand or 2.1 percent.

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Rizal Technological University

College of Engineering & Industrial Technology

The sector recorded an average number of 68 workers per establishment. Higher

education posted the largest average with 120 employees followed by other
education services/educational support services with 51 workers. Pre-primary/preschool education, however, ranked last with only 30 workers per establishment
(Table 3).
Across regions, NCR had the highest number of employees with 70,431 (29.1%).
CALABARZON and Central Luzon, ranked second and third with 36,610 (15.1%)
and 23,597 (9.7%) employees respectively, ARMM had the least with only 2,381
employees or 1.0 percent of the total (Table 2).

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Rizal Technological University

College of Engineering & Industrial Technology
Higher education employees receive the highest average annual compensation
Total compensation paid by Education sector amounted to PHP55.8 billion,
translating to an average annual compensation of PHP232.8 thousand per
employee.
Across industry group, higher education was paid the highest average annual
compensation of PHP265.3 thousand per employee followed by secondary/high
school education services with PHP194.1 thousand.

On the other hand,

establishments providing pre-primary/pre-school education had the lowest average

annual pay of PHP145.1 thousand per employee (Table 3).
NCR had the largest share of compensation paid with 24.0 billion.
CALABARZON and Central Luzon followed with 7.5 billion and 4.2 billion,
respectively. ARMM had the least with only PHP208.5 million (0.4%).

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Rizal Technological University

College of Engineering & Industrial Technology

Top earners are establishments engaged in higher education services

Income generated by the sector reached PHP126.2 billion. Higher education
contributed the biggest share with PHP88.3 billion or about 70.0 percent of the total
income. Second biggest income generating industry was secondary/high school
education with PHP25.8 billion or 20.4 percent. Pre-primary/pre-school education
generated the least income among the industry groups at PHP1.7 billion or 1.4
percent.
Among regions, NCR generated the highest income of PHP57.9 billion
(45.9%), followed by CALABARZON with PHP16.6 billion or 13.1 percent. Central
Luzon generated the third highest income with PHP9.7 billion or 7.7 percent of the
total income. ARMM had the income generated with PHP348.2 million.
Total Expense reached PHP105.6 billion
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Total expense incurred by the sector in 2012 amounted to PHP105.6 billion.

Rizal
Higher education incurred
the Technological
highest expense University
of PHP72.1 billion (68.2%). PreCollege
Engineering
& Industrial
Technology
primary/pre-school had
theoflowest
expense
of PHP1.4
billion (1.3%).

Figure 4

shows the income generated and expense incurred by Private Education sector by
industry group.
Across regions, NCR with the largest number of establishments is also the top
spender with PHP47.2 billion (44.7%), followed by CALABARZON with PHP14.7
billion (13.9%), and Central Visayas was the third highest spender with PHP8.1
billion or 7.6 percent. ARMM, with the least number of establishments, had the least
expense of PHP316.4 million incurred during its operation in 2012.

Income per peso expense

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The income generated per peso expense stood at PHP1.19. Among

Rizalservices/Educational
Technological University
industries, Other education
support services recorded the
College
of Engineering
& Industrial Technology
highest with PHP1.88,
followed
by pre-primary/pre-school
education services and
higher education services with PHP1.24 and PHP1.23, respectively. Primary/
elementary educational registered the lowest with PHP1.09 income per peso
expense.
Davao Region recorded the highest income per peso expense among regions
with 1.33 while Eastern Visayas had the least at 1.03
Value added amounts to PHP85.1 billion
Value added for the sector was estimated at PHP85.1 billion. Almost 70.0 percent
(PHP59.6 billion) of the total value added was contributed by higher education. On

the other hand, Pre-primary/pre-school education reported the lowest with PHP1.2
billion only. Figure 5 displays the distribution of value added by industry group.

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NCR had the highest value added recorded at about PHP38.0 billion (44.6%),

Rizal
University
followed by CALABARZON
withTechnological
PHP10.9 billion (12.8%).
Third is Central Luzon with
College
of Engineering
Industrial
Technology
PHP6.9 billion (8.1%).
ARMM
recorded the&least
value added
of PHP262.9 million or
0.3 percent.
Employees of higher education services are the most productive
Value added per worker, a measure of labor productivity, was valued at
PHP351.3 thousand for education establishments.

Figure 6 show that higher

education services had the highest average of PHP420.2 thousand among

industries. Primary/elementary education workers had the least productive of
PHP219.5 thousand.

Region wise, workers in NCR garnered the highest labor productivity with
PHP538.9 thousand per employee, Central Visayas is second with PHP338.7
thousand, followed by CAR with PHP337.5 thousand. Workers in ARMM were the
least productive with PHP110.4 thousand.

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Rizal Technological University

College of Engineering & Industrial Technology

Gross Additions to Tangible Fixed Assets totals PHP11.2 billion

The sector acquired a total of PHP11.2 billion worth of gross additions to fixed
assets in 2012. Higher education industry recorded the highest among the industry
group with PHP9.4 billion or 83.8 percent of the total. Followed by secondary/high
school education with PHP1.5 billion or 13.2 percent.

Pre-primary/pre-school

education had the least gross addition to fixed assets with 87.9 million.

Total change in inventories values at PHP72.1 million

Change in inventories, defined as the value of ending less the beginning
inventory, amounted to PHP72.1 million in 2012 for education sector.
Subsidies totaled to PHP1.1 billion
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Subsidies or government grants provided to all the industries in the sector

Technological
University
reached PHP1.1 billionRizal
in 2012.
Secondary/high
school education received the
College
of Engineering
& Industrial
Technology
highest grant from the
government
amounting
to PHP758.9
million (66.3%), followed
by higher education with PHP327.5 million or 28.6 percent.
Sales from E-commerce amount to PHP65.2 million
Overall, only two industries had reported sales from E-commerce for
Education

sector. These were

other education

services/educational

support

services with PHP65.2 million and secondary/high school education with PHP71.0
thousand.
Likewise, only NCR and CAR reported sales from E-commerce of PHP63.3
million and PHP1.9 million respectively.
Total assets reached PHP311.0 billion
Total assets for Education service activities acquired total assets of PHP311.0
billion in 2012. Higher education recirded assets valued at PHP199.0 billion the
largest among industry group folowed by secondary education services with
PHP89.8 billion. Pre-primary/pre-school education had the least with PHP3.2 billion.

Across regions, NCR had the highest, with PHP164.5 billion (52.9%).
CALABARZON came next, with PHP37.3 billion (12.0%), followed by Central
Visayas with PHP24.6 billion or 7.9 percent of the total. The least assets were
acquired by ARMM with PHP566.8 million or 0.2 percent.

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10

Rizal Technological University

College of Engineering & Industrial Technology

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