Note:  The methodology for the computation of annual estimates of labor and employment indicators is based on
             NSCB Resolution   NO. 9,  Approving and Adopting the Official  Methodology for Generating Annual Labor and
             Employment Estimates, using the average of the estimates of the four LFS rounds

 Source:    Philippine Statistics Authority, Annual Labor and Employment Estimates for 2013 and 2014

In 2014, the annual employment rate was estimated at 93.2 percent and the annual unemployment rate, at 6.8 percent. Meanwhile, the underemployment rate was 18.4 percent.  These annualized rates are based on the results of the quarterly Labor Force Survey (LFS) conducted in January, April, July and October of year 2014.

Out of the estimated 62.2 million population 15 years old and over in 2014, about 40.0 million were economically active or in the labor force.  This number translates to an annual labor force participation rate (LFPR) of 64.4 percent.  In the previous year, the LFPR was 63.9 percent. Among regions, Northern Mindanao registered the highest annual LFPR at 69.4 percent, while ARMM posted the lowest at 56.9 percent (Table 4). 

The annual employment rate or the proportion of employed persons to total labor force in 2014 was estimated at 93.2 percent.  This rate is slightly higher than the annual estimate in 2013, which was 92.8 percent. There were four regions with employment rate less than the annual national estimate: National Capital Region (lowest at 89.6%), Ilocos Region (91.6%), Central Luzon (91.7%) and CALABARZON (91.8%).  The regions that posted an employment rate higher than 95 percent were: the Autonomous Region of Muslim Mindanao or ARMM (highest at 96.5%), SOCCSKSARGEN (96.4%), Cagayan Valley and Zamboanga Peninsula (both at 96.3%).

The employed persons in 2014 totaled 37.3 million persons (Table 1).   Of this number, more than half (53.9%) were in the services sector with those engaged in wholesale and retail trade; repair of motor vehicles and motorcycles comprising the largest group in this sector (18.8% of the total employed).

As to occupation, the laborers and unskilled workers remained to be the largest group with about three in every ten (31.6%) of the total employed. Those who were wage and salary workers numbered 21.7 million, making up 58.2 percent of the total employed persons. Of the wage and salary workers, 16.8 million worked in private establishments making up 45.0 percent of the total employed persons.

An estimated 23.2 million persons or 62.3 percent of the total employed persons worked for 40 hours or over. Those who worked for less than 40 hours were about 13.6 million or 36.4 percent of the total employed persons. The average weekly working hours was around 40.9 hours.

In 2014, the underemployed persons or those 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 was estimated at 6.9 million (Table 2). This is equal to an underemployment rate of 18.4 percent at the national level (Tables 2 and 4). Among the regions, the Bicol Region had the highest underemployment rate (34.9%), followed by Northern Mindanao (25.7%) and Caraga (25.2%).

The unemployed persons reached 2.7 million persons resulting in an unemployment rate of 6.8 percent (Tables 3 and 4). Close to half (49.1%) of the unemployed were in the age group 15 to 24 years.  Among the unemployed, 63.6 percent were males.  By highest grade completed, among the unemployed, high school graduates comprised 33.2 percent; college graduates, 21.6 percent; and elementary graduates, 6.8 percent.  

LISA GRACE S. BERSALES, Ph.D.
National Statistician

Technical Notes

The annual labor and employment statistics presented in this release for 2013 and 2014 used the average estimates of labor and employment indicators from the four Labor Force Survey (LFS) rounds conducted by the Philippine Statistics Authority (PSA) on a quarterly basis.  For both 2013 and 2104, the annual estimates do not include Region VIII or Eastern Visayas wherein the province of Leyte was hardly hit by typhoon Yolanda in 2013.  The use of the average estimates of the four-quarter rounds of the LFS data was based on NSCB Resolution No. 9, Series of 2009 - Approving and Adopting the Official Methodology for Generating Annual Labor and Employment Estimates, approved on the 6^th day of July 2009. 

For 2013 and 2014, the methodology for annual labor and employment estimates uses the following formula to estimate employment, unemployment, underemployment and labor force participation rates:  Z_i= ( ∑_j X_ij / ∑_j Y_kj ) x 100

where

Z_i = annual estimate for the rate of i where i refers to employment, unemployment, underemployment and labor force participation  

X_ij = estimate for the population of i for the j^thround of LFS where

        i refers to employed, unemployed, underemployed and labor force, and

        j refers to the three rounds of LFS: January, April and July

         Y_kj= estimate for the population of k for the j^thround of LFS where

       k refers to labor force, employed persons and persons 15 years old and over,  and

       j refers to the three rounds of LFS: January, April and July

The official methodology was deemed the most appropriate among methodologies reviewed and evaluated for the following reasons:  a) it captures the labor and employment situation in all four quarters of the year; b) the generation or cross tabulations (e.g., by class of workers, by occupation group) is more feasible for producer of estimates; c) it is the closest method for estimating the number of persons who work four times for the entire year; and d) these estimates are being used by the Department of Labor and Employment (DOLE) and its attached agencies and regional offices for planning/formulation of intervention programs.

Source:  Income and Employment Statistics Division

                Philippine Statistics Authority