PHILIPPINE LABOR FORCE SURVEY: OCTOBER 1998
(Preliminary Results)

SUMMARY

• Labor force was 1.013 million more than in October 1997, with 374 thousand finding work bringing the number of unemployed to 639 thousand and the unemployment rate to 9.6 percent. 

• Employment in services in October 1998 gained 4.8 percent over October 1997.

• Employment in agriculture in October 1998 was slightly over the level a year ago.

• Employment in industry declined by 4.7 percent in October 1998. 

HIGHLIGHTS (Preliminary Results)

Persons aged 15 years old and over� 

• There were about 47.4 million persons aged 15 years old and over in October 1998. This represents an increase of 1.201 million (2.6%) from October 1997 and an increase of 301 thousand (0.6%) from July 1998.

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

• Of the 47.4 million persons aged 15 years old and over, about 31.3 million (66.0%) joined the labor force in October 1998 which increased by 1.013 million (3.3%) over October 1997. The July 1998 labor force was lower by 685 thousand (-2.2 %).

• Those who were not in the labor force like housewives, students, disabled and retired persons increased by 189 thousand (1.2%) to 16.1 million in October 1998 from 15.9 million a year ago. However, this was 383 thousand less than the July 1998 level.

• A slight increase ( 0.5 percentage point ) in the labor force participation rate to 66.0 percent was noted in October 1998 from 65.5 percent in October 1997. This was also higher by 1.1 percentage point over the July 1998 rate.

Of those in the labor force, there were those who were employed and those who were not� 

• Out of the 1.013 million persons added to the labor force in October 1998, 374 thousand were employed from a year ago while 639 thousand were unemployed. Employed persons in October 1998 increased by 1.3 percent to 28.3 million from 27.9 million a year ago. However, the corresponding employment rate dropped by 1.7 percentage points to 90.4 percent in October 1998 from 92.1 percent a year earlier. 

• On the other hand, unemployed persons increased by 26.9 percent from 2.4 million in October 1997 to 3.0 million in October 1998. Correspondingly, the unemployment rate increased to 9.6 percent from 7.9 percent a year ago.

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

• Most of the additional employed persons were absorbed in the services sector. The number of workers in the agriculture, fishery and forestry slightly moved up while employment in industry declined. 
• Compared to July 1998, agriculture, fishery and forestry and services absorbed most of the additional employed persons with industry employment also declining.

In agriculture, fishery and forestry�

In services�
 

• Employment increased by 12 thousand (0.1%) to 11.272 million from 11.260 million in October 1997. Most of the increase was mainly contributed by wage and salary workers at 116 thousand and by unpaid family workers at 50 thousand. Own-account workers registered a decrease of 154 thousand. However, the proportion of the sector employment to total decreased to 39.9 percent from 40.4 percent.
• Employment in services recorded an increase of 575 thousand (4.8%) from October 1997 to October 1998 with the community, social and personal services gaining 335 thousand; transportation, storage and communication by 116 thousand; wholesale and retail trade by 109 thousand; and financing, insurance, real estate and business services by 15 thousand.

• Most of the increase in services sector came from wage and salary workers as the number rose to 7.8 million in October 1998 from 7.4 million in October 1997. Own- account workers increased by 128 thousand and unpaid family workers by 80 thousand.

• The industry sector registered a decline of 217 thousand (-4.7%) with construction decreasing by 130 thousand (-7.9%) followed by manufacturing with 68 thousand (-2.5%). Mining and quarrying also recorded a decline of 20 thousand (-16.1%)

• Employment in the industry sector decreased by 217 thousand (-4.7%) from October 1997 to October 1998. Wage and salary workers decreased by 191 thousand; own-account workers by 10 thousand; and unpaid family workers by 16 thousand. The 191 thousand decrease in wage and salary workers was due mainly to the 157 thousand decline in construction. Moreover lesser own-account workers (by 46 thousand) and unpaid family workers (by 23 thousand) in manufacturing added to the decreased employment in industry. 

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

• Wage and salary workers increased by 293 thousand (2.2%) and unpaid family workers by 115 thousand (3.1%) while own-account workers decreased by 34 thousand (-0.3%) from October 1997 to October 1998.

• The increase in wage and salary workers could be attributed to the bigger number of workers in the services sector particularly in community, social and personal services and transportation, storage and communication. The increase in unpaid family workers was due to agriculture, fishery and forestry and services. The decrease in own-account workers was traced to agriculture, fishery and forestry, mining, and manufacturing.

The employed, by region�

• Almost all regions exhibited increases in employment with the National Capital Region recording the highest increase of 172 thousand. Central Luzon had the second highest increase in employment with the addition of 41 thousand. Only Central Visayas and Ilocos Region registered declines in employment with decreases of 10 thousand and 4 thousand, respectively.

• However, all regions showed decreases in employment rates. The Bicol Region posted the biggest decline of 3.8 percentage points from 94.4 percent in October 1997 to only 90.6 percent this year. Central Visayas was next with a decrease of 3.6 percent from 92.4 percent last year to 88.8 percent this year.

The employed, by number of hours worked �

• The number of full-time workers decreased by 317 thousand from 18.1 million in October 1997 to 17.8 million this year. These workers who worked for 40 hours and over likewise declined in terms of share to total employment from 64.9 percent to 62.9 percent this year.

• On the other hand, those employed who worked for less than 40 hours registered an increase both in terms of levels and share to total employment. The estimate of 9.5 million (which was 34.1% of total) in October 1997 increased to 10.1 million (35.7%) this year.

The employed, by occupation�

• Only the production workers posted a decline of 140 thousand equivalent to a 2.2 percent shortfall from October 1997. All the other groups had increased levels.

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

• The number of underemployed increased by 896 thousand to 6.7 million in October 1998 from 5.8 million a year ago. The underemployment rate likewise showed an increase to 23.7 percent this year from 20.8 percent in October 1997

• Underemployed workers were mostly found working in rural areas comprising about 60.2 percent of the total underemployed. Those in urban areas accounted for 39.8 percent. A greater proportion of the underemployed in the rural areas worked for less than 40 hours while in the urban areas, a greater proportion of the underemployed worked for 40 hours and over.

• Most of the underemployed were in agriculture, fishery and forestry (47.3 %). However, this figure was lower compared to 50.4 percent last year. The underemployment increased from 957 thousand to 1.098 million in the industry sector and 1.9 million to 2.4 million in the services sector.

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

• The unemployment rate for October 1998 was 9.6 percent which was higher by 1.7 percentage points over 7.9 percent a year ago. There were 3.016 million unemployed in October this year which was an increase of 639 thousand over 2.377 million a year ago.

• Three regions posted double-digit unemployment rates. These were the National Capital Region (15.1%), Central Luzon (11.9%), and Central Visayas (11.2%). All other regions recorded single-digit unemployment rates with Cagayan Valley posting the lowest at 4.1 percent.