For the Record 

On the 3rd Quarter 2005 Compensation Per Employee Index

This article seeks to clarify an issue raised in the Business Mirror published on 02 March 2006 entitled “Total Compensation Per Employee Index Down to 5% in 3rd quarter, from 9.6%” resulting from the NSCB’s press release last March 1, 2006 regarding the Quarterly Economic Indices - “Gross Revenue of Industries Up by 13.4 percent in 3rd Qtr of 2005.

The news article

The Business Mirror article wrote:

“But what is confusing, however, is the description of Dr. Virola that transportation and communication and finance are the two major industries which contributed to the “improved” index on compensation per employee.”

The facts

The NSCB released the Third Quarter 2005 Quarterly Economic Indices (QEI) on March 01, 2006. On the fourth paragraph of the press release, it stated:

The Total Compensation Per Employee Index decelerated at 5.0 percent from last year’s 9.6 percent growth. Transportation and Communication as well as Finance are the two major industries which contributed to the improved index on compensation per employee. They grew by 10.0 percent and 18.1 percent respectively.

May we clarify that the word “improved” was used to mean an increased index or a higher index. The index on compensation per employee showed an improvement from 2004 although recording a decelerated growth rate from a higher growth of 9.6 percent to a reduced growth of 5.0 percent.

As shown in Table 1, the total compensation index per employee grew from 1,605.6 in the third quarter 2004 to 1,686.0 in the same quarter in 2005, registering a growth of 5.0 percent. The same index grew at 9.0 percent from 1,464.5 percent in the third quarter of 2003 to 1605.6 percent in the third quarter of 2004. The comparable growth rates are the 5.0 percent increase from 2004 to 2005 and the 9.6 percent increase from 2003 to 2004 which show a deceleration of the index, i.e., increasing at a slower rate. Transportation and communication and finance are the two sectors with the highest contribution to the improved index for the quarter. They increased by 10.0 percent and 18.1 percent respectively - or an increase in index from 3,084.7 to 3,394.5 for transportation and communication and an increase in index from 1,683.4 to 1,987.8 for finance.

The NSCB would like to thank Mr. Artemio F. Cusi III of the Business Mirror for his interest in statistics and his help in its dissemination. Other tables and technical notes on the QEI are available at the NSCB website at http://www.nscb.gov.ph/econindex/default.asp .

For other inquiries, you may contact Ms. Vivian R. Ilarina or Ms. Rhea-Ann F. Austria at telephone numbered (632) 896-5372 or through their e-mail addresses vr.ilarina@nscb.gov.ph and raf.austria@nscb.gov.ph.

Table 1
QUARTERLY INDICES ON COMPENSATION PER EMPLOYEE
AT CURRENT PRICES
(1978=100)

Year/
Quarter

Total

Mining &
Quarrying

Manufacturing

Electricity & Water

TRADE

Transportation
&
Communication

Finance

Real
Estate

Private Services

2002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

1,301.7

 

1,567.5

 

712.2

 

2,256.8

 

1,494.3

 

2,476.8

 

1,653.7

 

946.1

 

3,699.1

Q2

1,308.1

 

2,398.1

 

832.9

 

2,558.7

 

1,496.8

 

2,631.4

 

1,664.0

 

973.1

 

3,945.1

Q3

1,308.9

 

2,713.0

 

822.3

 

2,958.6

 

1,458.7

 

2,737.2

 

1,651.5

 

865.5

 

3,000.1

Q4

1,526.8

 

2,042.7

 

856.6

 

2,454.6

 

1,515.1

 

2,944.5

 

1,799.4

 

980.0

 

3,891.6

2003

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

1,347.5

 

1,412.6

 

710.3

 

2,458.2

 

1,459.4

 

2,917.8

 

1,703.5

 

990.6

 

3,817.8

Q2

1,323.6

 

2,806.7

 

859.6

 

2,611.4

 

1,434.7

 

2,737.0

 

1,861.0

 

978.1

 

4,009.2

Q3

1,464.5

 

2,770.1

 

855.1

 

2,995.2

 

1,418.0

 

2,806.0

 

1,791.3

 

936.7

 

3,960.8

Q4

1,651.0

 

2,135.8

 

919.0

 

2,495.0

 

1,510.8

 

3,169.2

 

1,895.5

 

1,020.6

 

4,174.2

2004

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

1,456.5

 

1,575.6

 

730.4

 

2,503.4

 

1,575.8

 

2,979.4

 

1,750.9

 

931.8

 

4,334.0

Q2

1,450.1

 

2,861.8

 

925.7

 

2,746.9

 

1,512.4

 

3,040.0

 

1,782.4

 

1,033.4

 

4,400.3

Q3

1,605.6

 

2,791.1

 

916.5

 

3,272.6

 

1,475.0

 

3,084.7

 

1,683.4

 

931.4

 

4,304.8

Q4

1,738.2

 

2,363.4

 

946.5

 

2,477.6

 

1,569.3

 

3,297.8

 

1,807.6

 

1,090.6

 

4,544.9

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1

1,501.0

 

1,578.2

 

779.7

 

2,445.5

 

1,653.4

 

2,958.4

 

1,709.5

 

951.5

 

4,261.1

Q2

1,484.7

 

3,067.3

 

972.3

 

2,775.4

 

1,557.4

 

3,046.1

 

1,615.1

 

1,144.8

 

4,397.9

Q3

1,686.0

 

3,041.6

 

1,006.3

 

3,542.4

 

1,477.4

 

3,394.5

 

1,987.8

 

973.7

 

4,214.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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