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     FrontPage Edition: Sun 19 August 2007

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Key Survey Findings on Education Services 2005



In 2005, the education services industry1 comprised 3,200 establishments and employed some 54,800 workers. This represented an average employment size of 17 workers per establishment.
Total operating receipts generated by the education services industry was $2,473 million in 2005, 9.9 per cent higher compared with 2004. Correspondingly, on a per establishment basis, operating receipts rose by 6.9 per cent to $779,300 in 2005.
Total operating expenditure increased by 5.7 per cent from $5,245 million in 2004 to $5,543 million in 2005. On a per establishment basis, operating expenditure also increased by 2.9 per cent during the same period.
Total operating surplus rose by 11.6 per cent to $830 million in 2005. Correspondingly, operating surplus per establishment increased by 8.7 per cent from $240,900 in 2004 to $261,700 in 2005.
Total value added of the education services industry increased by 5.6 per cent from $3,685 million in 2004 to $3,889 million in 2005. On a per establishment basis, value added also grew by 2.7 per cent to $1.2 million in 2005.
General education services, which made up about one-fifth of the total number of establishments in 2005, were the largest employer in the education industry (Chart 1). Institutions of higher education, though the smallest in number, had the largest employment per establishment, engaging about 1,400 workers per institution.

The ¡°higher education¡± group was the largest contributor in terms of operating receipts and value added, accounting for 34.9 per cent and 55.0 per cent of the respective totals (Chart 2).
General education services constituted another major group in the education services industry, accounting for 23.4 per cent and 26.2 per cent share of the total industry¡¯s operating receipts and value added respectively.

In 2005, remuneration was the top business cost item for all education services groups, ranging from 26.1 per cent for supporting services to 70.5 per cent for general education services.
Cost of depreciation was the next largest business cost for general education, technical & commercial education and higher education services.
The second largest business cost item for the ¡°other education¡± and ¡°supporting services¡± groups was rental cost of premises and subcontract charges (for example, payment to individuals and businesses for conducting talks and seminars) respectively.

Average Annual Remuneration per Employee was $56,900 for employees working in the education services industry in 2005. Employees in higher education services received an average remuneration of $83,700, the highest among the education services groups (Table 2). On the other hand, employees in the ¡°other education¡± group were the lowest paid, receiving an average of $24,200.

Value Added per Worker was $71,000 for the education services industry in 2005. Higher education institutions continued to register the highest value added of $115,300 per worker among all the education services groups (Chart 3). In contrast, the ¡°other education¡± group recorded the lowest value added per worker of $30,700.

Firms less than 10 workers formed the majority (75.7 per cent) in the education services industry in 2005 (Table 3). However, firms with 100 workers & above, which constituted only 2.6 per cent, contributed the most to total operating receipts (60.2 per cent). This group¡¯s value added per worker was also the highest at $98,700 in 2005.

1 Includes all establishments and statutory boards engaged in education services but exclude government ministries and departments. Government schools under the full funding and control of the Ministry of Education are also excluded.

Source: News Release 16 Aug 2007

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