Above 60 percent of the population 15 years old and over are in the labor force
The population 15 years old and over in October 2016 was estimated at 68.7 million wherein around 43.7 million persons were reported in the labor force, that is, either employed or unemployed (Table 1 and Table 2). These figures placed the labor force participation rate (LFPR) at 63.6 percent. Among the regions, Central Visayas registered the highest LFPR at 68.1 percent, while Autonomous Region in Muslim Mindanao (ARMM) registered the lowest LFPR at 54.4 percent (Figure 1).
Employment rate is recorded at 95.3 percent
The employment rate or the proportion of employed persons to total labor force was recorded at 95.3 percent in October 2016 (Table 1). This placed the number of employed persons at nearly 41.7 million (Table 2).
Five regions, namely, CALABARZON (93.9%), National Capital Region (NCR) (94.0%), Central Luzon (94.3%), Ilocos Region (94.6%), and Central Visayas (95.0%) had employment rates lower than the national figure (Table 1 and Figure 2).
More than 60 percent of employed persons are males
In October 2016, more than 60 percent of the employed persons were males.
Around 25.9 percent of the total employed in October 2016 were in the age group 25 to 34. Those in the age group 35 to 44 made up 22.8 percent, while the 15 to 24 age group, 17.9 percent (Table 3).
More than half of the employed population are working in the services sector
In October 2016, workers in the services sector comprised more than one-half (54.6%) of the total employed population. Around 28.3 percent were in the agriculture sector and 17.1 percent were in the industry sector (Table 4 and Figure 4).
Three in every ten of total employed persons are engaged in elementary occupations
Among the various occupation groups, those engaged in elementary occupations made up the largest occupation group, accounting for 27.5 percent of the employed population. Managers were the second largest group, making up 16.6 percent of the total employed population (Table 5 and Figure 5).
Classified according to subsector or major industry groups, workers in agriculture, hunting and forestry sub-sector comprised the biggest percentage (25.4%) of the total employed. Those in the wholesale and retail trade; repair of motor vehicles and motorcycles ranked next at 19.3 percent of the total employed (Table 4).
Three in every five of the employed persons are wage and salary workers
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 2016, around 60.6 percent of the total employed persons were wage and salary workers, most of them (47.6% of the total employed) worked for private establishments and in government and government-controlled corporations (7.9%). About one-fourth (27.6%) of the total employed persons were self-employed without any paid employee or those who were engaged in self-employment. The unpaid family workers made up 8.6 percent (Table 6).
By sector, the bulk of wage and salary workers (60.9%) and self-employed (51.5%) were in the services sector. In contrast, the bulk of employer (61.9%) and unpaid family workers (67.8%) were engaged in agriculture (Table 7).
More than half 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 during the reference week while part-time workers work for less than 40 hours.
In October 2016, almost two-thirds (65.7%) of the total employed persons were working full time and the rest, part-time (33.5%) or with a job but not at work (0.8%). Among those who worked full-time, 21.8 percent worked more than 48 hours during the reference week.
One-fifth of the 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 under-employment rate or the proportion of underemployed to the total employed persons was estimated at 18.0 percent in October 2016 (Table 1). More than half (54.1%) of the total underemployed were reported as visibly underemployed or working less than 40 hours during the reference week. Those working 40 hours or more accounted for 44.7 percent of the total underemployed (Table 9).
Of the total underemployed, those working in the services sector made up 43.3 percent, while those in the agriculture sector, 39.6 percent. The underemployed in the industry sector accounted for lowest share (17.1%) of the total underemployed (Figure 7). Of the underemployed workers in the services sector, 45.2 percent were part-time workers. This is higher than the figure reported in industry (33.7%) but lower compared in agriculture (72.5%) (Table 9).
Unemployment rate is recorded at 4.7 percent
The unemployment rate or the proportion of unemployed persons to the labor force was recorded at 4.7 percent in October 2016 (Table 1). This placed the number of unemployed persons at around 2.0 million (Table 2). Among the regions, the unemployment rate in CALABARZON or Region IV-A was the highest, with 6.1 percent (Table 1 and Figure 8).
There were more male unemployed (64.0%) than female unemployed. Almost one-half (47.5%) of the unemployed were young workers or in age group 15 to 24 years (Table 3).
Across educational groups, 32.8 percent of the total unemployed were high school graduates, 7.8 percent were post secondary graduates, 13.7 percent were college undergraduates, and 20.4 percent were college graduates (Table 10).
Seven in ten persons who are not in the labor force are women
In October 2016, 36.4 percent of the population 15 years old and over were not in the labor force, i.e. housewives, students, persons with disability, and retirees, etc. Around 69.5 percent of those not in the labor force were women.
Almost one-half (45.4%) of those not in the labor force belonged to the age group 15 to 24 years (Table 3).
- Out of the estimated 68.7 million population 15 years old and over in October 2016, 43.7 million persons were in the labor force.
- The employment rate in October 2016 stood at 95.3 percent.
>> More than half (54.6%) of the employed population were in the services sector, 28.3 percent were in the agriculture sector and the rest (17.1%) were in the industry sectorThose engaged in elementary occupations made up the largest occupation group, as they comprised 27.5 percent of the employed population. Managers came next at 16.6 percent of the total employed population.
>> Three in every five (60.6%) of the total employed persons were wage and salary workers, 27.6 percent were self-employed, 3.2 percent were employers in own family-operated farm or business, and 8.6 percent were unpaid family workers.
- Underemployment rate was estimated at 18.0 percent in October 2016.
- Unemployment rate in October 2016 was recorded at 4.7 percent.
The Labor Force Survey (LFS) is a nationwide survey conducted quarterly 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 October 2016 round of the LFS.
The reference period used in the survey refers to 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:
a. Labor Force – refers to the population 15 years old and over who contribute or seek to contribute to the production of goods and services as defined in the system of National Account production boundary. 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;
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 (MS) 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 was 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 with the January 2012 LFS round, 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 44,000 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) was adopted to generate the labor force statistics.
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.