Three in five persons aged 15 years and over are in the labor force
The population 15 years old and over in January 2017 was estimated at 69.4 million (Table 1). Of this number, 42.1 million were in the labor force (Tables 2 and 3). The labor force consists of the employed and the unemployed persons. The labor force participation rate (LFPR) in January 2017 is estimated at 60.7 percent. Among the regions, Negros Island Region recorded the highest LFPR at 66.1 percent, while Autonomous Region in Muslim Mindanao (ARMM) had the lowest LFPR at 44.3 percent.
Employment rate is recorded at 93.4 percent
The number of employed persons in January 2017 was estimated at 39.3 million (Table 2). This translates to an employment rate of 93.4 percent (Table 1).
Four regions, namely, Ilocos Region (91.3%), National Capital Region (NCR) (91.5%), Caraga (91.5%), and CALABARZON (91.8%) had the lowest employment rates (Table 1).
One in four employed persons belongs to age group 25 to 34 years
Of the 39.3 million employed persons in January 2017, 62.3 percent were males while 37.7 percent were females. This means that three in five employed persons were males (Table 3).
One in every four (26.6%) employed persons was in the age group 25 to 34 years (Table 3).
The second largest group of employed persons was the age group 35 to 44, making up 23.1 percent of the total employed, followed by the age group 15 to 24 with 16.7 percent (Table 3).
The majority of the employed population are working in the services sector
In January 2017, workers in the services sector comprised the largest proportion of the population who were employed, making up 57.1 percent of the total employed population. Workers in the agriculture sector registered the second largest group accounting for 25.5 percent of the total employed while workers in the industry sector made up the smallest group registering 17.4 percent of the total employed population (Table 4 and Figure 4).
By subsectors, workers in agriculture, hunting and forestry comprised the largest percentage (22.5%) of the total employed. Those engaged in wholesale and retail trade or in repair of motor vehicles and motorcycles constituted the second largest group, making up 20.1 percent of the total employed (Table 4).
One in four employed persons is a worker in elementary occupations
Among the major occupation groups, the workers in elementary occupations comprised the largest occupation group, making up 25.4 percent of the total employed population in January 2017. Managers were the second largest group, accounting for 16.8 percent of the total employed (Table 5 and Figure 5).
Wage and salary workers comprise about 63 percent of the employed population
Employed persons fall into any of these categories: (1) wage and salary workers, (2) self-employed without any paid employee, (3) employer in own family-operated farm or business and (4) unpaid family workers. Wage and salary workers are those who work for private households, private establishments, government and government-controlled corporations and those who work with pay in own family-operated farm or business.
In January 2017, the majority (62.8%) of the total employed persons were wage and salary workers, with the largest proportion (49.1%) working for private establishments. Those working for the government and government-controlled corporations accounted for 8.6 percent of the total employed while those working for private households comprised 4.8 percent. About 27.2 percent were self-employed without any paid employee, 3.7 percent were employers in own family-operated farm or business, while the unpaid family workers made up 6.3 percent (Table 6).
Among the unpaid family workers, 59.2 percent were working in the agriculture sector. In contrast, the majority (62.4%) of the wage and salary workers were employed in the services sector (Table 7 and Figure 6).
Six in ten employed persons are full-time workers
Employed persons are classified as either full-time workers or part-time workers. Full-time workers refer to those who worked for 40 hours or more during the reference week, while those who worked for less than 40 hours were considered part-time workers. Of the total employed persons in January 2017, 64.8 percent or six in every ten were full-time workers, while 34.2 percent were part-time workers (Table 8). Among those working full time, 43.1 percent worked for 40 to 48 hours, while 21.7 percent worked for more than 48 hours. On the average, employed persons worked for 41.3 hours during the reference week (Table 8).
One in every five employed persons desires more hours of work
By definition, employed persons who express the desire to have additional hours of work in their present job or to have an additional job, or to have a new job with longer working hours are considered underemployed.
The total number of underemployed in January 2017 was estimated at 6.4 million (Tables 2 and 9). This corresponds to an underemployment rate of 16.3 percent (Table 1). About 3.7 million or 58.5 percent of the total underemployed were reported as visibly underemployed or those who worked less than 40 hours during the reference week. Meanwhile, underemployed working full time (worked 40 hours or more) accounted for 2.6 million or 40.0 percent of the total underemployed. About 99 thousand or 1.5 percent were underemployed who did not report for work during the reference week (Table 9).
The largest proportion of underemployed persons comprised of those working in the services sector (46.9%), followed by those in the agriculture sector (32.8%). The underemployed persons in the industry sector accounted for 20.3 percent. Among the visibly underemployed persons, the majority (44.5%) were working in the agriculture sector. In contrast, the underemployed who worked full time were mainly in the services sector (57.2%) (Table 9 and Figure 7).
Unemployment rate is estimated at 6.6 percent
In January 2017, the unemployment rate or the proportion of unemployed persons to the labor force was estimated at 6.6 percent (Table 1). Among the regions, Ilocos Region (8.7%), National Capital Region (NCR) (8.5%), Caraga (8.5%), and CALABARZON (8.2%) were the regions with the highest unemployment rates (Table 1 and Figure 8).
The majority (69.6%) of the unemployed were males. About half (44.1%) of the unemployed persons belong to age group 15 to 24 years, while age group 25 to 34 accounted for 29.6 percent (Table 3).
By educational attainment, 16.5 percent of the unemployed were college graduates, 14.6 percent were college undergraduates, and 31.4 percent were junior high school graduates, which include the high school graduates in old curriculum (Table 10).
Seven in ten persons who are not in the labor force are women
Among the population 15 years old and over in January 2017, 27.3 million or 39.3 percent were not in the labor force (Table 3). Persons not in the labor force are the housewives, students, persons with disability, and retirees. Seven out of ten (69.5%) persons who were not in the labor force were females.
Two out of five (43.4%) of those who were not in the labor force belonged to age group 15 to 24 years (Table 3).
- Out of the estimated 69.4 million population 15 years old and over, 42.1 million persons were in the labor force in January 2017. This resulted to a labor force participation rate of 60.7 percent.
- The employment rate in January 2017 was estimated at 93.4 percent.
- Majority (57.1%) of the employed persons were in the services sector, 25.5 percent were in the agriculture sector and the remaining 17.4 percent were in the industry sector.
- Workers in elementary occupations remained to constitute the largest proportion of the employed as they comprised 25.4 percent of the employed population. Managers comprised the second largest occupation group at 16.8 percent.
- About three-fifths (62.8%) of the total employed persons were wage and salary workers, 27.2 percent were self-employed, 3.7 percent were employers in own family-operated farm or business, and 6.3 percent were unpaid family workers.
- Underemployment rate was estimated at 16.3 percent in January 2017.
- In January 2017, the unemployment rate was estimated at 6.6 percent.
- Among the regions, Ilocos Region (8.7%) had the highest unemployment rate.
- The majority (69.6%) of the unemployed were males.
- About 16.5 percent of the total unemployed were college graduates.
LISA GRACE S. BERSALES, Ph.D
National Statistician and Civil Registrar General
The Labor Force Survey (LFS) is a nationwide survey conducted by the Philippine Statistics Authority (PSA) during the months of January, April, July, and October. For this release, the data being presented are based on the final results of the January 2017 round of the LFS.
The reference period used in the survey is the past seven (7) days preceding the date of visit of the enumerator. The number of sample households was about 45,000.
The concepts and definitions used in the survey can be found in PSA-ISH Bulletins. Some are given below:
- Labor Force – refers to the population 15 years old and over who contribute to the production of goods and services in the country as defined in the system of National Account production boundary. It comprises the employed and unemployed.
- Employed – refers to persons in the labor force who are reported either as at work or with a job or business although not at work. Persons at work are those who did some work, even for an hour during the reference period.
- Unemployed – refers to persons in the labor force who are reported as:
1) without work; and
2) currently available for work; and
3) seeking work or not seeking work due to the following reasons:
i) belief that no work is available, or
ii) awaiting results of previous job application, or
iii) because of temporary illness or disability, or
iv) bad weather, or
v) waiting for rehire or job recall.
The new definition of unemployed was adopted starting April 2005 per NSCB Resolution No. 15 dated October 20, 2004.
The old definition of unemployed considered only two criteria:
- Without work and looking for work; or
- Without work and not looking for work due to reasons cited in 3(i) to 3(v).
- Underemployed – refers to employed persons who express the desire to have additional hours of work in their present job or an additional job, or have a new job with longer working hours.
- Labor Force Participation Rate (LFPR) – proportion of total labor force to the total household population 15 years and over.
- Employment Rate – proportion of employed persons to the total labor force.
- Unemployment Rate – proportion of unemployed persons to the total labor force.
- Underemployment Rate – proportion of underemployed persons to total employed persons.
Starting with the July 2003 round, the LFS used the 2003 Master Sample Design. Using this design, the number of sample households is around 50,000 households.
The province of Basilan is included in the ARMM while Isabela City (Basilan) is placed under Region IX, in accordance with Executive Order No. 36.
Starting with the January 2007 LFS round, the population projections based on the 2000 Census of Population and Housing 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.”
Starting with the January 2010 LFS round, a revised nomenclature on class of worker is adopted. In the reports on previous rounds of LFS, particularly in the statistical tables on employed persons by class of worker, the self-employed and employer in own family-operated farm or business were classified as own-account workers. For the same statistical table in this report, the term own-account worker no longer appears as heading for employer and self-employed to avoid confusion. In the International Classification of Status in Employment (ICSE), the term “own-account worker” is synonymous to the category “self-employed” in the Philippines LFS.
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. While for the classification of occupation, the 1992 four-digit code for Philippine Standard Occupational Classification updated in 2002 (PSOC) is still being utilized. Question on vocational course was also introduced in the January 2012 LFS questionnaire.
Starting April 2016 round, the Labor Force Survey (LFS) adopted the 2013 Master Sample Design, with a sample size of approximately 45,000 households.
The 2012 Philippine Standard Occupational Classification (PSOC) was adopted starting April 2016. The 1992 PSOC had been used prior to April 2016.
Starting with the April 2016 LFS round, the population projections based on the 2010 Census of Population and Housing (2010 CPH) has been adopted to generate the labor force statistics.
Starting January 2017 round, Computer Aided Personal Interviewing (CAPI) using Tablet was utilized in the LFS enumeration.
Overseas Filipino Workers are not considered part of the labor force in the Philippines. Hence, in the LFS, data on economic characteristics of household members who are overseas workers are not collected. For the LFS reports, they are excluded in the estimation of the size of working population, that is, population aged 15 years and older, and in the estimation of the labor force.