PHILIPPINE LABOR FORCE SURVEY: JULY 1998
(Preliminary Results)

SUMMARY

• Labor force is 1.5 million less than in April 1998, bringing number of unemployed down by 1.5 million and unemployment rate down from 13.3 percent to 8.9 in July.
• Services leads gains in employment in July 1998 over July 1997.
• Employment in agriculture recovers from April 1998 fall.
• Employment in industry declines in July 1998, increasing the unemployment rate to 8.9 percent from 8.7 percent in July 1997.

HIGHLIGHTS

Persons aged 15 years old and over

• There was an increase of 1.196 million (2.6%) from 45.918 million of persons aged 15 years old and over in July last year to 47.114 million in July 1998. From another point of reference, there was an increase of 302 thousand from last quarter (April 1998) to July 1998.

Of the persons 15 years old and over, there were those who joined the labor force ...

• About 30.6 million persons joined the labor force population in July 1998. This represents an increase of 439 thousand (1.5%) over July 1997. However, the labor force was 1.518 million less from April 1998 to July 1998.
• Those who chose to stay out of the labor force like housewives, students, disabled and retired persons increased by 758 thousand (4.8%) from 15.8 million in July 1997 to 16.5 million this year. Compared to April 1998 the increase was much higher at 1.820 million (12.4%).
• The labor force participation rate, or the ratio of those who joined the labor force to those who were aged 15 years and older, decreased from 65.7 percent in July 1997 to 64.9 percent in July 1998. The April 1998 rate was 68.6 percent.

Of those in the labor force, there were those who worked and those who did not ...

• Of the 439 thousand addition to the labor force in July 1998, 325 thousand were employed with employment increasing by 1.2 percent to 27.9 million from 27.5 million a year ago. Despite the increase in employment level, the corresponding employment rate dropped by 0.2 percentage point from 91.3 percent in July 1997 to 91.1 percent this year. The remaining 114 thousand (4.3%) were added to the unemployed. Correspondingly, the unemployment rate increased from 8.7 percent in July 1997 to 8.9 percent in July 1998.
• Compared to April 1998 the net decrease of 1.518 million in labor force was accompanied by the decline in unemployment of 1.537 million (-36.0%) in July 1998 due mainly to the 703 thousand workers who believed that there was no work available for them and the 766 thousand workers waiting to be rehired. There was a minimal absorption of 19 thousand (0.1%) into the ranks of the employed. The employment rate for April 1998 was 86.7 percent and the corresponding unemployment rate decreased from 13.3 percent to 8.9 percent in July 1998.

Of the employed, there were those either working in agriculture, industry or services ...

• Services absorbed more of the additional employed persons from July 1997 to July 1998 and agriculture contributed to employment generation, mostly among own-account and unpaid family workers. The number of workers in industry, on the other hand, declined. The agriculture, fishery and forestry sector absorbed most of the additional employed persons from April 1998 to July 1998 as the El Nino phenomenon eased up; the number of workers in industry and services, on the other hand, also declined.

In agriculture, fishery and forestry ...

• Employment in agriculture increased by 19 thousand (0.2%) from July 1997 to July 1998 with gains of 101 thousand unpaid family workers and 87 thousand own-account workers and a loss of 166 thousand in wage and salary workers. Employment in agriculture increased by 573 thousand (5.5%) from April 1998 to July 1998 with gains of 318 thousand own-account workers, 176 thousand unpaid family workers, and 81 thousand wage and salary workers.

In services ...

• In services, employment increased in community, social and personal services (4.8%), transportation, storage and communication (4.6%) and wholesale and retail trade (2.7%). Employment in financing, insurance, real estate and business services declined by 0.7 percent.
• Employment in the services increased by 444 thousand (3.7%) from July 1997 to July 1998 with own-account workers gaining by 346 thousand; unpaid family workers by 51 thousand; and wage and salary workers by 45 thousand. Employment in services decreased by 260 thousand (-2.1%) from April 1998 to July 1998 with wage and salary workers declining by 121 thousand, own-account workers by 73 thousand; and unpaid family workers by 69 thousand.

In industry ...

• Employment in the industry sector declined by 136 thousand (2.9%). Under this sector, construction registered the highest decrease of 106 thousand (-6.2%), followed by manufacturing with 51 thousand (-1.9%). Mining and quarrying also decreased in number but its share to total employment remained constant at 0.5 percent. Only electricity, gas and water increased in number with its share remaining at 0.5 percent.
• Employment in the industry sector decreased by 136 thousand (2.9%) from July 1997 to July 1998. Wage and salary workers decreased by 153 thousand and own-account workers, by 2 thousand while unpaid family workers increased by 19 thousand. Employment in industry decreased by 286 thousand (-6.0%) from April 1998 to July 1998. Own-account workers decreased by 142 thousand, wage and salary workers by 76 thousand and unpaid family workers by 68 thousand.

Of the employed, there were those who were paid wages and salaries, worked on their own account, or worked for the family ...

• The additions to employed persons from July 1997 to July 1998 were in the number of own-account and unpaid family workers which compensated for the decline in wage and salary workers. The own-account workers increased by 430 thousand (4.3%) and the unpaid family workers by 172 thousand (4.8%); while the wage and salary workers decreased by 276 thousand (-2.0%). The additions to employed persons from April 1998 to July 1998 were in the number of own-account and unpaid family workers which compensated for the decline in wage and salary workers. The own-account workers increased by 100 thousand (1.0%) and the unpaid family workers by 40 thousand (1.1%) while the wage and salary workers decreased by 120 thousand (-0.9%).
• The own-account and the unpaid family workers increased both in terms of levels and proportion to total employment. The share of own-account workers increased by 1.1 percentage points from 36.4 percent to 37.5 percent. Meanwhile unpaid family workers increased by 172 thousand (4.8%) and by 0.4 percentage point in its share to total.
• Wage and salary workers decreased by 276 thousand (-2.0%) and its share to total employed by 1.6 percentage points. The decrease could be attributed to the lesser number of workers in the industry sector particularly in the manufacturing sector, which had its number of wage and salary workers decreasing by 55 thousand (-2.7%).

The employed, by region ...

• Seven (7) of the sixteen (16) regions exhibited increases in employment rates with Central Luzon posting the highest increase of 1.8 percentage points from 89.5 percent in July 1997 to 91.3 percent this year.
• Five (5) of the sixteen (16) regions registered increases in employment levels with Central Luzon posting the highest increase of 103 thousand. This was followed by Southern Tagalog (88 thousand), Bicol (59 thousand) and Northern Mindanao (55 thousand).
• On the other hand, employment declined in Western Mindanao (30 thousand), Eastern Visayas (25 thousand)), Central Visayas (19 thousand), Cagayan Valley (15 thousand), and Ilocos Region (11 thousand).

The employed, by number of hours worked ...

• Full-time workers or those who worked for 40 hours and over decreased by 767 thousand (-4.1%) and in terms of share to total employment, from 68.6 percent to 65.1 percent.
• However, employed persons working less than 40 hours increased to 9.4 million from 8.4 million last year.

The employed, by occupation ...

• Only the agricultural (animal husbandry, fishermen and hunters) and production workers (transport equipment operators and laborers) posted declines of -0.2 and -1.0 percent, respectively. The other groups with increased levels and share to total employment were sales workers (186 thousand and 0.5% share), service workers (95 thousand and 0.2% share), professional workers (79 thousand and 0.2% share), and administrative workers (31 thousand and 0.1% share). Clerical workers increased by 11 thousand but its share remained steady at 4.5 percent.

Of the employed, there were those who desired more hours of work, the underemployed ...

• The underemployed persons decreased by 545 thousand (-8.6%). Its share to total employed also decreased by 2.3 percentage points, from 23.1 percent to 20.8 percent. A greater proportion of underemployed persons (62.2 %) were found working in the rural areas than in urban areas (37.8 %). Most of those in the rural areas worked for less than 40 hours.
• Almost half (48.0%) of the underemployed were in agriculture, fishery and forestry. Underemployment in industry decreased by 107 thousand (-9.9%) and services by 194 thousand (-8.7%).

And there were those who looked for work and did not find any, the unemployed ...

• The national unemployment rate in July 1998 was estimated at 8.9 percent, slightly higher by 0.2 percentage point over 8.7 percent last year.
• Among regions, the National Capital Region posted the highest unemployment rate of 14.7 percent. Central Visayas and CARAGA ranked second and third with an unemployment rate of 11.5 percent and 10.0 percent, respectively.
• The number of unemployed persons increased from 2.6 million last year to 2.7 million this year.