The employment rate estimated for July 2008 was 92.6 percent. This implies that nine in every 10 persons in the labor force were employed in July 2008. The current figure is not significantly different from the July 2007 rate which is 92.2 percent. The July 2008 LFS also revealed that the labor force participation rate is 64.3 percent. This means that the size of the labor force in July 2008 was approximately 37.3 million out of the estimated 58.1 million population 15 years and older for that period. Compared to the labor force participation rate in July 2007 (63.6%), the July 2008 rate is higher.

Employment rate in the National Capital Region (87.2%), Central Luzon (90.6%) and CALABARZON (89.6%) was lower than in all other regions. As in previous LFS, the National Capital Region recorded the lowest employment rate. In terms of the labor force participation rate, the NCR (61.7%), Ilocos Region (62.3%), Central Luzon (61.8%), CALABARZON (62.9%) and ARMM (57.4%) posted lower rates compared to the rest of the regions.

More than half (50.2%) of the total employed persons in July 2008, which was estimated at 34.6 million, worked in the services sector, with those engaged in wholesale and retail trade, repair of motor vehicles, motorcycles and personal and household goods comprising the largest sub-sector (19.1% of the total employed). Workers in the agriculture sector comprised 35.0 percent of the total employed, with workers in agriculture, hunting and forestry making up the largest sub-sector (30.9% of the total employed). Only 14.8 percent of the total employed were in the industry sector, with the manufacturing sub-sector making up the largest percentage (8.5% of the total employed).

Among the various occupation groups, laborers and unskilled workers comprised the largest group, posting 32.4 percent of the total employed persons in July 2008. Farmers, forestry workers and fishermen were the second largest group, accounting for 17.7 percent of the total employed population.

Employed persons fall into any of these 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 farm or business. More than half (52.8%) of the employed persons were wage and salary workers, more than one-third (35.3%) were own-account workers, and 11.8 percent were unpaid family workers. Among the wage and salary workers, those working for private establishments comprised the largest proportion (39.0% of the total employed). Government workers or those working for government corporations comprised only 8.1 percent of the total employed, while 5.4 percent were workers in private households. Meanwhile, among the own account workers, the self-employed comprised the majority (31.1% of total employed).

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. In July 2008, six in every 10 employed persons (65.2%) were working for 40 hours or more, while part-time workers were estimated at 33.8 percent of the total employed. 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 July 2008 LFS placed the underemployment rate at 21.0 percent. This means that approximately 7.3 million employed persons were underemployed in July 2008. More than half (55.8%) of the total underemployed were reported as visibly underemployed or working for less than 40 hours during the reference week. Those working for 40 hours or more accounted for 42.7 percent of the total underemployed. Most of the underemployed were working in the agriculture sector (46.9%) and services sector (38.2%). The underemployed in the industry sector accounted for 14.9 percent. 

The unemployment rate in July 2008 was estimated at 7.4 percent compared to 7.8 percent recorded in July 2007. Among the regions, the highest unemployment rate was recorded in the NCR at 12.8 percent. The next highest rates were posted in CALABARZON (10.4%) and Central Luzon (9.4%).

The number of unemployed was higher among males (61.7%) than among females (38.3%). By age group, for every 10 unemployed persons, five (51.8%) belonged to age group 15 - 24 years while three (28.5%) were in the age group 25 - 34.

Across educational groups, among the unemployed, the high school graduates comprised more than one-third (34.1%), the college undergraduates comprised about one-fifth (20.8%), while the college graduates, 19.5 percent.

(Sgd.) CARMELITA N. ERICTA

Administrator

Technical Notes

• Starting with the July 2003 round of the Labor Force Survey (LFS), the generation of the labor force and employment statistics adopted the 2003 Master Sample Design.
• Using this master sample design, the number of samples increased from 41,000 for LFS conducted from January 1997 to April 2003 to around 51,000 sample households for July 2003 and subsequent rounds of the LFS. 
• The 1992 four-digit code for Philippine Standard Occupational Classification (PSOC) and 1994 Philippine Standard Industrial Classification (PSIC) were used in classifying the occupation and industry. 
• 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 January 2007 LFS round, the population projections based on the 2000 Census of Population 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".

Source:        Income and Employment Statistics Division

Household Statistics Department

National Statistics Office

Manila, Philippines

Page last revised: September 16, 2008