Employment Rate in January 2014 is estimated at 92.5 percent

Reference Number: 

2014-020

Release Date: 

Tuesday, March 11, 2014

 

The employment rate in January 2014 is estimated at 92.5 percent.  This estimate is based on the January 2014 round of the LFS, which did not cover the entire Region VIII.  The employment rate for the same month of 2013, computed using data from the January 2013 that includes Region VIII, was 92.9 percent.  Using data from the same LFS round, but excluding the data from Region VIII, the employment rate for January 2013 was also estimated at 92.9 percent.

In the January 2014 round of the LFS, although not all provinces of Region VIII were devastated by Typhoon Yolanda, the entire region was excluded in the data collection to comply with the master sample design being used, which defines the regions as domains.  For this report, the January 2013 labor and employment indicators were calculated using data that excludes Region VIII in order to make them comparable with the January 2014 figures.

The January 2014 LFS also revealed that among the regions, the National Capital Region (NCR) had the lowest employment rate in January 2014 at 88.8 percent.  Three other regions, namely, Ilocos Region (90.7%), CALABARZON (91.1%), and Central Luzon (91.2%) had rates lower than the national figure.

The labor force participation rate (LFPR) in January 2014 is estimated at 63.8 percent.  The LFPR in January 2013 was estimated at 64.1 percent.  Among the regions, the Autonomous Region in Muslim Mindanao had the lowest LFPR at 57.3 percent.  The labor force consists of the employed and the unemployed.

Workers are grouped into three major sectors, namely, agriculture, industry and services sector.  Workers in the services sector continued to comprise the largest proportion of the population who are employed.  These workers made up 54.1 percent of the total employed in January 2014.   Among them, those engaged in wholesale and retail trade or in the repair of motor vehicles and motorcycles accounted for the largest percentage (34.5% of workers in services sector).  In January 2013, workers in the services sector accounted for 54.4 percent of the total employed, with those engaged in wholesale and retail trade or in the repair of motor vehicles and motorcycles making up the largest proportion (34.5% of workers in services sector).

Workers in the agriculture sector comprised the second largest group making up 30.0 percent of the total employed in January 2014, while workers in the industry sector made up the smallest group registering 15.9 percent of the total employed.  Similar percentages were recorded for January 2013, with workers in agriculture making up at 29.9 percent of the total employed, and workers in industry sector, 15.7 percent.  In the industry sector, workers in the manufacturing subsector made up the largest group, accounting for 53.3 percent of workers in this sector, and those in construction, the second largest group, making up 40.5 percent.

Among the major occupation groups, the laborers and unskilled workers remained the largest group making up 31.3 percent of the total employed in January 2014.  In January 2013, such workers made up 32.6 percent of the total employed in that period.  Officials of the Government and special interest organizations, corporate executives, managers, and managing proprietors (16.5% of the total employed) comprised the second largest occupation group, followed by farmers, forestry workers and fishermen (13.8%), and service workers and shop/market sales workers (12.2%).

Employed persons fall into any of these classes of workers: wage and salary workers, self-employed workers without any paid employee, employers in own family-operated farm or business, and unpaid family workers.  Wage and salary workers are those who work for private households, private establishments, government or government-controlled corporations, and those who work with pay in own family-operated farm or business.  In January 2014, the wage and salary workers made up 57.5 percent of the total employed, with those working in private establishments continuing to account for the largest percentage.  They made up 44.1 percent of the total employed in January 2014 and 46.7 percent of the total employed in January 2013.  The second largest class of workers were the self-employed making up 28.5 percent of the total employed in January 2014, and 26.6 percent in January 2013.  The third largest class of workers consisted of the unpaid family workers, accounting for 10.6 percent of the total employed in January 2014, and 9.2 percent of the total employed in January 2013.

Employed persons are classified as either full-time workers or part-time workers.  Full-time workers are those who work for 40 hours or more, while part-time workers work for less than 40 hours.  Of the total employed persons in January 2014, 62.2 percent were full-time workers, while 36.3 percent were part-time workers.  By comparison, in January 2013, full-time workers comprised 65.8 percent while part-time workers, 33.3 percent.  In January 2014, workers worked 41.0 hours per week, on average, compared to 42.4 hours in January 2013.

Employed persons who express the desire to have additional hours of work in their present job, or to have additional job, or to have a new job with longer working hours are considered underemployed.  In January 2014, the underemployment rate, which is the percentage of the underemployed to the total employed, is estimated at 19.5 percent, while it was estimated at 20.7 percent in January 2013. 

The visibly underemployed persons or those working for less than 40 hours accounted for 58.9 percent of the total underemployed in January 2014.  Those who worked for 40 hours or more made up 38.7 percent.  By sector, 41.7 percent of underemployed worked in the agriculture sector, while 41.1 percent were in the services sector.  Those in the industry sector accounted for 17.2 percent.

The unemployment rate in January 2014 is estimated at 7.5 percent, while it was 7.1 percent in January 2013.  Among the regions, the NCR continued to have the highest unemployment rate. The estimate for January 2014 is 11.2 percent, while it was 9.5 percent for January 2013.

Among the unemployed persons in January 2014, 63.9 percent were males.  Of the total unemployed, the age group 15 to 24 years comprised 48.2 percent, while the age group 25 to 34, 29.9 percent. By educational attainment, about one-fifth (19.8%) of the unemployed were college graduates, 13.3 percent were college undergraduates, and 34.0 percent were high school graduates.             

 

(Sgd) CARMELITA N. ERICTA
     Interim National Statistician

 

Technical Notes

 
  • Starting July 2003, the Labor Force Survey (LFS) adopted the 2003 Master Sample Design, with a sample size of approximately 50,000 households. 
     
  • Starting January 2012 LFS, the codes for industry adopted the 2009 Philippine Standard Industrial Classification (PSIC).  Prior to this, codes for industry used the 1994 PSIC.
     
  • Additional codes for highest grade completed were incorporated in the January 2012 LFS questionnaire.
     
  • Question on vocational course was also introduced in the January 2012 LFS questionnaire.
     
  • Starting April 2005, the new unemployment definition was adopted per NSCB Resolution Number 15 dated October 20, 2004.  As indicated in the said resolution, the unemployed include all persons who are 15 years and over as of their last birthday and are reported as: (1) without work and currently available for work and seeking work; or (2) without work and currently available for work but not seeking work for the following reasons:
1. Tired/believed no work available
2. Awaiting results of previous job application
3. Temporary illness/disability
4. Bad weather
5. Waiting for rehire/job recall
  • Starting with the July 2007 LFS round, the population projections based on the 2000 Census of Population and Housing (CPH) was adopted to generate the labor force statistics.  The 2000 CPH-based population projections  has been endorsed as the official figures to be utilized for planning and programming purposes per NSCB Resolution No. 7 Series of 2006, entitled “Adopting  the Methodology Used in Generating the 2000 Census of Population and Housing-Based National Regional and Provincial Population Projections”.
     
  • In the LFS, data on the economic characteristics of household members who are overseas workers are not collected because they are not considered as part of the labor force in the country. Hence, they are excluded in the estimation of the size of working population, that is, population aged 15 years and older. 
     
  • Region VIII was not covered in the January 2014 LFS, to comply with the master sample design currently being used, which defines the regions as domains.  With the regions as domains, the precision of the regional estimates of the employment indicators is assured.

 

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