About 65 percent of the population 15 years old and over are in the labor force

The number of persons in the labor force, or those who are either employed or unemployed, was estimated at 40.6 million out of the estimated 62.8 million population 15 years old and over in April 2012 (Table 1 and Table 2). This translates into a labor force participation rate (LFPR) of 64.7 percent, slightly higher compared to last year’s figure of 64.2 percent.

Majority of the regions reported an LFPR higher than the national rate. The highest participation rate was reported in Northern Mindanao where 71.1 percent of the region’s working age population was in the labor force followed by MIMAROPA with 70.1 percent and Cordillera Administrative Region (CAR) with 69.0 percent. The lowest LFPR reported was in Autonomous Region in Muslim Mindanao (ARMM) at 55.9 percent (Table 1).

Employment rate registers at 93.1 percent

Out of the 40.6 million persons in the labor force reported in April 2012, 93.1 percent were employed.  This placed the number of employed persons at approximately 37.8 million.  In the same month last year, the employment rate was lower at 92.8 percent.

Among regions, Cagayan Valley had the highest employment rate at 97.2 percent, followed closely by the ARMM (97.1%). The National Capital Region (NCR) recorded the lowest employment rate at 89.6 percent (Table 1).

 

Six in ten of the employed are males

Of the 37.8 million employed persons in April 2012, more than 60 percent were males.

The largest number of employed persons belonged to the age group 25 to 34 years with 26.3 percent of the total employed.  The 35 to 44 age group comprised the second largest group (22.7%), while the 15 to 24 age group made up the third largest group (20.1%) (Table 3).

More than half of the total employed are in the services sector

Of the total employed persons, more than one-half (51.6%) were in the services sector, about one-third (32.9%) were in the agriculture sector, and the rest (15.5%) were in the industry sector.

Among the industry sub-sectors, workers in agriculture, hunting and forestry sub-sector comprised the largest with 29.0 percent of the total employed.  Wholesale and retail trade; repair of motor vehicles, motorcycles, and personal and household goods came next registering 18.6 percent of the total employed (Table 4). 

Laborers and unskilled workers comprise one-third of the employed persons

Among the various occupation groups, laborers and unskilled workers comprised the largest group. One in three (33.6%) employed persons belonged to this occupation group. This was also the largest occupation group reported in April 2011 (32.7% of the total employed).  Farmers, forestry workers, and fishermen registered the third largest group of workers with 14.3 percent of the total employed in April 2012. Service workers and shop and market sales workers increased to 11.7 percent from 10.7 percent reported in April 2011.

Officials of the government and special interest organizations, corporate executives, managers, managing proprietors, and supervisors made up 14.7 percent of the total employed (Table 5).

More than half of the employed are wage and salary workers

Employed persons fall into any of these categories: wage and salary workers, self-employed without any paid employee, employer 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 and government-controlled corporations and those who work with pay in own-family-operated farm or business. 

More than half (55.8%) of the total employed persons in April 2012 were wage and salary workers. In the same month last year, the proportion was similar at 55.0 percent. Those working for private establishments made up 42.8 percent of the total employed, and those working for the government and government-controlled corporations accounted for 7.7 percent.

Self-employed without any paid employee was recorded at 29.0 percent while those who worked without pay in own family-operated farm or business accounted for 12.0 percent. Employers in own family-operated farm or business accounted for only 3.3 percent of the total employed (Table 6).

Among the self-employed workers without any paid employee, those in the services sector (49.2%) made up the largest percentage followed by those in the agriculture (44.5%) sector. The majority of the unpaid family workers were in the agriculture sector making up 70.5 percent of the total unpaid family workers. Among the employers in own family-operated farm or business, more than half (55.1%) were in the agriculture sector (Table 8). 

Five in ten of employed persons work full time

Employed workers are classified as either full-time 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. More than  half (55.1%) of the total employed persons in April 2012 were full-time workers with those working for 40 to 48 hours making up a larger proportion (34.8% of the total employed) than  those working more than 48 hours (20.2%). Part-time workers comprised 42.8 percent. This is higher than the 37.2 percent reported in April 2011 (Table 7).

One in every five employed persons desires more hours of work

Underemployed persons were estimated at 7.3 million in April 2012. This number represented 19.3 percent of the total employed. Underemployed persons are employed persons who express the desire to have additional hours of work in their present job or an additional job, or a new job with longer working hours.

Forty-three percent of the underemployed were in the agriculture sector, 40.4 percent were in the services sector while 16.6 percent were in the industry sector. Last year’s April LFS results also revealed that the largest percentage of the total underemployed was in the agriculture sector (43.4% of all underemployed) and the second largest were those in the services sector 39.9% (Table 9).

Of the underemployed in April 2012, those considered as visibly underemployed, or those persons who had been working for less than 40 hours a week accounted for 63.9 percent, a large percentage of which (52.7%) were in the agriculture sector.

Unemployment rate is 6.9 percent in April 2012

The number of unemployed persons in April 2012 was estimated at 2.8 million which translated to an unemployment rate of 6.9 percent.  For every 10 unemployed, five were in the age group 15 to 24 years, while three were in the age group 25 to 34 (Table 3).  Twenty-one percent of the unemployed were college graduates, 13.8 percent were in college level, and 32.8 percent were high school graduates (Table 10). Among the regions, only NCR recorded a 2-digit unemployment rate of 10.4 percent. Cagayan Valley had the lowest unemployment rate at 2.8 percent.

 

One in three persons aged 15 years old and over is not in the labor force

About one-third (22.2 million or 35.3%) of the 62.8 million total population 15 years old and over in April 2012 were not in the labor force. These include housewives, students, persons with disability, and those who have retired from their employment.

Forty-four percent of those who were not in the labor force belonged to the youngest age group, that is, age group 15 to 24 years.  There were seven females for every 10 persons who were not in the labor force (Table 3).

 

SUMMARY

• The labor force population in April 2012 was estimated at 40.6 million. This translates to a labor force participation rate (LFPR) of 64.7 percent.
• Total employed persons in April 2012 were approximately 37.8 million, resulting to a national employment rate of 93.1 percent.

  More than half (51.6%) of the total employed were in the services sector, 15.5 percent were in the industry sector, and 32.9 percent were in the agriculture sector.

  Laborers and unskilled workers made up the largest proportion of employed persons as they comprised 33.6 percent of the total employed population.

• Total unemployed persons were accounted at 2.8 million in April 2012, which translates to an unemployment rate of 6.9 percent.  
• Underemployment rate was estimated at 19.3 percent in April 2012.  

TECHNICAL NOTES 

The Labor Force Survey (LFS) is a nationwide quarterly survey conducted by the National Statistics Office (NSO). For this release, the data being presented are based on the final results of the April 2012 round of the LFS.

The reference period used in the survey is the past seven (7) days preceding the date of visit of the enumerator.

The concepts and definitions used in the survey can be found in NSO Integrated Survey of Households (ISH) Bulletins.  Some are given below:

a.       Labor Force – refers to the population 15 years old and over who contribute to the production of goods and services in the country. It comprises the employed and unemployed.

b.   Employed - refers to persons in the labor force who are reported either as at work or with a job or business although not a work. Persons at work are those who did some work, even for an hour during the reference period.

c.   Unemployed - refers to employed persons who express the desire to have additional hours of work in their present job or an additional job, or a new job with longer working hours. 

d.    Labor Force Participation Rate (LFPR) – refers to the proportion of total labor force to the total household population 15 years old and over.

e.   Employment Rate – refers to the proportion of employed persons to the total labor force.

f.       Unemployment Rate – refers to the proportion of unemployed persons to the total labor force.

g.      Underemployment Rate – refers to the proportion of underemployed persons to total employed persons.

 

Starting April 2005, the new unemployment definition has been adopted per National Statistical Coordination Board (NSCB) Resolution No. 15 dated October 20, 2004. As indicated in the said resolution, the unemployed include all persons who are 15 years old 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 or believed no work available    

2.      Awaiting results of previous job application

3.      Temporary illness or disability

4.      Bad weather

5.      Waiting for rehire or job recall

Starting with the July 2003 round, the LFS adopted the 2003 Master Sample Design, with a sample size of approximately 50,000 households.

The province of Basilan is now under the Autonomous Region in Muslim Mindanao (ARMM) while Isabela City (Basilan) is under Region IX, in accordance with Executive Order No. 36.

Starting January 2007 LFS round, the population projections based on the 2000 Census of Population and Housing was adopted to generate the labor force statistics. This is in compliance with NSCB Resolution No. 1 series of 2005 entitled “Adoption of the Methodology Used in Generating the 2000 Census of Population and Housing-Based National Population Projections”.

A revised nomenclature on class of worker was adopted since January 2010 LFS round.  In the reports on previous rounds of LFS, particularly in the statistical tables on employed persons by class of worker, the self-employed and employer in own family-operated farm or business were classified as own-account workers.  For the same statistical table in this report, the term “own-account worker” no longer appears as heading for employer and self-employed  to avoid confusion.  In the International Classification of Status in Employment (ICSE), the term “own-account workers” is synonymous to the category”self-employed” in the Philippines LFS.

Starting January 2012 LFS, the four-digit codes used in classifying the industry adopted the 2009 Philippine Standard Industrial Classification (PSIC).  Prior to this, the 1994 PSIC was used.  In classifying the occupation, the 1992 four-digit code Philippine Standard Occupational Classification (PSOC), updated in 2002, was utilized.