Employment Rate in July 2012 is Estimated at 93.0 Percent

Reference Number: 2012-075
Release Date: September 18, 2012


Results from the July 2012 Labor Force Survey (LFS)



July 20121/

July 2011

Population 15 years and over (in 000) 2/



Labor Force Participation Rate (%)



Employment Rate (%)



Unemployment Rate (%)



Underemployment Rate (%)



                       1/ Estimates for July 2012 are preliminary and may change.             

                       2/ Population 15 years and over is from the 2000 Census-based population projections. 


The results of the July 2012 Labor Force Survey (LFS) recorded an estimate of 37.6 million employed persons, which translated to an employment rate of 93.0 percent.  This rate is almost the same with the reported estimate of 92.9 percent in July 2011.  Among the regions, Cagayan Valley recorded the highest employment rate of 96.8 percent, followed by MIMAROPA and Zamboanga Peninsula (95.9% each).  The lowest employment rate was recorded in National Capital Region (NCR) with 90.1 percent.

The country had an estimate of 63.1 million population aged 15 years and over in July 2012.  Out of this estimate, 40.4 million persons were in the labor force, or those who were either employed or unemployed.  These figures correspond to a labor force participation rate (LFPR) of 64.0 percent.  The LFPR in July 2011 was 64.3 percent.  Across the region, LFPR was highest in Northern Mindanao at 71.0 percent, while the lowest was reported in Autonomous Region in Muslim Mindanao (ARMM) at 54.5 percent.

Of the estimated 37.6 million employed persons in July 2012, those who worked in the services sector comprised the largest proportion, which posted more than half or 53.3 percent of the estimated employed persons.  Among the persons who worked in the services sector, those engaged in wholesale and retail trade; repair of motor vehicles and motorcycles comprised the highest percentage (18.6% of total employed).

The employed persons engaged in agriculture sector appeared to be the second largest group, which accounted for 30.9 percent of the total employed.  About 16.0 percent of the total employed was consisted of workers in the industry sector, with the manufacturing (8.5% of the total employed) and construction (6.1% of the total employed) sub-sectors having the highest proportions.

Among the major occupation groups, laborers and unskilled workers contributed the largest group indicating 33.2 percent of the total employed persons in July 2012.  Farmers, forestry workers and fishermen came next with a share of 13.7 percent of the total employed.

Employed persons fall into any of these categories: wage and salary workers, self-employed workers without any paid employee, employer in own family-operated farm or business, and unpaid family workers.  Wage and salary workers are those who work for private households, private establishments, government or government-controlled corporations, and those who work with pay in own family-operated farm or business.  The majority (59.1%) of the total employed population in July 2012 were wage and salary workers, with the largest percentage (45.4% of total employed) working for private establishments. Those working for the government or government-controlled corporations accounted for only 8.4 percent while those working for private households comprised 4.9 percent.  In July 2011, wage and salary workers accounted for 56.3 percent of the total employed.

Self-employed workers without any paid employee constituted 27.5 percent of the total employed in July 2012, while employers in own family-operated farm or business made up 4.0 percent share.  The unpaid family workers accounted for 9.4 percent of the total employed.

Employed persons are classified as either full-time workers or part-time workers.  Full-time workers are those who work for 40 hours or more while part-time workers work for less than 40 hours.   Of the total employed persons in July 2012, 65.6 percent were working full time while 33.7 percent were part-time workers.

Employed persons who express the 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 are considered underemployed. The number of underemployed persons in July 2012 was estimated at 8.5 million placing the underemployment rate at 22.7 percent. The underemployment rate in July 2011 was estimated at 19.1 percent.  The visibly underemployed persons or those working for less than 40 hours during the reference week in July 2012 accounted for 53.5 percent of the total underemployed.  Those working for 40 hours or more accounted for 45.4 percent.  A large percentage of the underemployed were working in the services sector (42.5%) and agriculture sector (41.5%).  The underemployed in the industry sector accounted for 16.0 percent.

The unemployment rate in July 2012 was estimated at 7.0 percent, which is almost similar from the rate reported in July 2011 (7.1%).  NCR posted the highest unemployment rate at 9.9 percent while Cagayan Valley posted the lowest at 3.2 percent.  Among the unemployed persons, there were more males (62.1%) than females (37.9%).  Majority (51.2%) of the unemployed persons belong to age group 15-24 years.

With regard to the highest grade completed, one-third (33.3%) of the unemployed persons were high school graduates, 13.9 percent were college undergraduates, while 19.2 percent were college graduates.                       





Technical Notes


  • Starting July 2003, the Labor Force Survey (LFS) adopted the 2003 Master Sample Design, with a sample size of approximately 50,000 households.
  • 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.
  • Additional codes for highest grade completed were incorporated in the January 2012 LFS questionnaire.
  • Question on vocational course was also introduced in the January 2012 LFS questionnaire.
  • Starting April 2005, the new unemployment definition was adopted per NSCB Resolution Number 15 dated October 20, 2004.  As indicated in the said resolution, the unemployed include all persons who are 15 years and over as of their last birthday and are reported as: (1) without work and currently available for work and seeking work; or (2) without work and currently available for work but not seeking work for the following reasons:
  1. Tired/believed no work available
  2. Awaiting results of previous job application
  3. Temporary illness/disability
  4. Bad weather
  5. Waiting for rehire/job recall
  • Starting with the July 2007 LFS round, the population projections based on the 2000 Census of Population 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”.

Labor Force by Year

Contact Us

Income and Employment Statistics Division 
Social Sector Statistics Service
 J.Luis@psa.gov.ph   +632 8376 2092