Labor Turnover Statistics (in establishments with 20 or more workers) Philippines: Fourth Quarter 2018

Reference Number: 

2019-159

Release Date: 

Friday, May 31, 2019

The Labor Turnover Survey (LTS) is a quarterly sample survey of enterprises conducted by the Philippine Statistics Authority (PSA) since the third quarter of 2002 until 2017. The survey covered enterprises located in the National Capital Region (NCR) only.

Starting the 1st quarter of 2018, the LTS covers establishments based within and outside the National Capital Region. The survey aims to capture “job creations” and “job displacements” in business establishments in the Philippines by collecting quarterly data on accessions and separations of workers.

This report is the fourth issue on LTS with nationwide coverage. A total of 5,469 establishments served as respondents in the fourth quarter round of the 2018 LTS. The sample establishments were drawn from the 2017 List of Establishments.

LABOR TURNOVER RATES

Employment growth in establishments in the country posted at 0.8 percent 

  • The accession rate or the number of new employees hired stood at 8.0 percent out of the 4.42 million total employment for the reference quarter, surpassing the separation rate of 7.2 percent or the number of workers whose employment were terminated as percent of the total employment. Computing for the difference of the said figures yields a labor turnover rate of 0.8 percent for the period. (Table 1).
  • The said labor turnover rate, which represents the employment growth or net addition (net loss) to employment, was the same as the previous quarter.
  • These numbers infer that 80 persons were added to the workforce either by expansion of business activity or replacement of separated workers, while 72 workers were either laid off/terminated or voluntarily quit their jobs resulting to a net addition of 8 workers for every 1,000 employed to the establishment workforce.

Table 1

Services sector takes the lead in employment gain at 1.9%

  • During this quarter the services sector registered the highest labor turnover rate at 1.9 percent. Top performers for the sector were transportation and storage (3.3%), accommodation and food service activities  (3.1%), wholesale and retail trade (2.7%) and administrative and support service  activities (2.5%). On the other hand, the professional, scientific and technical activities posted an employment net loss of 0.9 percent for the period while real estate activities recorded a nil labor turnover rate. (Figure 1 and Table 2)
  • Employment gain was also observed in the agriculture, forestry and fishing at 1.3 percent resulting from an accession and separation rates of 6.1 percent and 4.8 percent, respectively.
  • Meanwhile, a negative labor turnover rate of 2.9 percent was registered in the industry sector caused by a high separation rate of 9.5 percent and relatively low accession rate of 6.6 percent. Downturn in employment were posted in construction (-6.4%), mining and quarrying (-4.0%) and  manufacturing (-2.5%).

Figure 1

Reasons for separations of employees

  • The survey also inquired on the reasons for workers' separations during the reference period. For this quarter, the top two reasons behind the separation initiated by the employers were project completion/end of contract and absence without official leave (AWOL) with shares of 47.5 percent and 24.4 percent, respectively. More reasons given for employer-initiated separations were company reorganization/downsizing (5.7%), retirement (5.4%), lack of market (3.6%), among others. (Figure 2)

Figure 2

 

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Reference Period: 

2018 Q4