Vol. 19 No. 1 January 2015 THE 2014 EMPLOYMENT SITUATION (THE YEAR IN REVIEW) Overview The 2014 average annual employment data showed mixed results for the country’s labor market. On the positive note, employment level grew by 2.8% compared a year ago - a net gain or employment generation that exceeded one million. Employment was boosted by robust growth in industry (4.1%) coupled by the sustained growth in services (3.1%) and modest recovery in agriculture (1.7%). Furthermore, both the rates of unemployment and underemployment eased slightly from last year. Amid the expansion, the quality of employment remained a key challenge. Employment growth this year was largely driven by the rise in part-time employment (9.1%) alongside the increase in the number of self-employed persons and unpaid family workers. As a result, the mean hours of work was down (-2.4%) from last year which parallels the slowdown in the country’s gross domestic product (GDP) in 2014. Figures cited in this report are preliminary and unless indicated represent the average of the four (4) rounds of the Labor Force Survey (LFS) conducted by the Philippine Statistics Authority (PSA) in the months of January, April, July and October. The use of average for estimating annual data from the LFS is based on NSCB Resolution No. 9 s. 2009 dated July 6, 2009 (Approving and Adopting the Official Methodology for Generating Annual Labor and Employment Estimates). Note also that the estimates for both periods under review exclude Region VIII or Eastern Visayas for comparability. The January 2014 excluded estimates for Region VIII because the LFS was not conducted in this region as a consequence of typhoon Yolanda. For the subsequent rounds, the LFS was not conducted for Leyte province. About a million additional persons joined the labor market in 2014 The country’s labor force grew by an average of 2.5% or an addition of 962,000 persons in 2014. This placed the total working population in the active workforce at 40.1 million. The figure corresponds to a higher labor force participation rate (LFPR) of 64.4% than last year’s 63.9%. (Table 4) The increase in LFPR was higher among women (+0.6 percentage point) than men (+0.4 percentage point). By age cohort, the increase in rates was observed to be at the same pace (0.5 percentage point) for the three broad age TABLE 1 – Key Employment Indicators, Philippines: 2013-2014 (In Thousands Except Rates) INDICATOR Household population 15 years old and over Labor force - Employed persons - Unemployed persons Underemployed persons - Visibly Underemployed Not in the Labor Force 2014 p 62,189 40,050 37,310 2,740 6,870 4,056 22,139 2013 61,176 39,088 36,286 2,801 6,912 3,914 22,088 Labor force participation rate (%) Unemployment rate (%) Underemployment rate (%) - Visible Underemployment rate (%) 64.4 63.9 6.8 18.4 7.2 19.0 10.9 10.8 Mean hours of work 40.9 41.9 Year-onYear Change 1,013 962 1,024 (61) (42) 142 51 Note: The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. p Preliminary . Source of basic data: Philippine Statistics Authority , Labor Force Survey . LABSTAT Updates (Vol. 19 No. 1) Page 2 of 9 brackets 15-24 years old, 24-54 years old and 55 years old and over. New employment exceeded one million generation The full-year employment growth rate across the four (4) survey rounds stood at 2.8% as total employed persons rose from 36.3 million to 37.3 million. This translates to 1.0 million new employment generation in 2014. (Table 3) § § § Employment grew the fastest in the industry sector at 4.1% (+237,000) on the back of the strong growth in construction (+184,000) alongside the modest growth in manufacturing (+78,000). Meanwhile, small losses occurred in mining and quarrying (-12,000); electricity, gas, steam and air conditioning supply (-6,000); and water supply; sewerage, waste management and remediation activities (-7,000). The services sector expanded by 3.1% (+603,000) with the biggest contribution coming from wholesale and retail trade (+228,000). Smaller gains were also noted in accommodation and food service activities (+79,000); administrative and support service activities (+68,000); financial and insurance activities (+51,000); and education (+49,000). Together, these subsectors accounted for more than two-thirds (78.8%) of total employment generated in this sector. With less destructive typhoons this year, employment in agriculture managed to post modest recovery from previous year’s slump: 1.7% (+168,000) in agriculture, forestry and hunting and 1.3% (+16,000) in fishing. Vulnerable employment rose § Much of the gains in employment this year occurred among selfemployed persons (4.1% or +407,000) and unpaid family workers (8.0% or +292,000). Together, they contributed more than two-thirds (68.3%) to overall growth in employment this year. Their proportion to total employment (a millennium development goal indicator) was up to 38.6% from 37.8% in 2013. (Table 3a) The growth in wage and salary employment slowed down considerably this year at just 1.5% (+329,000). The bulk of the increase occurred in private establishments (82.7% or +272,000). Employment growth largely driven by part-time work § Another weak spot is the surge in part-time employment which rose sharply by 9.1% or more than a million (1.1 million) while persons in full-time employment fell slightly from last year (-227,000). (Table 3a) As a consequence, the mean hours of work in a week fell by a full 1.0 hour to 40.9 – this compares with the slowdown in the economy this year. § By occupation, the top three gainers were farmers, forestry workers and fishermen (+339,000); service workers and shop and market sales workers (+185,000); and clerks (+165,000). LABSTAT Updates (Vol. 19 No. 1) § Page 3 of 9 Employment gain was broad base occurring in all regions except Region IX which posted a decline (-10,000). The biggest gainers were Region IV-A (+231,000), Region VI (+147,000) and Region VII (+114,000). (Table 6) Underemployment of change from last year TABLE 2 - Total Underemployed by Sector, Philippines: 2013–2014 2014 p No. (‘000) % Share Rate (%) 2013 No. (‘000) % Share Rate (%) Change (‘000) All Sectors 6,870 100.0 18.4 Sector Agriculture Industry Services 2,837 41.3 25.3 1,195 17.4 20.0 2,837 41.3 14.1 6,912 100.0 19.0 2,896 41.9 26.3 1,127 16.3 19.6 2,889 41.8 14.5 (42) (59) 68 (52) Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority , Labor Force Survey. § § § little Underemployment rate stood at 18.4% - down marginally by 0.6 percentage point from last year’s 19.0%. The decline was accompanied by reduction in the total number of underemployed persons by 42,000 to 6.9 million. ITEM (11.1%), Region II (11.2%) and ARMM (11.7%). (Table 6) The incidence of underemployment was highest in the agriculture sector in terms of rate (25.3%). The rates in industry (20.0%) and services (14.1%) were relatively lower. Between 2013 and 2014, underemployment increased only in the industry sector (+68,000). Nine regions registered underemployment rate above the national average with the highest in Region V (34.9%), Region X (25.7%) and Caraga (25.2%). The lowest underemployment rate was recorded in NCR Between 2013 and 2014, underemployment rate improved in twelve regions most notably in Region I (-4.0 percentage points or ppt) and Region IV-B (-3.0 ppt). Underemployment rate worsened in Region VII (+3.3 ppt) and Region XI (+2.0 ppt). Little changes were observed in the rest of the regions. Unemployment rate fell below 7.0% The unemployment rate in 2014 dipped by 0.4 percentage point to 6.8%, the lowest point recorded since 2006. This translates to 2.7 million unemployed persons representing a decrease of 61,000 persons from a year ago. (Table 1) § Unemployment is primarily a problem of the youth. Largely inexperienced, they comprised nearly one-half (49.1%) of total unemployed. This figure was 0.6 percentage point higher than last year. (Table 5) § Men continued to dominate the unemployed as they comprised about two-thirds (63.6% or 1.7 million) of the total unemployed workforce, i.e., two in every three unemployed were men. § More than one-third (35.3% or 967,000) were college educated, of which 21.6% or 593,000 were graduates. A higher proportion of the unemployed were high school graduates or undergraduates (44.0% or 1.2 million) while those who completed post secondary education accounted for just 8.3% (226,000). LABSTAT Updates (Vol. 19 No. 1) § Only the National Capital Region posted a double-digit unemployment rate (10.4%) – the highest across regions. Three other regions have unemployment rates higher than the national average rate: Region I (8.4%), Region III (8.3%) and Region IV-A (8.2%). Regions with low unemployment rates were ARMM (3.5%), Region II (3.7%) and Region IX (3.7%). (Table 6) Page 4 of 9 § Compared with last year, unemployment rate eased in nine regions notably in Region XI (1.1 ppt) and ARMM (1.1 ppt). Other regions registered small increases in unemployment except CAR which posted a 0.9 ppt increase. FOR INQUIRIES Regarding this report contact EMPLOYMENT AND MANPOWER STATISTICS DIVISION at 527-3000 loc. 312/313 Regarding other statistics and technical services contact PSA- INTRAMUROS DATABANK at 527-3000 loc. 317 Or Write to PSA-Intramuros c/o Databank, 3/F DOLE Bldg. Gen. Luna St., Intramuros, Manila, 1002 FAX 527-9324 E mail: bles_emsd@dole.gov.ph Website at http://www.bles.dole.gov.ph LABSTAT Updates (Vol. 19 No. 1) Page 5 of 9 TABLE 3 - Employed Persons by Major Industry Group, Philippines: 2013 and 2014 (In Thousands Except Percent) Percent Change (%) 2014 p 2013 Increment EMPLOYED PERSONS 37,310 36,286 1,024 2.8 MAJOR INDUSTRY GROUP Agriculture Agriculture, forestry and hunting Fishing 11,212 9,942 1,269 11,028 9,775 1,253 184 168 16 1.7 1.7 1.3 5,987 229 3,147 84 5,750 241 3,069 89 237 (12) 78 (6) 4.1 (5.0) 2.5 (6.2) 51 2,477 58 2,292 (7) 184 (12.8) 8.0 20,112 19,508 603 3.1 7,010 2,625 1,637 352 487 169 209 1,070 6,783 2,627 1,558 333 435 171 191 1,001 228 (2) 79 19 51 (1) 18 68 3.4 (0.1) 5.1 5.6 11.8 (0.8) 9.5 6.8 1,876 1,218 475 348 2,114 1,843 1,169 453 338 2,096 33 49 22 10 18 1.8 4.2 4.8 2.9 0.8 520 1 505 4 15 (2) 3.0 (62.8) INDICATOR Industry Mining and quarrying Manufacturing Electricity, gas, steam and airconditioning supply Water supply; sewerage, waste management and remediation activities Construction Services Wholesale and retail trade; repair of motor vehicles and motorcycles Transportation and storage Accommodation and food service activities Information and communication Financial and insurance activities Real estate activities Professional, scientific and technical activities Administrative and support service activities Public administration and defense; compulsory social security Education Human health and social work activities Arts, entertainment and recreation Other service activites Activities of households as employers; undifferentiated goods-and-servicesproducing activities of households for own use Activities of extraterritorial organizations and bodies Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority, Labor Force Survey. LABSTAT Updates (Vol. 19 No. 1) Page 6 of 9 TABLE 3a - Employed Persons by Major Occupation Group, Class of Worker and Hours Worked, Philippines: 2013 and 2014 (in Thousands Except Percent) Percent Change (%) INDICATOR 2014 p 2013 EMPLOYED PERSONS 37,310 36,286 1,024 6,019 1,876 966 2,349 4,673 4,977 2,558 1,967 11,806 118 5,888 1,805 963 2,184 4,488 4,638 2,528 1,983 11,706 103 131 71 3 165 185 339 30 (15) 100 14 0 2.2 4.0 0.3 7.5 4.1 7.3 1.2 (0.8) 0.9 13.8 21,701 1,881 16,780 21,372 1,883 16,508 329 (2) 272 1.5 (0.1) 1.6 2,922 2,857 65 2.3 118 10,448 1,209 3,952 124 10,041 1,213 3,660 (6) 407 (4) 292 (5.0) 4.1 (0.3) 8.0 Proportion of self-employed and unpaid family workers in total employment 38.6 37.8 HOURS WORKED IN A WEEK At work Worked less than 40 hours (Part-time employment) Worked 40 hours or longer (Full-time employment) With job, not at work 36,802 13,573 23,230 508 35,898 12,442 23,457 388 904 1,131 (227) 120 2.5 9.1 (1.0) 30.8 40.9 41.9 (1.0) (2.4) MAJOR OCCUPATION GROUP Officials of government and special-interest organizations, corporate executives, managers, managing proprietors, and supervisors Professionals Technicians and associate professionals Clerks Service workers and shop and market sales workers Farmers, forestry workers and fishermen Trades and related workers Plant and machine operators and assemblers Laborers and unskilled workers Special occupations CLASS OF WORKER Wage and salary workers Worked for private household Worked for private establishment Worked for government and government-controlled corporation Worked with pay in own family-operated farm or business Self-employed without any paid employee Employer in own family-operated farm or business Worked without pay in own family-operated farm or business Mean number of hours worked in a week Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority, Labor Force Survey. Increment 2.8 LABSTAT Updates (Vol. 19 No. 1) Page 7 of 9 TABLE 4 - Summary Statistics on Household Population 15 years Old and Over and Labor Force, Philippines: 2013 and 2014 (In Thousands Except Rates) INDICATOR TOTAL Total Population 15 Years Old and Over Labor Force 2014 p 2013 Increment 2014 p 2013 62,189 61,176 1,013 40,050 39,088 30,969 31,220 30,455 30,721 514 499 24,286 15,765 18,604 34,073 9,509 18,283 33,551 9,339 3 321 522 170 - 8,513 26,414 5,123 - Labor Force Participation Rate (%) 2014 p 2013 962 64.4 63.9 0.5 23,750 15,338 536 427 78.4 50.5 78.0 49.9 0.4 0.6 8,274 25,826 4,988 - 239 588 135 - 45.8 77.5 53.9 - 45.3 77.0 53.4 - 0.5 0.5 0.5 - Increment Increment SEX Male Female AGE GROUP 15-24 years old 25-54 years old 55 years old and over Not reported 3 Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority, Labor Force Survey. LABSTAT Updates (Vol. 19 No. 1) Page 8 of 9 TABLE 5 - Summary Statistics on Unemployment, Philippines: 2013 and 2014 (In Thousands Except Rates/Percent) 2013 Percent Share (%) 2013 2014 p 2014 p 2,740 2,801 100.0 100.0 40,050 39,088 6.8 7.2 SEX Male Female 1,743 997 1,754 1,048 63.6 36.4 62.6 37.4 24,286 15,765 23,750 15,338 7.2 6.3 7.4 6.8 AGE GROUP 15 - 24 years old 25-54 years old 55 years old and over 1,347 1,287 107 1,359 1,329 114 49.1 46.9 3.9 48.5 47.4 4.1 8,513 26,414 5,123 8,274 25,826 4,988 15.8 4.9 2.1 16.4 5.1 2.3 HIGHEST GRADE COMPLETED No Grade Completed Elementary Undergraduate Graduate High School Undergraduate Graduate Post Secondary Undergraduate Graduate College Undergraduate Graduate 10 331 145 186 1,206 297 909 226 33 194 967 374 593 13 358 161 196 1,249 319 929 226 50 176 956 388 568 0.3 12.1 5.3 6.8 44.0 10.9 33.2 8.3 1.2 7.1 35.3 13.7 21.6 0.5 12.8 5.8 7.0 44.6 11.4 33.2 8.1 1.8 6.3 34.1 13.8 20.3 INDICATOR Unemployed Persons 2014 p TOTAL Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority, Labor Force Survey. Labor Force 2013 Unemployment Rate (%) 2013 2014 p LABSTAT Updates (Vol. 19 No. 1) Page 9 of 9 TABLE 6 - Labor Force, Employment, Unemployment and Underemployment by Region Philippines: 2013 and 2014 (In Thousands Except Rates) Labor Force REGION 2014 p No. LFPR (%) Employment 2013 No. LFPR (%) 2014 p No. Rate (%) Unemployment 2013 No. Rate (%) 2014 p No. Rate (%) Underemployment 2013 No. Rate (%) 2014 p No. Rate (%) 2013 No. Rate (%) 40,050 64.4 39,088 63.9 37,310 93.2 36,286 92.8 2,740 6.8 2,801 7.2 6,870 18.4 6,912 19.0 NCR 5,249 64.2 5,129 63.5 89.6 4,603 89.7 547 10.4 527 10.3 523 11.1 556 12.1 CAR I - Ilocos Region 784 2,187 67.1 61.7 770 2,130 67.1 61.3 4,702 741 2,003 94.5 91.6 735 1,954 95.4 91.7 43 184 5.5 8.4 35 176 4.6 8.3 99 320 13.3 16.0 104 391 14.1 20.0 II - Cagayan Valley III - Central Luzon IVA - CALABARZON 1,539 4,450 5,528 66.9 62.3 65.5 1,523 4,370 5,331 67.0 62.0 64.5 1,482 4,080 5,073 96.3 91.7 91.8 1,475 3,990 4,842 96.8 91.3 90.8 57 369 455 3.7 8.3 8.2 48 379 489 3.2 8.7 9.2 166 552 951 11.2 13.5 18.7 190 579 867 12.9 14.5 17.9 IVB - MIMAROPA V - Bicol Region VI - Western Visayas 1,341 2,447 3,359 67.2 62.8 63.9 1,293 2,452 3,235 66.3 63.9 62.7 95.4 93.8 94.0 1,241 2,292 3,011 95.9 93.5 93.1 62 152 201 4.6 6.2 6.0 53 160 224 4.1 6.5 6.9 261 801 688 20.4 34.9 21.8 290 855 682 23.4 37.3 22.7 VII - Central Visayas VIII- Eastern Visayas IX - Zamboanga Peninsula 3,270 1,438 65.8 63.8 3,160 1,445 64.7 65.1 1,280 2,295 3,158 3,075 94.0 96.3 2,961 1,395 93.7 96.6 195 53 6.0 3.7 199 50 6.3 3.4 567 274 18.4 19.8 448 304 15.1 21.8 X - Northern Mindanao XI - Davao Region 2,114 2,051 69.4 65.4 2,050 1,989 68.3 64.2 1,385 1,991 1,932 94.2 94.2 1,934 1,851 94.3 93.1 123 119 5.8 5.8 117 138 5.7 6.9 512 372 25.7 19.3 497 319 25.7 17.3 XII - SOCCSKSARGEN Caraga ARMM 1,795 1,158 1,340 65.4 65.9 56.9 1,769 1,152 1,289 65.5 66.5 56.0 1,730 1,091 1,293 96.4 94.2 96.5 1,691 1,083 1,229 95.6 94.0 95.4 65 67 47 3.6 5.8 3.5 78 69 59 4.4 6.0 4.6 355 275 152 20.5 25.2 11.7 384 293 152 22.7 27.1 12.4 PHILIPPINES Notes: 1. The annual estimates for 2013 and 2014 exclude Region VIII or Eastern Visayas. 2. Details may not add up to totals due to rounding. p Preliminary. Source of basic data: Philippine Statistics Authority, Labor Force Survey.