Employment Situation in October 2012 (Final Results)

Reference Number: 2013-058
Release Date: August 1, 2013

Six out of 10 persons 15 years old and over are in the labor force

There was an estimated 63.3 million population 15 years old and over in October 2012 (Table 1).  Out of this estimate, about 40.4 million persons were in the labor force or those who were either employed or unemployed (Table 2 and Table 3).  These figures correspond to a labor force participation rate (LFPR) of 63.9 percent.  The LFPR in October 2011 was 66.3 percent.  The highest LFPR was reported in Northern Mindanao while the lowest was recorded in Autonomous Region in Muslim Mindanao (ARMM) at 68.5 percent and 57.9 percent, respectively. 
 

Employment rate is recorded at 93.2 percent 

The number of employed persons in October 2012 was estimated at 37.7 million (Table 2).  This translates to an employment rate of 93.2 percent (Table 1).  Last year’s employment rate was 93.6 percent.  

Among the regions, Cagayan Valley had the highest employment rate of 97.6 percent, followed by Zamboanga Peninsula at 96.6 percent. The National Capital Region (NCR) registered the lowest employment rate of 89.0 percent (Table 1).

Employed males outnumber employed females

Of the 37.7 million employed persons in October 2012, 61.0 percent were males while 39.0 percent were females.  This means that three in five employed persons were males.
 
One in every four (26.3%) of the total employed persons were in the age group 25 to 34 (Table 3).
 
The second largest group of employed persons were in age group 35 to 44, making up 22.9 percent of the total employed, followed by the 15 to 24 age group with 19.5 percent (Table 3).
 
 

More than half of the employed persons work in the services sector

In October 2012, 52.6 percent of the total employed were working in the services sector.  Workers in the agriculture sector comprised 32.3 percent of the total employed while the remaining 15.1 percent were in the industry sector.
 
Among the subsectors of major industry groups, workers in agriculture, hunting and forestry comprised the largest percentage (28.5%) of the total employed. Those engaged in wholesale and retail trade or in repair of motor vehicles and motorcycles came next, making up 18.3 percent of the total employed (Table 4).
 
 

One out of three employed persons is a laborer and unskilled worker

Among the various occupation groups, laborers and unskilled workers comprised the largest occupation group, making up 33.3 percent of the total employed population.   Officials of the government and special interest organizations, corporate executives, managers, managing proprietors and supervisors were the second largest group, accounting for 15.9 percent of the total employed (Table 5). 
 

Wage and salary workers comprise about 57 percent of the employed population

Employed persons fall into any of these categories: 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 October 2012, majority (57.4%) of the total employed persons were wage and salary workers, with the largest proportion of them (43.7% of the total employed) working for private establishments. Those working for the government and government-controlled corporations accounted for 8.0 percent of the total employed while those working for private households comprised 5.4 percent.  About 28.0 percent were self-employed without any paid employee, while the unpaid family workers made up 10.9 percent (Table 6).
 
Among those unpaid family workers, 70.4 percent were working in the agriculture sector.
 
In contrast, majority of the wage and salary workers were in the services sector with three in every five (60.0%) of such workers belonging to that sector (Table 7).
 

 

Five in eight of the employed persons are full time workers

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 population in October 2012, majority (64.2%) were working full time, while 34.8 percent were part-time workers (Table 8).  Among those working full time, 63.8 percent worked for 40 to 48 hours, while 36.2 percent worked for more than 48 hours.
 

One in every five employed persons desires more hours of work

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 October 2012 was estimated at 7.2 million (Table 2), which resulted to an underemployment rate of 19.0 percent (Table 1).  About 56.2 percent of the total underemployed were reported as visibly underemployed or working less than 40 hours during the reference week.  Those underemployed working full time (worked 40 hours or more) accounted for 42.2 percent of the total underemployed, while the remaining 1.6 percent were underemployed who did not report for work during the reference week (Table 9). 
 
 
Of the total underemployed persons, the largest proportion were working in the agriculture sector (44.4%) and services sector (40.4%).  The underemployed persons in the industry sector accounted for 15.3 percent.  Majority of the visibly underemployed were working in the agriculture sector (56.6% of the visibly underemployed), while those underemployed who worked for full time employment were mainly engaged in services sector (51.1 percent of underemployed working for full time employment).
 

Unemployment rate at 6.8 percent in October 2012

In October 2012, the unemployment rate or the proportion of unemployed persons to the labor force was estimated at 6.8 percent (Table 1).  The unemployment rate in October 2011 was estimated at 6.4 percent.  
 
Across regions, NCR posted the highest unemployment rate at 11.0 percent while Cagayan Valley registered the lowest at 2.4 percent (Table 1).  Majority (62.1%) of the unemployed were males.  Almost half (48.5%) of the unemployed persons belong to age group 15 to 24 years (Table 3).
 
By educational attainment, 20.3 percent of the unemployed were college graduates, 12.4 percent were college undergraduates, and 33.4 percent were high school graduates (Table 10).
 

Seven in every ten persons who are not in the labor force are women

About 36.0 percent of the population 15 years old and over in October 2012 were not in the labor force.  These are the housewives, students, persons with disability, and retirees. Seven out of ten (70.0%) persons who were not in the labor force were females.
 
 
Almost half (45.3%) of those who were not in the labor force were in the youngest age group, that is, age group 15 to 24 years (Table 3). 
 

SUMMARY

 
 
  • Out of the estimated 63.3 million population 15 years old and over, there were 40.4 million persons in the labor force.
  • The employment rate in October 2012 was registered at 93.2 percent.  Last year’s employment rate was estimated at 93.6 percent.
  • About 53.0 percent of the employed population were in the services sector, 32.3 percent were in the agriculture sector and the remaining 15.1 percent were in the industry sector.
  • Laborers and unskilled workers remained to be the largest proportion of the employed as they comprised one-third (33.3%) of the employed population. Officials of government and special interest organizations, corporate executives, managers, managing proprietors and supervisors rank second with 15.9 percent.
  • Almost three-fifths (57.4%) of the total employed persons were wage and salary workers, 28.2 percent were self-employed, 3.6 percent were employers in own family-operated farm or business, and 10.9 percent were unpaid family workers.
  • Underemployment rate was estimated at 19.0 percent in October 2012.  In the same month last year, the underemployment rate was estimated at 19.1 percent.
  • In October 2012, the unemployment rate was estimated at 6.8 percent.  The unemployment rate in October 2011 was 6.4 percent.
 

TECHNICAL NOTES

The Labor Force Survey (LFS) is a nationwide survey conducted quarterly by the National Statistics Office (NSO). For this release, the data being presented are based on the final results of the October 2012 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 50,000.
 
The concepts and definitions used in the survey can be found in NSO-ISH Bulletins. Some are given below:
 
a. Labor Force – refers to the population 15 years old and over who contribute to the production of goods and services in the country. It comprises the employed and unemployed.
 
b. 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.
 
c. 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:
 
1) Without work and looking for work; or
2) Without work and not looking for work due to reasons cited in 3(i) to 3(v).
 
d. 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.
 
e. Labor Force Participation Rate (LFPR) – proportion of total labor force to the total household population 15 years and over.
 
f. Employment Rate – proportion of employed persons to the total labor force.
 
g. Unemployment Rate – proportion of unemployed persons to the total labor force.
 
h. 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 Autonomous Region in Muslim Mindanao 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 in the classification of occupation, the 1992 four-digit code for Philippine Standard Occupational Classification updated in 2002 (PSOC) was still utilized.
 
 
 

Labor Force by Year

Contact Us

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