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CBS, STATISTICAL ABSTRACT OF ISRAEL 2014 20 2014 MANUFACTURING GENERAL The tables in this chapter are based on data from a monthly survey on Manufacturing, Mining and Quarrying Indices (Tables 20.120.9), as well as on the annual Survey of Manufacturing, Mining and Quarrying (Tables 20.10-20.15). In the monthly survey, the data are collected each month from manufacturing establishments and from administrative sources. In the annual survey, the data are collected from annual financial statements and from administrative sources. The findings of the present survey are presented late, because there is a lapse between date that the data from the fiscal year are compiled and the date that financial statements are submitted to the tax authorities. included in manufacturing, and in light of the changes in the division of manufacturing industries into groups by levels of technological intensity. Establishments: The tabulation unit (which is also the investigation unit) is the "establishment", which is defined as an economic unit at one site that performs one Manufacturing activity and keeps separate accounts. A division of a company, which is a productive unit in itself, is considered a separate establishment. Sector: See the Introduction to Chapter 18 Business. Employee jobs (formerly: employees): are all workers appearing on employee payrolls, including members of co-operative societies as well as workers from the Palestinian Authority. Unsalaried kibbutz members employed in a kibbutz establishment are considered to be owners. Jobs (formerly: employed persons): Refer to employee jobs, non-employee jobs, owners and unpaid family members. In the annual Manufacturing, Mining and Quarrying Survey, data are presented only for the total number of jobs (including kibbutz members). Investigation period: Data on indices of Manufacturing, Mining and Quarrying and data on Manufacturing, Mining and Quarrying refer to calendar years (January to December). Actual hours worked: These data also include overtime, but do not include days of paid absence (e.g. holidays, sick leave, etc.) nor do they include the working hours of owners and their family members. Wages (Formerly: Wages and salaries): Remuneration in cash or in kind payable by an employer to an employee in return for work done during the accounting period, including compensation for time that the employee did not work, such as yearly vacation, absences, and other paid vacations. Wages include: Remuneration in cash: Payments such as basic wages, cost-of-living allowances, seniority payments, advance payments, overtime, premiums, various benefits, DEFINITIONS AND EXPLANATIONS Population: Data in Tables 20.1-20.9 refer to Manufacturing, mining and quarrying establishments with at least one employee job, excluding the diamond industry. The data from the annual Manufacturing, Mining and Quarrying Survey for 2011 in Tables 20.10-20.15 relate to all the establishments including self-employed persons who do not have employees, excluding the diamond industry. Classification by Industries: The classification is according to the Standard Industrial Classification of All Economic Activities 2011. Classification by Technological Intensity: Manufacturing industries (Section C) were aggregated into four groups by technological intensity, in accordance with the classification recommended by the OECD and Eurostat. The classification of establishments by technological intensity was based on the main activity of each establishment, and on the industrial classification of each establishment according to the Standard Industrial Classification of All Economic Activities, 2011. The current classification by technological intensity is different from the classification used to date, mainly because mining and quarrying and publishing were not MANUFACTURING שנתון סטטיסטי לישראל,למ''ס )160( תעשייה allowances, grants and supplements (current or non-recurring) such as: on-call, shifts, 13th-month salary, transportation, education and proficiency allowances, car allowance, and convalescence pay. Remuneration in kind: Payments such as contributions for car benefits, for mobile phones, holiday gifts, courses, on-the-job training, and travel abroad. Wages do not include: Social contributions payable by employers such as: pension funds, provident funds, study funds, national insurance, and health insurance. Wages also do not include severance payments. Labour cost: includes wages and expenses paid by the establishment, which are related to hiring employees and do not appear on payrolls, e.g., National Insurance, Mivtahim, and other funds (advanced study, pension, and severance), severance pay and pension allowances paid by the employer, and expenses for transporting employees to work, maintenance of restaurants, etc. Compensation for jobs includes expenses for wages and salaries, as well as supplementary expenses for wages and salaries. The Manufacturing, Mining and Quarrying Survey data are defined as compensation for jobs, and are different from the labour costs reported in the framework of monthly indices for the following reasons: a. The financial reports of establishments include bonuses, grants and allowances are included that had not been reported in the monthly reports; b. In the survey, compensation for jobs is presented, and also includes the owners and kibbutz members, as well as the imputed value of compensation for non-employee jobs. For a detailed definition, see the paragraph “Wages, Compensation, and Labour Costs” in Chapter 14 - National Accounts. Revenue: The value of sales to the domestic market, sales for exports, income from work and repairs, and income from products manufactured by the establishment for its own use. In Tables 20.1-20.4, revenue includes purchase tax and VAT, and does not include subsidies and export incentives. In the Manufacturing, Mining and Quarrying Survey, data in Tables 20.10-20.14 include non-manufacturing revenue (excluding capital gains), subsidies, and export MANUFACTURING incentives, and do not include taxes (purchase tax and Value Added Tax). Gross output: is defined in the Manufacturing, Mining and Quarrying Survey as the total revenue of the establishments with the addition of value of change in stock of finished and unfinished products, and less the value of goods that were purchased but not processed. Inputs: Total inputs include consumption of raw materials, auxiliary materials, water, electricity, etc., as well as other inputs in the production process, including cost of piecework, maintenance and repair of equipment, etc., and net general expenses. Gross value added: is defined as the difference between gross output and total inputs. EMPLOYED PERSONS, EMPLOYEES/ JOBS, EMPLOYEE JOBS Definitions and Explanations 1. Estimates of employment: persons or jobs. Household surveys: The estimates of employment relate to persons engaged in economic activity. Source of the data: interviewing of households. The household surveys conducted by the CBS are: Labour Force Surveys, Household Expenditure Surveys, The Social Survey, and the Census of Population and Housing. Business surveys: The estimates of employment relate to jobs for pay. Source of the data: Reports of employers or administrative reports (employee jobs reported to the National Insurance Institute). Persons (Household surveys) Employed persons Employees Non-employees Jobs (Business surveys) Jobs Employee jobs Non-employee jobs 2. As of 2005, there has been a change in the terms used for the business surveys: “jobs” and “employee jobs” are used instead of “employed persons” and “employees”. The change in terminology has no effect on the data. 3. Persons holding more than one job with different employers will be counted once in household surveys, but in the business surveys they will be counted once for each )161( תעשייה job held. 4. Data from these two sources differ from each other due to variations in the definitions and variations in coverage, in sources of information, in methods of data collection, and in estimation procedures, as well as to variability in samples and response errors. gross value added according to basis prices, as obtained from summaries of the 2009 Survey of Manufacturing, adjusted for the base year of the indices - 2011. Indices of Manufacturing production for 2004 and onward on the new base average 2011 = 100, adjusted to the new Standard Classification. The index of paid hourly wages per employee job: is obtained by the division of the index of wages (excluding one-time payments and back pay) by the index of paid work hours (i.e., actual work days and hours of paid absence). Annual Manufacturing, Mining and Quarrying Survey: (Tables 20.10-20.15). The manufacturing, Mining and Quarrying survey is a sample survey. In 2011, a new sample of dealers was drawn from the business register, which was established by the Central Bureau of Statistics. The sample was drawn for all industries in the economy. Manufacturing, Mining and Quarrying establishments, were included in the Manufacturing, Mining and Quarrying Survey on the basis of the Standard Classification of Economic Activities. Detailed data on Construction industries are presented in Chapter 22 - Construction. Detailed data on Agriculture, Electricity, Water, Trade, Services, Transport and Communications are presented in Chapter 18 - Business. Data in the survey on the value of the various types of stock (finished products, work in progress of products not processed, goods, and raw materials), at the beginning and at the end of the year were adjusted for the average prices of the surveyed year. This was done in order to deflate the inflational profit of the data on stock; the Consumer Price Index was used for this adjustment. Full details were published in the Introduction to the Manufacturing Surveys 1998, No. 1160 of the Special Series. Balance sheet for Manufacturing: Table 20.15 presents balance sheet data on Manufacturing, Mining and Quarrying industries. The data for 2010-2011 are presented at nominal values (reported), according to Accounting Regulations No. 12 and 17 of the Israel Accounting Standards Board. METHODS OF COMPUTATION AND ESTIMATION Indices of Manufacturing, Mining and Quarrying: (Tables 20.1-20.9). The indices of Manufacturing measure the monthly changes in Manufacturing production, in revenue (at current prices), in employment and wages, as compared with the base period. As of 2012, the series is based on Manufacturing establishments and Mining and Quarrying, according to the Standard Industrial Classification of All Economic Activities 2011, Technical Publication No. 80. This Classification replaces the Standard Classification of All Economic Activities, Second Edition, 1993. The Sample: The sample includes establishments with at least one employee job. Manufacture of diamonds is not included in the sample of manufacturing, Mining and Quarrying indices. In 2011, a new sample was drawn. Data from the new sample are presented for 2013. For the period 2004-2012, the data are presented according to the 2011 Standard Classification. The sample was drawn from the Business Register of the CBS (see Chapter 18 Business). Index of Manufacturing production: Since it is impossible in practice to obtain monthly reports from the Manufacturing establishments on the changes in the value added for the computation of the index of Manufacturing production, the changes are measured by various indicators, such as production, revenue at fixed prices, etc., assuming that these changes reflect the changes in the value added. Changes in the indicators of groups are weighted according to their value added in the industry. The indices for the divisions and for the total Manufacturing are weighted according to the value added of the groups in the division and in the total. The source of weights for the groups and divisions is the MANUFACTURING SOURCES Data in Tables 20.1-20.9 were obtained within the framework of indices of Manufacturing, )162( תעשייה Mining and Quarrying survey based on monthly reports from establishments included in the sample as well as on administrative sources: the National Insurance Institute, and VAT files. The data presented in Tables 20.10-20.15 were received from the Manufacturing, Mining and Quarrying survey, and are based on annual financial reports from the Manufacturing, Mining and Quarrying establishments included in the sample. SELECTED PUBLICATIONS SPECIAL PUBLICATIONS 1098 Survey of Fixed Gross Capital Stock in Manufacturing, 1.1.1992 1425 Survey of Products and Materials in Manufacturing, 2006 1540 Manufacturing Indices 2011 1547 Manufacturing Survey, 2010 MANUFACTURING CURRENT BRIEFINGS IN STATISTICS 12, 1999 Financial Statements of Manufacturing, 1995 16, 1999 Survey of Structure of Labour Force, Patterns of Work and Innovation in Manufacturing, 1997 JUBILEE PUBLICATIONS (on the occasion of Israel’s 50th year) Manufacturing, Commerce and Services (No. 4 in the series) (Hebrew only). )163( תעשייה