ARMM Employment Situation in January 2017 (Based on the Results of July 2017 Labor Force Survey)

June 6, 2018Special Release Ref No.: 2018-021

Two 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 2.30 million, where 1.02 million persons were reported to be in the labor force. These figures placed the ARMM’s labor force participation rate (LFPR) or the proportion of total labor force to the total household population 15 years and over who contribute to the production of goods and services, that is, either employed or unemployed, at 44.3 percent in January 2017. Among the 17 regions in the country, ARMM recorded the lowest LFPR, followed by Region VIII (Eastern Visayas) and Region IX (Zamboanga Peninsula) with 56.2 percent and 56.3 percent, respectively (Refer to Fig 1).

Figure 1. Labor Force Participation Rate by Region: January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Employment rate is recorded at 95.7 percent

ARMM’s employment rate or the proportion of employed persons to the total labor force was estimated at 95.7 percent in January 2017, placing the number of employed persons at 0.97 million. Among regions in the country, ARMM and Region XII (SOCCSKSARGEN) registered the highest employment rate in January 2017. Four regions, namely, Region I (Ilocos Region) with 91.3 percent, CARAGA with 91.5 percent, National Capital Region (NCR) with 91.5 percent, and Region IV-A (CALABARZON) with 91.8 percent had the lowest employment rates.

Figure 2. Employment Rate by Region: January 2017
Source: Philippine Statistics Authority, Labor Force Survey

More than half of the employed population are working in the agriculture sector

In January 2017, workers in ARMM in the agriculture sector comprised the largest proportion of the population who are employed. These workers made up 51.0 percent of the total employed. Workers in the services sector comprised the second largest group, making up 44.8 percent of the total employed, while workers in the industry sector made up the smallest group, registering 4.2 percent of the total employed population (Fig 3).

By subsectors, workers in agriculture, hunting and forestry comprised the largest percentage at 40.9 percent of the total employed population, and those engaged in wholesale and retail trade or in repair of motor vehicles and motorcycles constituted the second largest group, making up 22.9 percent of the total employed.

Figure 3. Percent Distribution of Employed Persons by Sector: ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

One in three employed persons is a skilled agricultural, forestry and fishery workers

Among the major occupation groups, skilled agricultural, forestry and fishery worker comprised the largest occupation group, making up 35.9 percent of the total employed population in January 2017. Managers were the second largest group, accounting for 22.6 percent of the total employed (See Fig. 4).

Figure 4. Percent Distribution of Employed Persons by Occupation Group: ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Self-employed persons comprise almost 60 percent of the employed population

Employed persons fall into any of the four 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.

In January 2017, the majority (57.2 percent) of the employed persons in ARMM were the self-employed without any paid employees of the total employed. 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. The wage and salary workers made up the second largest proportion (26.4 percent) of the total employed, with those working in private establishments continuing to account for the largest share at 13.1 percent. Those who work for the government and government-controlled corporation were at 11.4 percent, while those working for private households comprised 1.9 percent. About 14.4 percent were employers in own family-operated farm or business, while the unpaid family workers made up 2.2 percent.

Figure 5. Percent Distribution of Employed Persons by Class of Workers: ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Among the female workers, 42.0 percent were self-employed without paid employee, 32.8 percent were wage and salary workers, followed by unpaid family workers at 22.7 percent and only 2.5 percent were in own family-operated business. Similar pattern of observation was observed among the male (Refer to Fig. 6).

Figure 6. Percent Distribution of Employed Persons by Sex and Class of Workers: ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Half of the total hours worked of the employed persons were rendered by age group 25 to 34 years

Of the 974 thousand employed persons in January 2017 in ARMM, 79.0 percent were males while 21.0 percent were females. This means that four in five employed persons were males. Fifty percent of the employed persons were in the age group 40 years and over. The second largest group of employed persons was the age group 30 to 39, making up 30.3 percent of the total employed, followed by the age group 20 to 29 with 13.0 percent.

Figure 7. Percent Distribution of Total Hours Worked of Employed Persons by Sex and Class of Workers: ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

More than eight in ten employed males wanted less than 40 hours of work

Of the total employed males in ARMM in January 2017, 83.9 percent wanted to work for less than 40 hours, and the remaining 16.1 percent wanted to work for more than 40 hour during the reference week. On the other hand, among female employed persons, 71.5 percent wanted less than 40 hours worked during the reference week, and only 28.5 percent wanted to work for more than 40 hours.

Figure 8. Percent Distribution of Employed Persons Wanting More Hours of Work : ARMM, January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Unemployment rate is estimated at 4.3 percent

In ARMM, the unemployment rate or the proportion of unemployed persons to the total labor force was estimated at 4.3 percent in January 2017, majority of which were males. Among regions, ARMM and Region XII (SOCCSKSARGEN) recorded the lowest unemployment rate, followed by Region VII (Central Visayas) and Region IX (Zamboanga Peninsula), both at 4.6 percent. The regions with the highest unemployment rate were Region I (Ilocos Region) with 8.7 percent, National Capital Region (NCR) with 8.5 percent, CARAGA with 8.5 percent, and Region IV-A (CALABARZON) with 8.2 percent.

Underemployment rate is estimated at 7.3 percent

ARMM’s underemployment rate or the proportion of underemployed persons to total employed persons was estimated at 7.3 percent in January 2017. Among regions, ARMM registered the lowest underemployment rate, followed by Negros Island Region (NIR) at 11.4 percent, NCR at 11.9 percent, and Region XI (Davao Region) at 14.6 percent. Four regions with the highest underemployment rate were Region VIII (Eastern Visayas) with 23.2 percent, Region XII (SOCCSKSARGEN) at 21.3 percent, Region V (Bicol Region) with 20.8 percent, and Region IV-B (MIMAROPA) with 20.8 percent.

Figure 9. Unemployment Rate by Region: January 2017
Source: Philippine Statistics Authority, Labor Force Survey
 
Figure 10. Underemployment Rate by Region: January 2017
Source: Philippine Statistics Authority, Labor Force Survey

Five in seven persons who are not in the labor force are females

In ARMM, among the population 15 years old and over in January 2017, 1.3 million were not in the labor force. Persons not in the labor force are the housewives, students, persons with disability, and retirees. Five out of seven (72.9%) persons who were not in the labor force were females. Among regions, ARMM registered the highest percentage of those who are not in the labor force with the rate of 53.5 percent, while NIR registered the lowest rate at 33.9 percent (See Fig 11).

Figure 11. Not in the Labor Force Participation Rate by Region: January 2017
Source: Philippine Statistics Authority, Labor Force Survey
 
Summary Statistics 
ARMM January 2017
Total 15 Years Old and Over (in ‘000) 2,296
Labor Force (in ‘000) 1,018
Labor Force Participation Rate (%) 46.5
Employment (in ‘000) 974
Employment Rate (%) 95.7
Unemployment (in ‘000) 44
Unemployment Rate (%) 4.3
Underemployment (‘000) 7.3
Underemployment Rate (%) 7.3
Not in the Labor Force 1,278
Not in the Labor Force Participation Rate 53.5

In ARMM,

  • Out of the estimated 2.30 million population 15 years old and over, 1.02 million persons were in the labor force in January 2017. This resulted to a labor force participation rate of 46.5 percent.In ARMM,
  • The employment rate in January 2017 was estimated at 95.7 percent.
  • Fifity-one percent of the employed persons were in the services sector, 44.8 percent were in the agriculture sector and the remaining 4.2 percent were in the industry sector.
  • Workers in agriculture, forestry and fishery constitute the largest proportion of the employed persons as they comprised 35.9 percent of the employed population. Managers and elementary occupation comprised the second and thrid largest occupation groups at 22.6 percent and 18.9 percent, respectively.
  • Majority (or 57.2 percent) of the total employed persons were self-employed, wage and salary workers, made up the second largest proportion at 26.4 percent, 27.2 percent were self-employed, 14.4 percent were employers in own family-operated farm or business, and 2.2 percent were unpaid family workers.
  • The underemployment rate in October 2017 was estimated at 7.3 percent.
  • The unemployment rate in October 2017 was estimated at 4.3 percent.
  • The majority (69.6%) of the unemployed were males.

Technical Notes

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:

a. 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.

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 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.

 

(Sgd) HJI. RAZULDEN A. MANGELEN, MPA, MDM
(Chief Statistical Specialist)
Officer-in-Charge
RSSO-ARMM