ARMM Employment Rate in October 2017 is estimated at 96.2 percent (Based on the results of October 2017 Labor Force Survey)

June 22, 2018Special Release Ref No.: 2018-025

The Labor Force Survey (LFS) is a nationwide quarterly survey of households conducted by the Philippine Statistics Authority (PSA) during the months of January, April, July and October. Specifically, it aim to provide statistics on levels and trends of employment, unemployment and underemployment for the country, as a whole, and for each of the administrative regions. For this release, the data being presented are based on the final results of the October 2017 round of the LFS.

Figure 1 shows the results of October 2017 LFS. ARMM’s labor force participation rate (LFPR) or the proportion of total labor force to the total household population 15 years old and over who are either employed or unemployed is placed at 45.6 percent in October 2017, lower by 9.5 percentage point than the figure during the previous year estimated at 55.1 percent (Refer to Figure 1). The population 15 years old and over in October 2017 was estimated at 2.40 million, of which 1.08 million persons were reported to be in the labor force.

Figure 1. Results from October 2017 LFS in ARMM
Source: Philippine Statistics Authority, Labor Force Survey

Among the 17 regions in the country, ARMM recorded the lowest LFPR in October 2017, followed by Region III (Central Luzon), Region IX (Zamboanga Peninsula) and Region I (Ilocos Region) at 58.8 percent, 59.0 percent and 59.7 percent, respectively (See Table 1).

The employment rate or the proportion of total employed persons to the total labor force was estimated at 96.2 percent in ARMM in October 2017, placing the number of employed persons at 1.04 million. The employment rate in ARMM in October 2016 which was estimated at 96.3 percent is slightly higher by just 0.1 percentage point than that of October 2017. Among the 17 regions in the country, ARMM and Region IV-B (MIMAROPA) registered the fifth highest employment rate in October 2017, while Region II (Cagayan Valley) registered the highest employment rate of 97.9 percent.

Table 1. Labor Participation Rates, Employment, Unemployment and Underemployment, by Region: October 2017
Region Labor Force Participation Rate Employment Rate Unemployment Rate Underemployment Rate
NCR 62 93.9 6.1 8.6
CAR 64.2 96.3 3.7 11.7
Region I 59.7 91.8 8.2 20
Region II 65.4 97.9 2.1 14.2
Region III 58.8 94 6 10
Region IVA 65.5 94.3 5.7 15.1
Region IVB 67.8 96.2 3.8 21
Region V 62.5 95.4 4.6 32.8
Region VI 60.4 94.4 5.6 13.7
Region VII 63.7 95.9 4.1 19.6
Region VIII 60.2 96.3 3.7 21.4
Region IX 59 95.7 4.3 9.2
Region X 67.2 95.3 4.7 20.4
Region XI 65.3 96 4 21.2
Region XII 63.8 96.6 3.4 14.6
CARAGA 62.3 96.3 3.7 22.7
ARMM 45.6 96.2 3.8 5.9
Source: Philippine Statistics Authority, Labor Force Survey

The unemployment rate or the proportion of total unemployed persons to the total labor force in ARMM was estimated at 3.8 percent in October 2017 which is higher by 0.1 percentage point than that in October 2016 at 3.7 percent (See Figure 1). Among regions, ARMM and Region IV-B (MIMAROPA) recorded the sixth lowest unemployment rate, Region II (Cagayan Valley) registered the lowest unemployment rate at 2.1 percent and Region I (Ilocos Region) recorded the highest unemployment rate at 8.2 percent in October 2017. 

The underemployment rate or the proportion of total underemployed persons to total employed persons was estimated at 5.9 percent in October 2017, which is lower by 3.4 percentage points than that in October 2016 at 9.3 percent. Among regions, ARMM registered the lowest underemployment rate in October 2017, followed by NCR and Region IX (Zambonaga Peninsula) at 8.6 percent and 9.2 percent, respectively.

Workers in the agriculture sector comprised the largest proportion of the population who are employed. These workers made up 65.9 percent of the total employed persons in October 2017. In October 2016, workers in the agriculture sector accounted for 66.3 percent of the total employed persons, higher by 0.4 percentage points than that in the following year. Workers in the services sector comprised the second largest group making up 29.9 percent of the total employed persons in October 2017, while workers in the industry sector made up the smallest group registering 4.2 percent of the total employed persons.

Figure 2. Percent Distribution of Employed Persons by Major Sectors: ARMM: October 2016 and 2017
Source: Philippine Statistics Authority, Labor Force Survey

Among the occupation groups, workers in the agricultural, forestry and fishery sector remained the largest group making up 51.4 percent of the total employed persons in October 2017. In October 2016, such workers made up 42.4 percent of the total employed persons in that period. In October 2017, elementary occupations comprised the second largest occupation group making up 16.4 percent, followed by managers (14.3%), and plants and machine operators and assemblers (5.0%).

Employed persons fall into any of the four categories: (1) wage and salary workers, (2) self-employed workers without paid employee, (3) employers in own family-operated farm or business, and (4) unpaid family workers. Self-employed persons made up 61.8 percent of the total employed persons in October 2017 and 59.9 percent in October 2016. The second largest class of workers were the wage and salary workers making up 20.2 percent of the total employed persons in October 2017 while it was 18.2 percent in October 2016. Unpaid family workers accounted for 11.7 percent of the total employed in October 2017 and 21.3 percent of the total employed in October 2016. 

Figure 3. Percent Distribution of Employed Persons by Occupation Groups, ARMM: October 2016 and 2017
Source: Philippine Statistics Authority, Labor Force Survey
 
Figure 4. Percent Distribution of Employed Persons by Class of Workers, ARMM: October 2016 and 2017
Source: Philippine Statistics Authority, Labor Force Survey

Technical notes:

Starting April 2005, the new unemployment definition was adopted per NSCB Resolution Number 15 dated October 20, 2004.  As indicated in the said resolution, the unemployed include all persons who are 15 years and over as of their last birthday and are reported as: (1) without work and currently available for work and seeking work; or (2) without work and currently available for work but not seeking work for the following reasons:

1. Tired/believed no work available

2. Awaiting results of previous job application

3. Temporary illness/disability

4. Bad weather

5. Waiting for rehire/job recall

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.

Question on vocational course was 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) has been adopted to generate the labor force statistics.

In January 2017 round, Computer Aided Personal Interviewing (CAPI) using Tablet was utilized in the LFS enumeration.  Starting April 2017 round, Computer Aided Data Collection System (CADaCS) has been used 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