Results from the July 2013 Labor Force Survey (LFS)
Based on the July 2013 Labor Force Survey (LFS), the employment rate in July 2013 is estimated at 92.7 percent. In comparison, the employment rate reported for the same month of 2012 was 93.0 percent. Among the regions, the National Capital Region (NCR) had the lowest employment rate at 89.1 percent. Three other regions, namely, Ilocos Region (91.5%), Central Luzon (91.0%), and CALABARZON (90.9%) had rates lower than the national figure.
The population aged 15 years and over in July 2013 is estimated at 64.468 million. Out of this number, 41.178 million persons were in the labor force. These figures translate into a labor force participation rate (LFPR) of 63.9 percent, which is similar to the LFPR recorded in July 2012 (64.0%). Among the regions, Autonomous Region in Muslim Mindanao had the lowest LFPR with 54.1 percent. Other regions having an LFPR significantly lower than the national figure are Ilocos Region (61.4%), Central Luzon (62.4%), and Western Visayas (61.8%).
The labor force consists of the employed and the unemployed. The number of employed persons in July 2013 was approximately 38.175 million. The majority (53.4%) of them were working in the services sector. Among the workers in this sector, those engaged in wholesale and retail trade or in the repair of motor vehicles and motorcycles comprised the largest percentage (35.2%). The number of such workers had increased by about 506 thousand, from an estimated 6.670 million in July 2012 to 7.176 million in July this year.
Those who worked in the agriculture sector comprised the second largest group making up 30.9 percent of the total employed while workers in the industry sector made up the smallest group registering 15.6 percent of the total employed. Workers in the industry sector were mostly in the manufacturing and construction sub-sectors, comprising 52.6 percent and 40.6 percent, respectively, of workers in the industry sector. Employment in the construction subsector had a marked increase of 101 thousand workers.
Among the major occupation groups, laborers and unskilled workers remained the largest group making up 32.2 percent of the total employed in July 2013. In July 2012, the laborers and unskilled workers made up 33.9 percent of the total employed in that period. There was a significant drop in their number by about 429 thousand, from approximately 12.721 million in July 2012 to 12.292 million in July this year. By comparison, the number of the second largest group of workers, composed of officials of the Government and special interest organizations, corporate executives, managers, and managing proprietors, had increased by about 817 thousand. This group accounted for 16.5 percent of the total employed in July 2013. The number of farmers, forestry workers and fishermen had likewise increased, by 118 thousand. They comprised the third largest group of workers, making up 13.1 percent of the total employed in July 2013.
Employed persons fall into any of these categories: wage and salary workers, self-employed workers without any paid employee, employers 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 July 2013 LFS results showed a drop in the number of workers in private establishments by around 294 thousand, from 17.334 million in July 2012 to 17.040 million in July this year. Such workers continued to account for the largest percentage of the total employed, that is, 44.6 percent of the total employed in July 2013 and 46.2 percent in July 2012. The second largest in number were the self-employed making up 28.3 percent of the total employed in July 2013, up from 26.4 percent in July 2012. Their number had increased considerably by 920 thousand, from 9.901 million in July 2012 to 10.821 in July this year. The unpaid family workers accounted for 10.1 percent of the total employed in July 2013, while in July 2012, they comprised 9.7 percent of the total employed. Their number had increased by 232 thousand in July 2013.
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 2013, 64.7 percent were full-time workers, while 34.5 percent were part-time workers. By comparison, in July 2012, full-time workers comprised 65.5 percent while part-time workers made up 33.8 percent. Both full-time and part-time workers had increased in number. However, the increase in the number of part-time workers (490 thousand) was almost four times that of the full-time workers (131 thousand).
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 July 2013 LFS revealed a significant drop in the underemployment rate. The underemployment rate in July 2013 was estimated at 19.2 percent, compared to last year’s estimate of 22.8 percent. In terms of number, the underemployed had decreased considerably by 1.224 million. The estimated number of underemployed in July 2013 was 7.341 million, compared to 8.565 million.
The visibly underemployed persons or those working for less than 40 hours in July 2013 accounted for 57.1 percent of the total underemployed. Those who worked for 40 hours or more made up 41.8 percent. By sector, about 42.0 percent of underemployed worked in the services sector, while 41.7 percent were in the agriculture sector. Those in the industry sector accounted for 16.3 percent.
The unemployment rate in July 2013 was estimated at 7.3 percent, while it was 7.0 percent in July 2012. Among the regions, the NCR continued to have the highest unemployment rate. The estimate for July 2013 is 10.9 percent.
Among the unemployed persons, 61.3 percent were males. Almost half (48.9%) of the unemployed persons belonged to the age group 15 to 24 years. By educational attainment, about one-fifth (21.7%) of the unemployed were college graduates, 13.6 percent were college undergraduates, and 32.8 percent were high school graduates.
CARMELITA N. ERICTA
• 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 and Housing (CPH) was adopted to generate the labor force statistics. The 2000 CPH-based population projections has been endorsed as the official figures to be utilized for planning and programming purposes per NSCB Resolution No. 7 Series of 2006, entitled “Adopting the Methodology Used in Generating the 2000 Census of Population and Housing-Based National Regional and Provincial Population Projections”.
• In the LFS, data on the economic characteristics of household members who are overseas workers are not collected because they are not considered as part of the labor force in the country. Hence, they are excluded in the estimation of the size of working population, that is, population aged 15 years and older.