Employment Situation in July 2020

Reference Number: 2021-056
Release Date: February 5, 2021

Sixty-two percent of the population 15 years old and over are in the labor force

The number of persons who were in the labor force was at 45.9 million of the estimated 74.1 million population 15 years old and over in July 2020. This translates to a labor force participation rate (LFPR) of 61.9 percent, which means that 619 in 1000 of the population aged 15 years and over were either employed or unemployed. Northern Mindanao and had the highest LFPR with 68.8 percent, followed by Caraga with 68.6 percent. Central Visayas had the lowest LFPR with 57.7 percent. (Tables 1 and 3, and Figure 1)

Figure 1 LFS July 2020

Employment rate registers at 90.0 percent

The total number of employed persons was accounted at 41.3 million. Consequently, the employment rate or the proportion of employed persons to total labor force was estimated at 90.0 percent. (Table1)

The Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) had the highest employment rate with 96.2 percent. Five of the 17 regions, namely National Capital Region (NCR) (84.2%), CALABARZON (87.6%), Central Visayas (88.3%), Ilocos Region (88.9%), and Central Luzon (89.1%) had employment rates lower than the national figure of 90.0 percent. (Table 1, and Figure 2)

Figure 2 LFS July 2020

Employed males are higher than females

Of the estimated 41.3 million employed persons in July 2020, 61.0 percent or 610 in every 1000 were males, while the remaining 39.0 percent were females. (Table 3)

Figure 3 LFS July 2020

Among age groups, the largest number of employed persons was in age group 25 to 34 years which accounted for 27.1 percent of the total employed. The 35 to 44 age group comprised the second largest group (23.9%), followed by the 45 to 54 age group (18.8%). (Table 3, and Figure 3)

More than half of employed persons are in the services sector

Employed persons in the services sector remained the highest group estimated at 54.8 percent of the 41.3 million total employed population in July 2020. In July 2019, it was estimated at 58.2 percent of the 42.5 million employed persons.

The industry sector shared 18.8 percent to the total employment in July 2020, while 18.9 percent in July 2019. In the agriculture sector, a combined share of agriculture, forestry, and hunting, and fishing sub-sectors showed an increase from 22.9 percent in July 2019 to 26.3 percent in July 2020. (Table 4, and Figure 4)

Among the workers in the services sector in July 2020, those engaged in wholesale and retail trade; repair of motor vehicles and motorcycles made up the largest share with 21.5 percent. (Table 4)

Figure 4 LFS July 2020

More than one-fourth of employed persons are in elementary occupations

Across occupation groups, workers in elementary occupations comprised the largest share of 28.7 percent of the total employed. Service and sales workers were the second largest group of employed workers with 19.0 percent, followed by skilled agricultural, forestry, and fishery workers with 14.0 percent. (Table 5, and Figure 5)

Figure 5 LFS July 2020

 

About sixty percent of employed persons are wage and salary workers

Employed persons were categorized as wage and salary workers, self-employed 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 and government-controlled corporations and those who work with pay in own family-operated farm or business. In July 2020, the percentage of wage and salary workers was registered at 60.4 percent, which is lower than the 63.9 percent share in July 2019. Those who worked in private establishments comprised the 47.1 percent in July 2020 and 50.3 percent in July 2019. Those working in government and government-controlled corporations shared 9.2 percent in July 2020 and 9.0 percent in the same month of 2019. (Table 6)

Classified according to broad industry group, 58.7 percent of unpaid family workers were in the agriculture sector. In contrast, 58.6 percent of wage and salary workers were in the services sector. Sixty percent (60.1%) of those who were employer in own-family operated farm or business were engaged in agriculture. Also, more than half (53.8%) of self-employed without any paid employee were in the services sector. (Table 7, and Figure 6)

Figure 6 LFS July 2020

More than half of employed persons work full-time

Employed workers are classified as either full-time or part-time workers. Full-time workers are those who work for 40 hours or more, while part-time workers spend less than 40 hours per week. Full-time workers comprised the 56.1 percent of the total employed persons in July 2020. Specifically, those who worked for 40 to 48 hours had a larger proportion of 40.7 percent, and the rest (15.4%) are those who worked for 49 hours and over. Part-time workers comprised the 40.6 percent of the total employed. In July 2020, the number of part-time workers increased while the full-time workers decreased compared with that in the same month of 2019. Mean hours worked per week also decreased from 41.8 hours in July 2019 to 38.2 hours in July 2020. (Table 8)

Underemployment rate is higher at 17.3 percent

Underemployed persons were estimated at 7.1 million in July 2020. This number represented 17.3 percent of the total employed persons. Underemployed persons are employed who express the desire to have additional hours of work in their present job or to have additional job, or have a new job with longer working hours. (Table 1)

Among the broad industry group, underemployed persons were highest in the services sector at 48.2 percent. Meanwhile, the remaining 32.5 percent and 19.3 percent were in the agriculture and industry sector, respectively. (Figure 7)

Visibly underemployed, or those persons who had been working part-time or less than 40 hours a week accounted for 67.3 percent, a large percentage (81.0%) of which were in the agriculture sector. (Table 9)

Figure 7 LFS July 2020

Unemployment rate reaches 10.0 percent

Of the total 45.9 million economically active population 15 years old and over, 4.6 million were unemployed, which resulted to the country's unemployment rate of 10.0 percent in July 2020. (Tables 1 and 2)

Unemployment rates in the National Capital Region (NCR) (15.8%), CALABARZON (12.4%), Central Visayas (11.7%), and Ilocos Region (11.1%), and Central Luzon (10.9%), were higher than the national figure of 10.0 percent. (Table 1, and Figure 8)

Total unemployed persons was highest in the age group 15 to 24 years with 38.1 percent share. Additionally, more males (61.1%) were unemployed than females (38.9%) in July 2020. (Table 3)

By highest educational attainment, a high percentage (27.9%) of unemployed persons were junior high school graduates including high school graduates from the old curriculum, 24.8 percent were college graduates, and 6.2 percent were elementary graduates. (Table 10)

Figure 8 LFS July 2020

Majority of Filipinos not in the labor force are women

Thirty eight percent or 28.2 million Filipinos aged 15 years old and over in July 2020 were not in the labor force. These include housewives, students, persons with disability, and those who have retired from their employment. About seventy percent (67.4%) were women. (Table 3)

By age group, 43.3 percent of persons not in the labor force were in age group 15 to 24 years. (Table 3, and Figure 9)

Figure 9 LFS July 2020

Summary Statistics

  1. The labor force population in July 2020 was estimated at 45.9 million. This translates to a labor force participation rate (LFPR) of 61.9 percent.
  2. Total employed persons were approximately 41.3 million, registering a national employment rate of 90.0 percent.
  3. By sector, more than half or 54.8 percent of the total employed were in the services sector, 26.3 percent were in the agriculture sector, and 18.8 percent were in the industry sector.
  4. Among occupation groups, workers in elementary occupations made up the largest percentage of employed persons with 28.7 percent share of the 41.3 million total employed population.
  5. Total unemployed persons reached 4.6 million resulting to a higher unemployment rate of 10.0 percent in July 2020.
  6. Underemployment rate was estimated at 17.3 percent.

 

 

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

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