Employment Situation in October 2010

Reference Number: 2012-668
Release Date: January 21, 2012

The current unemployment definition used in the Labor Force Survey (LFS) is presented in the Technical Notes of this report. This definition was adopted per NSCB Resolution Number 15 dated October 20, 2004.  For comparative purposes, the October 2010 results of the Labor Force Survey are presented in textual tables alongside those for the October 2009 survey round.

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

Out of the estimated 61.2 million population 15 years old and over in October 2010, around 39.3 million persons were reported to be in the labor force. These figures placed the labor force participation rate (LFPR) in October 2010 at 64.2 percent as compared to the October 2009 LFPR of 64.0 percent. Among the regions, Northern Mindanao registered the highest LFPR at 70.8 percent and ARMM had the lowest at 56.3 percent.

Employment rate is recorded at 92.9 percent

The employment rate or the proportion of employed persons to total labor force was recorded at 92.9 percent in October 2010. This figure is the same as the estimate in October 2009. The current rate of 92.9 percent translates into an approximately 36.5 million employed persons 15 years old and over.

Regions that posted high employment rates in October 2010 were Cagayan Valley (97.4%), Zamboanga Peninsula (97.0%), Autonomous Region in Muslim Mindanao (ARMM) (96.8%) and SOCCSKSARGEN (96.3%). The National Capital Region (NCR) had the lowest employment rate at 87.4 percent.

Employed males outnumber employed females

Six in ten (61.0%) of the employed population in October 2010 were males.

Around 16.5 percent of the total employed were males in age group 25 to 34 years. Males in the 35 to 44 age group comprised the second largest group with a share of 14.0 percent to the total number of employed persons.

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

Of the estimated 36.5 million employed persons in October 2010, more than half (51.7%) were in the services sector. The largest employed workforce in the services sector were in wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods, numbering 7.2 million or 19.6 percent of total employed.

Those in the agriculture sector comprised the next largest group with 33.6 percent of the total employed. Only 14.7 percent of the total employed population were in the industry sector.

One in three employed persons is a laborer or unskilled worker

Among the various occupation groups, laborers and unskilled workers comprised the largest proportion (32.4%) of the total employed population, followed by farmers, forestry workers and fishermen with 16.2 percent share of the total employed population.

Majority of employed persons are wage and salary workers

Employed persons fall into any of these three categories: wage and salary workers, own account workers, and unpaid family workers. Wage and salary workers are those who work for private households, private establishments, government or government corporations, and those who work with pay in own family - operated farms or businesses. Majority (54.2%) of the total employed population in October 2010 were wage and salary workers, with the largest percentage (40.4% of the total employed) working for private establishments. Those working for the government or government controlled corporations accounted for only 8.1 percent. In October 2009, wage and salary workers accounted for 53.5 percent.

Self-employed workers without any paid employee constituted 30.2 percent of the total employed while employers in own family-operated farm or business made up 3.8 percent. Unpaid family workers made up 11.7 percent of the total employed.

Two-thirds of employed persons work full-time

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. About 63.8 percent of the total employed persons were working full time in October 2010, while, 35.0 percent of total employed were part-time workers.

About one in every five employed persons wants more hours of work

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. The number of underemployed persons in October 2010 was estimated at 7.1 million, placing the underemployment rate at 19.6 percent. More than half (55.5%) of the total underemployed were reported as visibly underemployed or had been working for less than 40 hours during the reference week. Those working for 40 hours or more accounted for 42.5 percent of the total underemployed.

The largest proportion of the underemployed were working in the agriculture sector (43.0%) and services sector (40.5%). The underemployed in the industry sector accounted for 16.5 percent.

Unemployment rate in October 2010 is 7.1 percent

The unemployment rate in October 2010 was estimated at 7.1 percent, which is the same as that recorded in October 2009. NCR posted the highest unemployment rate at 12.6 percent and Cagayan Valley had the lowest at 2.6 percent. There were more unemployed males (63.3%) than females (36.7%). Almost half (49.3%) of the unemployed were in age group 15-24 years.

One-third (33.4%) of the unemployed were high school graduates, more than one-fifth (22.8%) were college undergraduates, while about one-fifth (19.5%) were college graduates.

Seven in every ten persons not in the labor force are females

The number of persons not in the labor force like housewives, students, persons with disability, and retirees was approximately 22 million in October 2010. This number comprised 35.8 percent of the total population 15 years old and over. Seven in every ten persons who were not in the labor force were females.

By age group, the majority of those who were not in the labor force were below 35 years of age; that is, 45.9 percent were 15 to 24 years old and 16.4 percent were 25 to 34 years old.

SUMMARY

There were 39.3 million persons in the labor force out of the estimated 61.2 million population 15 years old and over.

The employment rate in October 2010 was estimated at 92.9 percent. This figure was the same as the estimate for October 2009.

More than half or 51.7 percent of the employed population were in the services sector, 33.6 percent were in the agriculture sector and the rest (14.7%) were in the industry sector.

Laborers and unskilled workers continued to make up the largest proportion of the employed as they comprised almost one-third (32.4%) of the employed population. Farmers, forestry workers, and fishermen came second with 16.2 percent.

More than half (54.2%) of the total employed persons were wage and salary workers, 30.2 percent were self-employed workers, 3.8 percent were employers in own family-operated farm or business and 11.7 percent were unpaid family workers.

Underemployment rate was estimated at 19.6 percent in October 2010 while it was 19.4 percent in October 2009.

Unemployment rate in October 2010 was estimated at 7.1 percent.

 

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 October 2010 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-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. Underemployed - refers to employed persons who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours

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

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

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

g. Underemployment Rate - proportion of underemployed persons to total employed persons.

Starting April 2005, the new unemployment definition has been 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 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 Labor Force Survey used the 2003 Master Sample Design. Using this master sample design, the number of sample households is around 51,000 households.

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

The 1992 four-digit code for Philippine Standard Occupational Classification (PSOC) and the 1994 Philippine Standard Industrial Classification (PSIC) were used in classifying the occupation and industry, respectively.

Starting with the January 2007 LFS round, the population projections based on the 2000 Census of Population has been 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.

Starting with the January 2010 LFS round, a revised nomenclature on class of worker was adopted. 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.

Labor Force by Year

Infographics

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Wilma A. Guillen
Income and Employment Statistics Division 
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