Release Date :
Reference Number :
2016-030
Three in five persons aged 15 years and over are in the labor force
The population 15 years old and over in July 2015 is estimated at 66.6 million (Table 1). Of this number, 41.9 million were in the labor force (Table 2 and Table 3). The labor force consists of the employed and the unemployed persons. The labor force participation rate in July 2015 is estimated at 62.9 percent. Among the regions, Autonomous Region in Muslim Mindanao (ARMM) had the lowest LFPR at 53.5 percent.
Employment rate is recorded at 93.5 percent
The number of employed persons in July 2015 was estimated at 39.2 million (Table 2). This translates to an employment rate of 93.5 percent (Table 1).
Among the regions, the Central Luzon had the lowest employment rate in July 2015 at 91.2 percent (Table 1). Three other regions, namely, National Capital Region (NCR) (91.8%), Ilocos Region (91.8%), and CALABARZON (92.0%), likewise had rates lower than the national figure.
One in four employed persons belongs to age group 25 to 34 years
Of the 39.2 million employed persons in July 2015, 60.4 percent were males while 39.6 percent were females. This means that three in five employed persons were males (Table 3).
One in every four (26.8%) employed persons was in the age group 25 to 34 years (Table 3).
The second largest group of employed persons was the age group 35 to 44, making up 23.2 percent of the total employed, followed by the age group 15 to 24 with 18.0 percent (Table 3).
The majority of the employed persons work in the services sector
In July 2015, workers in the services sector comprised the largest proportion of the population who were employed, making up 55.5 percent of the total employed persons. Workers in the agriculture sector registered the second largest group accounting for 28.0 percent of the total employed while workers in the industry sector made up the smallest group registering 16.5 percent of the total employed persons (Table 4 and Figure 4).
By subsectors, workers in agriculture, hunting and forestry comprised the largest percentage (24.7%) of the total employed. Those engaged in wholesale and retail trade or in repair of motor vehicles and motorcycles constituted the second largest group, making up 18.5 percent of the total employed (Table 4).
One in three employed persons is a laborer and unskilled worker
Among the major occupation groups, the laborers and unskilled workers comprised the largest occupation group, making up 32.3 percent of the total employed population in July 2015. Officials of the government and special-interest organizations, corporate executives, managers, managing proprietors and supervisors were the second largest group, accounting for 16.4 percent of the total employed (Table 5 and Figure 5).
Wage and salary workers comprise about 62 percent of the employed population
Employed persons fall into any of these categories: (1) wage and salary workers, (2) self-employed without any paid employee, (3) employer in own family-operated farm or business and (4) 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 July 2015, the majority (62.4%) of the total employed persons were wage and salary workers, with the largest proportion (47.7%) working for private establishments. Those working for the government and government-controlled corporations accounted for 8.6 percent of the total employed while those working for private households comprised 5.7 percent. About 26.1 percent were self-employed without any paid employee, 3.4 percent were employers in own family-operated farm or business, while the unpaid family workers made up 8.1 percent (Table 6).
Among the unpaid family workers, 64.9 percent were working in the agriculture sector. In contrast, the majority (60.4%) of the wage and salary workers were employed in the services sector (Table 7 and Figure 6).
Seven in ten employed persons are full-time workers
Employed persons are classified as either full-time workers or part-time workers. Full-time workers refer to those who worked for 40 hours or more during the reference week, while those who worked for less than 40 hours were considered part-time workers. Of the total employed persons in July 2015, 67.0 percent or seven in every ten were full-time workers, while 32.2 percent were part-time workers (Table 8). Among those working full time, 66.1 percent worked for 40 to 48 hours, while 33.9 percent worked for more than 48 hours. On the average, employed persons worked for 42.4 hours during the reference week (Table 8).
One in every five employed persons desires more hours of work
By definition, employed persons who express the desire to have additional hours of work in their present job or to have an additional job, or to have a new job with longer working hours are considered underemployed.
The total number of underemployed in July 2015 was estimated at 8.2 million (Table 2 and Table 9). This corresponds to an underemployment rate of 21.0 percent (Table 1). About 4.2 million or 50.5 percent of the total underemployed were reported as visibly underemployed or those who worked less than 40 hours during the reference week. Meanwhile, underemployed working full time (worked 40 hours or more) accounted for 4.0 million or 48.5 percent of the total underemployed. The remaining 1.0 percent were underemployed who did not report for work during the reference week (Table 9).
The largest proportion of underemployed persons comprised of those working in the services sector (44.2%), followed by those in the agriculture sector (38.3%). The underemployed persons in the industry sector accounted for 17.5 percent. Among the visibly underemployed persons, the majority (50.9%) were working in the agriculture sector. In contrast, the underemployed who worked full time were mainly in the services sector (51.3%) (Table 9 and Figure 7).
Unemployment rate is estimated at 6.5 percent
In July 2015, the unemployment rate or the proportion of unemployed persons to the labor force was estimated at 6.5 percent (Table 1). Among the regions, Central Luzon (8.8%) had the highest unemployment rate, followed by NCR (8.2%), Ilocos Region (8.2%), and CALABARZON (8.0%) (Table 1 and Figure 8).
The majority (62.1%) of the unemployed were males. About half (50.3%) of the unemployed persons belong to age group 15 to 24 years, while age group 25 to 34 accounted for 29.6 percent (Table 3).
By educational attainment, 22.2 percent of the unemployed were college graduates, 13.5 percent were college undergraduates, and 33.2 percent were high school graduates (Table 10).
Seven in ten persons who are not in the labor force are women
Among the population 15 years old and over in July 2015, 24.7 million or 37.1 percent were not in the labor force (Table 3). Persons not in the labor force are the housewives, students, persons with disability, and retirees. Seven out of ten (67.9%) persons who were not in the labor force were females.
Almost half (47.0%) of those who were not in the labor force belonged to age group 15 to 24 years (Table 3).
SUMMARY
a/ Estimates based on July 2015 data which excludes the province of Leyte.
b/ The province of Leyte was not covered in the July 2014 LFS round.
- Out of the estimated 66.6 million population 15 years old and over, 41.9 million persons were in the labor force in July 2015. This resulted to a labor force participation rate of 62.9 percent.
- Among the regions, ARMM had the lowest LFPR at 53.5 percent in July 2015.
- The employment rate in July 2015 was estimated at 93.5 percent.
- Majority (55.5%) of the employed persons were in the services sector, 28.0 percent were in the agriculture sector and the remaining 16.5 percent were in the industry sector.
- Laborers and unskilled workers remained to constitute the largest proportion of the employed as they comprised one-third (32.3%) of the employed population. Officials of government and special-interest organizations, corporate executives, managers, managing proprietors and supervisors comprised the second largest occupation group at 16.4 percent.
- About three-fifths (62.4%) of the total employed persons were wage and salary workers, 26.1 percent were self-employed, 3.4 percent were employers in own family-operated farm or business, and 8.1 percent were unpaid family workers.
- Underemployment rate was estimated at 21.0 percent in July 2015.
- The largest proportion (44.2%) of underemployed persons were working in the services sector.
- About half (50.5%) of the total underemployed were reported as visibly underemployed.
- In July 2015, the unemployment rate was estimated at 6.5 percent.
- Among the regions, Central Luzon (8.8%) had the highest unemployment rate.
- The majority (62.1%) of the unemployed were males.
- About 22 percent of the total unemployed were college graduates.
Technical Notes
The Labor Force Survey (LFS) is a nationwide survey conducted quarterly by the Philippine Statistics Authority (PSA). For this release, the data being presented are based on the final results of the July 2015 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 number of sample households was about 50,000.
The concepts and definitions used in the survey can be found in PSA-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 have a new job with longer working hours.
e. Labor Force Participation Rate (LFPR) – proportion of total labor force to the total household population 15 years and over.
f. Employment Rate – proportion of employed persons to the total labor force.
g. Unemployment Rate – proportion of unemployed persons to the total labor force.
h. Underemployment Rate – proportion of underemployed persons to total employed persons.
Starting with the July 2003 round, the LFS used the 2003 Master Sample Design. Using this design, the number of sample households is around 50,000 households.
The province of Basilan is included in the ARMM while Isabela City (Basilan) is placed under Region IX, in accordance with Executive Order No. 36.
Starting with the 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.”
Starting with the January 2010 LFS round, a revised nomenclature on class of worker is 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 worker” is synonymous to the category “self-employed” in the Philippines LFS.
Starting January 2012 LFS, the codes for industry adopted the 2009 Philippine Standard Industrial Classification (PSIC). Prior to this, codes for industry used the 1994 PSIC. While for the classification of occupation, the 1992 four-digit code for Philippine Standard Occupational Classification updated in 2002 (PSOC) is still being utilized.
