Employment Situation in April 2014 (Excludes the province of Leyte) (Final Results)

Reference Number: 2014-063
Release Date: September 24, 2014

Six in ten of the population 15 years old and over are in the labor force

Of the estimated 63.8 million population 15 years old and over in April 2014, the number of persons who are in the labor force, those who are either employed or unemployed was reported at 41.6 million. This number translates into a labor force participation rate (LFPR) of 65.2 percent, which means that six in ten of the population aged 15 years and over are in the labor force. Among the regions, Autonomous Region in Muslim Mindanao (ARMM) had the lowest LFPR at 59.2 percent (Table 1).

For this report, the April 2013 labor and employment indicators, computed based on data which excludes the province of Leyte, are used when comparing the April 2014 estimates with the April 2013 figures.

Employment rate reaches 93.0 percent in April 2014

Out of the 41.6 million persons in the labor force reported in April 2014, 93.0 percent were employed.  In the same month of the previous year (April 2013) employment rate was 92.4 percent. The total number of employed persons was estimated at 38.664 million in April 2014 while an estimate of 37.011 million was reported in April 2013.

Four of the 17 regions registered an employment rate lower than the national figure. These are the NCR (89.6%), Ilocos Region (90.8%), CALABARZON (91.0%), and Central Luzon (91.4%). 

Six in ten of the employed persons are males

Sixty percent of the estimated 38.7 million total employed persons in April 2014 were males.
 
The largest number of employed persons consists of age group 25 to 34 years with 26.4 percent of the total employed.  The 35 to 44 age group comprised the second largest group (22.8%), while the 15 to 24 age group made up the third largest group (20.2%) (Table 3).
 
 

Fifty percent of employed persons are in the services sector 

Workers in the services sector remained the largest group of employed persons, making up 52.8 percent of the 38.7 million total employed.  Although employment in the agriculture sector decline in April 2014,  it remained the second largest group with 30.7 percent of the total employed. Those working in the  industry sector went up to 16.4 percent from 16.2 percent in April 2013.  
 
Among workers in the services sector, those engaged in wholesale and retail trade or in the repair of motor vehicles and motorcycles made up the largest percentage which accounted for 18.8 percent of the total employed in April 2014 (Table 4).
 

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

Among the major occupation groups, laborers and unskilled workers made up the largest group which accounts to 32.3 percent of the 38.7 million total employed population. Officials of the government and special-interest organizations, corporate executives, managers, managing proprietors, and supervisors made up the second largest group of workers with 16.0 percent of the total employed. Farmers, forestry workers, and fishermen were the third largest group of workers with 13.3 percent of the total employed in April 2014. Service workers and shop and market sales workers were the fourth largest group accounting for 12.5 percent.

Six in ten of the employed persons 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.  
 
In April 2014, wage and salary workers were registered at 57.5 percent. The same figure was reported in April 2013. Wage and salary workers in the private establishments made up 44.7 percent of the total employed, and those working for the government and government-controlled corporations accounted for 7.8 percent (Table 6). 
 
Classifed according to the broad industry groups, nearly seven in ten (67.1%) unpaid family workers were in the agriculture sector while 59.7 percent wage and salary workers were in the services sector. The self-employed without any paid employee in the services sector made up 50.9 percent of the total 10.9 million self-employed workers (Table 7 and Figure 6).
 
 

Six 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. In April 2014, full-time workers comprised 59.3 percent of the total employed persons. Those working for 40 to 48 hours made up a larger proportion (38.7% of the total employed) than those working for more than 48 hours (20.6%). Part-time workers which comprised 38.7 percent of the total employed in April 2014, increased from the 34.5 percent of the total employed persons in April 2013 (Table 8). 
 

One in every five employed persons desires more hours of work

Underemployed persons are employed persons who express the desire to have additional hours of work in their present job or to have an additional job, or a new job with longer working hours. 
 
An estimated 7.0 million underemployed persons was recorded in April 2014. Of this number, 41.3 percent worked in the agriculture sector, while 40.9 percent were in the services sector. About 18.0 percent of these underemployed workers were in the industry sector (Figure 7). 
 
 
Visibly underemployed persons are those persons who had been working for less than 40 hours a week. Sixty one percent were reported as visibly underemployed out of the 7.0 million underemployed workers. Majority of these workers (77.6%) were in the agriculture sector (Table 9). 
 

Unemployment rate is recorded at 7.0 percent 

The unemployment rate or the proportion of unemployed persons to the labor force was estimated at 7.0 percent in April 2014 (Table 1). This placed the number of unemployed persons at 2.9 million (Table 2). In the same month last year, the estimate at 7.6 percent which is based on the April 2013 LFS data which excludes the province of Leyte.
 
Among the regions, the NCR (10.4%), Ilocos Region (9.2%), CALABARZON (9.0%), Central Luzon (8.6%), and Western Visayas (7.1%) had unemployment rates higher than the national figure (Table 1 and Figure 8).
 
 
 
Six in ten (61.7%) of the unemployed were males.  About 50.0 percent of these unemployed persons were in age group 15 to 24 years (Table 3).
 
Across educational groups, 32.7 percent of the unemployed were high school graduates, 22.4 percent were college graduates, 6.1 percent were elementary graduates, and 7.2 percent finished post secondary courses. More college graduates were reported unemployed (22.4%) in April 2014 compared to (21.3%) of April 2013 (Table 10). 
 

Seventy percent of persons not in the labor force are women

One-third or 34.8 percent of the 63.8 million  population 15 years old and over in April 2014 were not in the labor force. These include housewives, students, persons with disability, and those who have retired from their employment. Seven in ten (70.3%) of those who were not in the labor force are women.
 
Forty-four percent (44.6%) of those who were not in the labor force were in age group 15-24 years (Table 3).
 
 
 

SUMMARY

 
 The labor force population in April 2014 was estimated at 41.6 million. This translates to a labor force participation rate (LFPR) of 65.2 percent.
 
 Total employed persons in April 2014 were approximately 38.7 million, resulting to a national employment rate of 93.0 percent.
 
 More than half (52.8%) of the total employed persons were in the services sector, 16.4 percent were in the industry sector, and 30.7 percent were in the agriculture sector.
 
 Laborers and unskilled workers made up the largest proportion of employed persons as they comprised 32.3 percent of the total employed population.
 
 Total unemployed persons were accounted at 2.9 million in April 2014, which translates to an unemployment rate of 7.0 percent.
 
 Underemployment rate was estimated at 18.2 percent in April 2014.
 
 Persons not in the labor force were accounted at 22.2 million of which 70.3 percent are women.
 
 
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TECHNICAL NOTES

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The Labor Force Survey (LFS) is a nationwide quarterly survey conducted by the Philippine Statistics Authority (PSA). For this release, the data being presented are based on the final results of the April 2014 round of the LFS.
 
The reference period used in the survey is the past seven (7) days preceding the date of interview of the enumerator. 
 
The concepts and definitions used in the survey can be found in PSA 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 at work. Persons at work are those who did some work, even for an hour during the reference period.
 
c.  Unemployed – refers to persons in the labor force who are reported as: 
 
1.   without work; and 
2.   currently available for work; and 
3.   seeking work or not seeking work due to the following reasons: 
i. belief that no work is available, or
ii. awaiting results of previous job application, or
iii. because of temporary illness or disability, or
iv. bad weather, or
v. waiting for rehire or job recall.
 
    The new definition of unemployed was adopted starting April 2005 per NSCB Resolution No. 15 dated October 20, 2004.
 
    The old definition of unemployed considered only two criteria:
 
1. Without work and looking for work; or
2. Without work and not looking for work due to reasons cited in 3(i) to 3(v).
 
d.  Underemployed – 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.
 
e.  Labor Force Participation Rate (LFPR) – refers to the proportion of total labor force to the total household population 15 years old and over.
 
f.   Employment Rate – refers to the proportion of employed persons to the total labor force.
 
g.  Unemployment Rate – refers to the proportion of unemployed persons to the total labor force.
 
h.  Underemployment Rate – refers to the proportion of underemployed persons to total employed persons.
 
In July 2003, 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 with the July 2007 LFS round, the population projections based on the 2000 Census of Population and Housing 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 “Adoption of the Methodology Used in Generating the 2000 Census of Population and Housing-Based National,  Regional, and Provincial 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. 
 
In January 2012, the LFS adopted the 2009 four-digit Philippine Standard Industrial Classification (PSIC) codes in classifying the industry. Prior to this, the 1994 PSIC was used.  The 1992 four-digit Philippine Standard Occupational Classification (PSOC) code, updated in 2002, was utilized. Question on vocational course was included in the questionnaire during this round.
 
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. 
 
The province of Leyte was not covered during the April 2014 round.  A new sampling frame for the province of Leyte has to be created. This is because of the large number of households in Leyte which were displaced by typhoon Yolanda.  The old listing of households for Leyte used as sampling frame for the 2003 Master Sample is no longer usable. 
 

 

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Wilma A. Guillen
Income and Employment Statistics Division 
Social Sector Statistics Service
    +632 8376 2092