Data Highlights

• Starting April 2016, the Labor Force Survey (LFS) has adopted the 2013 Master Sample Design which has a sample size of approximately 44,000 households.  It likewise used the population projections based on the 2010 Census of Population and Housing.  Other changes made were the use of the 2012 Philippine Standard Occupational Classification (PSOC) from the previously utilized 2002 Update of the PSOC. 

• Preliminary results of the July 2018 Labor Force Survey of the Philippine Statistics Authority (PSA) showed that the total household population of 15 years old and over in the country was estimated at 71.560 million wherein about 42.982 million persons were in the labor force. This placed the labor force participation rate (LFPR) at 60.1 percent, a decrease of 0.5 percentage point from the 60.6 percent registered in July 2017 despite the increment of 438,000 (1.0%) in the labor force for the period. This is due to the household population 15 years old and over growing at a faster pace than the labor force (2.0% vs. 1.0%, respectively).

• The total number of employed persons in the country was estimated at 40.659 million, an increase of 488,000 (1.2%) from the 40.171 million posted in the same period last year.  The increase in employment is attributed to the increments posted in industry and services sectors of 172,000 (2.2%) and 1.052 million (4.7%) respectively, which negates the decrement suffered by the agriculture sector (-737,000 or -7.3%).

• All of the industries in the services sector, except for accommodation and food service activities, posted increases in employment. The wholesale and retail trade; repair of motor vehicles and motorcycles accounted for the biggest slice (239,000 or 3.2%) of the 488,000 increase in employment for the period. This was followed by administrative and support service activities which recorded an increment of 192,000 (13.7%).

• In the same manner, employment in all sub-sectors under industry grew except for water supply, sewerage, waste management and remediation activities which went down by 5,000. Manufacturing accounted for the biggest increase of 142,000.

• Among the regions, substantial increases in number of employed persons were recorded in Region IV-A (214,000 or 3.7%) and the National Capital Region (116,000 or 2.3%). Meanwhile, Region VII posted the biggest decline in employment of 4.1 percent (-129,000) followed by Region VI of 2.4 percent (-76,000).

• Moreover, workers in full time employment or those working 40 hours or more per week registered a gain of 6.1 percent (1.658 million) during the period while part-time workers decreased by 1.174 million (-9.3%). Further, the number of wage and salary workers went up substantially by 1.012 million (4.0%) while self-employed workers and unpaid family workers posted declines of 4.3 percent (-480,000) and 9.8 percent (-205,000), respectively.

• Meanwhile, declines in employment were noted among males (-4,000); those aged 15-24 years old (-190,000) and those with elementary (-4,000), junior high school (-462,000) and post secondary (-101,000) levels of education.

• By major occupation group, ample increases in employment were observed in service and sales workers (302,000 or 5.2%), managers (291,000 or 4.7%) and technicians and associate professionals (204,000 or 13.1%) negating the considerable drop in number of employed skilled agricultural, forestry and fishery workers of 609,000 (-11.2%).

• About 7.005 million workers were underemployed or those employed persons who expressed 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 in July 2018.  This translates to an underemployment rate of 17.2 percent, higher by 0.9 percentage point than the 16.3 percent rate registered the previous year.

• Invisibly underemployed or those working 40 hours or more and still wanting additional hours of work during the reference week accounted for 3.703 million, an increase of 601,000 (19.4%) from the 3.101 million invisibly underemployed in July 2017. Meanwhile visibly underemployed or those working less than 40 hours numbered 3.302 million for the period, which was 138,000 less than the 3.440 million registered a year ago.

• Regions with the highest underemployment rates during the period were Region V (28.0%), Region VIII (27.2%), Region IX and CARAGA (both with 25.8%) and Region X (23.5%).  On the other hand, the National Capital Region posted the lowest and the only single digit underemployment rate at 8.0 percent in July 2018.

• The number of unemployed persons was placed at 2.323 million, a decline of 50,000 from the 2.373 million recorded in July 2017.  Unemployment rate stood at 5.4 percent in July 2018, lower by 0.2 percentage point than the rate posted in the same period last year at 5.6 percent.  Among regions, Region I (6.5%), Region III (6.3%), Regions IV-A and V (both with 6.3%) and National Capital Region (6.1%) registered the highest unemployment rates.

• Among the unemployed persons for the period, 61.1 percent (1.420 million) were males while the age group 15 to 24 years old accounted for 1.040 million or 44.8 percent of the total unemployed.  Except for the young workers, all age groups posted higher number of unemployed person, with the age group 35 to 44 years incurring an increase of 27,000 (11.1%).  By highest grade completed, bulk of the unemployed were in junior high school (928,000 or     40.0%) and those that have reached college level of education (853,000 or 36.7%).

• Starting 2018, the Labor Turnover Survey (LTS) which is conducted quarterly by the PSA covers agricultural and non-agricultural establishments employing 20 and over workers nationwide. Labor turnover rate was posted at 1.58 percent. The accession rate of 9.30 percent implied that 93 workers for every 1,000 employed were hired for business expansion or replacement of separated workers while the separation rate of 7.72 percent means that 77 workers were either laid-off or quit their jobs during the period.

• All major sectors posted positive labor turnover rates for the period with the industry sector posting the highest rate at 3.47 percent as all its subsectors recorded positive labor turnover rates.  This was followed by the agriculture, forestry and fishing at 2.01 percent and the services sector at 0.95 percent.

• The index of employment in non-agricultural industries was posted at 187.2 in first quarter of 2018, 2.7 index points higher than 184.5 from the same quarter last year.

• The index of compensation per employee in non-agricultural industries at constant 1978 prices was reported at 116.8 in first quarter of 2018, 0.9 index points higher than the 115.9 posted during the same period last year.  Among industries, private services recorded the highest index of compensation at 335.3 index points while manufacturing registered the lowest index at 51.7.

• The growth of the country’s Gross Domestic Product (GDP) during the second quarter of 2018 slowed down as it registered an increase of 6.0 percent from 6.6 percent during the same period last year. The Gross National Income (GNI) likewise posted a lower growth of 5.8 percent from 6.6 percent registered during the 2nd quarter of 2017.

• The net inward foreign investments recorded by the Bangko Sentral ng Pilipinas (BSP) for the 2nd quarter of 2018 totaled to US$3.150 billion, an increase of US$63 million from the same period last year. The increment was the result of the growth in the net foreign direct investment of US$1.026 billion for the 2nd quarter of 2018.

• The labor productivity at constant 2000 prices in 2017 reached P214,849, a growth of 8.4 percent from 2016.  The highest growth rate was recorded in the agriculture, hunting, forestry and fishing at 12.1 percent.

• Among regions, nine regions had labor productivity growth rates higher than the national growth rate of 8.4 in 2017.

• Based on the 2017 List of Establishments, the country has a total of 924,721 establishments nationwide in 2017. Across regions, one in every five establishments is found in the National Capital Region accounting for 21.0 percent or 194,134 of total establishments. This was followed by Region IV-A and Region III with 15.0 percent (138,465) and 11.2 percent (103,634) shares, respectively.

• Among sectors, majority of these establishments are engaged in the non-industrial sector at 85.6 percent, followed by the industrial sector at 13.4 percent, with the agriculture, forestry and fishing sector reporting the least share at 1.0 percent. Among major industry groups, wholesale and retail trade; repair of motor vehicles and motorcycles posted the highest share at 45.9 percent (424,061).

• Classified by employment size, majority or nine out of every ten establishments (89.6%) have employment size of 1-9 workers. The shares of the rest of the employment sizes ranged from 6.0 percent (10-19 workers) to 0.4 percent (101-199 workers & 200 workers and more).  

• Meanwhile, the total employment generated by these establishments was recorded at 7,832,089 workers in 2017. By region, the establishments’ employment in the National Capital Region has the largest share at 37.7 percent (2,949,627). This was followed by Region IV-A at 15.3 percent (1,198,563) and Region III at 8.9 percent (700,104). Classified by sector, the employment in the non-industrial sector accounted for around three-fourths (72.9%) or 5,712,327 of the total. This was followed by the industrial sector with 24.6 percent (1,928,593) and agriculture, forestry and fishing at 2.4 percent (191,169).

• Data released by the National Wages and Productivity Commission (NWPC) on the Comparative Wages in Selected Asian Countries as of 31 August 2018 indicates that among Asian countries, Japan has the highest monthly minimum pay ranging from US$1,587.93 to US$2,064.10. South Korea and Taiwan came next with a monthly minimum wage of US$1,627.51 and US$1,094.70, respectively.

• In the case of the Philippines, a minimum wage earner receives a monthly pay ranging from US$169.99 to US$287.24 depending on which area or region the worker is employed. Indonesia (US$90.71 to US$227.55) and Vietnam (US$143.20 to US$161.74), on the other hand, provides a monthly minimum wage lower than the Philippines.

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