Employment rate in the region dropped anew

Reference Number: 

SR-2019-044

Release Date: 

Friday, November 22, 2019

Body: 

The latest employment rate reveals a similar declining pattern during the October 2018 and January 2019 undertaking of the Labor Force Survey (LFS). During these previous periods, employment in the region dropped at an average of 0.2 percentage points. Remarkably,
the latest count showed a modest decline of 1.2 percentage points from its previous record of 97.0 percent recorded in April 2019. 
The latest result, at 95.8 percent, was farther below the employment rate record a year ago at 97.3 percent. 

 

 

 

 

 

 

 

 

 

Although the latest regional employment rate is of the same trend with the national average, the latter was only slashed
with 0.3 percentage point from its previous record while the former, as pointed out earlier, by 1.2 percentage points. With these trends,
the region’s inflation rate is approaching nearer the national average of 94.6 percent, or only about 1.2 percentage points’ gap.

Indubitably, the national average employment rate behave a nearly stable condition for the past year as shown by its limited rise and fall
or almost steady rate at more than 94.0 percent. In fact, the latest national average is the same with the record a year ago 
and across periods, the highest movement whether up and down is limited to only 0.3 percentage points. In contrast, 
the regional employment showed an erratic movement. While in general, the region’s employment rate is moving downward 
with the exception of the record in April 2019, the highest cut so far recorded was between the present and the last count.     

 

Davao region toppled employment rate of the region

The latest estimates showed a remarkable change in the position of Cagayan Valley in terms of employment across regions in the country. After reigning in the top for the past years, employment in the region is now at par with other regions in the middle spot 
with employment rate in Davao region taking the top spot. In 2018, employment in Davao region along with that of SOCCSKSARGEN 
is trailing behind the rate record of the region although employment in the former region was maintained at 96.7 percent.

Meanwhile, employment in the CALABARZON region registered the lowest employment in the latest count. A year ago, 
employment in the CALABARZON area is also at the bottom spot tied with Central Luzon and the Bicol region.  Specifically, 
the latest employment in the CALABARZON region at 92.8 percent was trimmed down by 0.9 percentage points from its 2018 record 
while estimates in Central Luzon and the Bicol region gained more than one percentage points each, both regions up 
in its last year’s position.  Moreover, employment in the National Capital Region, Western and Central Visayas region are also at the bottom
in the latest estimates with the former region’s rate steady at 93.9 percent. The other two regions posted decline from its last year’s count 
with Central Visayas’ employment rate losing one percentage points from its 2018 record of 95.0 percent. Four other regions, 
including Cagayan Valley, showed decrement in its employment ranging from 0.1 percentage points to as high as 1.5 percentage points 
with the highest cut imputed in the Cagayan Valley. On the other hand, employment in the Cordillera Administrative Region at 96.5 percent
took the second spot in the latest count and this is 1.5 percentage points higher than its employment a year ago. Other regions 
with positive indicator includes Ilocos region, MIMAROPA, Eastern Visayas, Zamboanga Peninsula, and Northern Mindanao, 
all of which exhibiting more than ninety five percent in its respective latest employment rate. Surprisingly, Ilocos region
which had the lowest employment rate in July 2018 at 93.5 percent had the highest uptick of 1.6 percentage points thereby elevating
its position at the middle spot in terms of employment across regions.              

 

Labor Force Population almost hit 2.5 million as LPFR decreases

Labor Force Population in the region registered a record high of 2.46 million
in the July 2019 Labor Force Survey (LFS). This is about 1.7 percent higher
than the Labor Force Population recorded in January 2019
and about 2.3 percent higher than the record a year ago. In contrast,
Labor Force Participation Rate (LFPR) shrunk anew at 62.8 percent
from its highest record in a year recorded in April 2019 at 63.3 percent, 
although, the latest count is still 0.4 percent higher than the LPFR count 
a year ago and 0.8 percent higher than the lowest LPFR recorded
in January 2019.     

 

Unemployed persons in the region swelled to 65 thousand

For the past one year, the latest LFS recorded the highest unemployment rate in the region at 4.2 percent. Although in general, 
an increasing trend in the region’s unemployment was noted, the latest count’s accretion was far more larger than any of the increases recorded
during the past four survey periods. In fact, the latest unemployment rate 
of 4.2 percent is 1.6 percentage points higher than the report a year ago 
and 1.2 percentage points higher than the record last quarter. Corollary, 
and with the increase in the Labor Force Population, unemployed persons swelled
to about 65 thousand in July 2019. The latest count is exactly two-thirds higher
than the unemployed person a year ago and more than one-third higher
than the record three months ago. It must be noted further
that an increasing trend of unemployed persons in the region
was observed during the past quarters (July 2018 to April 2019)
but on the average, slight increase was only attained  or about three thousand persons in the labor force joined
the unemployed group quarter after quarter. This will bring around eight thousand persons in the labor force joining the unemployed sector
as of April 2019. Surprisingly, in the latest count, a whooping eighteen thousand persons were added to the list of unemployed 
from the April 2019 count of around forty seven thousand or about thirty eight percent increased for the past three months alone.             

 

Underemployment tick down a bit

The latest unemployment rate and the number of persons in the labor force classified as underemployed declined a bit from its previous record. Underemployment rate
was slashed by almost one percentage points from its record high of 18.6 percent
in April 2019 while underemployed persons was reduced to about 262 thousand
in July 2019. The latest number is about 14 thousand less than the record in April 2019 of underemployed persons. However, both rate and the number of underemployed
were still above the record a year ago and way above the lowest record in January 2019.   

Across the country,
only two regions
which include Cagayan Valley
registered an increase in its underemployment rate compared with the same period last year with the rate in the region ticking up by 1.6 percentage points
while Northern Mindanao by 2.0 percentage points. Notably, the latest underemployment rate in Northern Mindanao at 25.5 percent is the highest
across regions and is tied with the underemployment rate record in Bicol region,
the latter region maintaining its position at the top despite its decrement
of 2.5 percentage points from its July 2018 level of 28.0 percent.     

The rest of the regions displayed a decrement ranging from 0.5 to as high as 12.5 percentage points. Specifically, Western Visayas region which recorded more than twenty percent underemployment rate in July 2018 is now at bottom in terms of underemployment
as it only registered 8.6 percent in July 2019 or about 12.5 percentage points lower than its rate a year ago. In the same footing,
the latest underemployment rate in Zamboanga Peninsula at 15.4 percent placed the region’s rate now at the middle after its very high rate in July 2018 at 25.7 percent or a decrement by 10.3 percentage points, the second largest decrement across regions. Similarly scenario
can be deduced in the case of Caraga’s underemployment rate where its July 2018 rate of 25.2 percent was slashed
by 7.4 percentage points thereby positioning itself in the middle in terms of regional underemployment rate after being in the top
a year ago.     

Meanwhile, the latest underemployment rate in the National Capital Region (NCR) at 6.2 percent remained the lowest rate in the country, the same spot it displayed a year ago with its underemployment rate of 8.0 percent registered in that period.

 

 

MARILYN T. ESTRADA
Regional Director
 
 
//GMB

 

 

Concepts, Definitions and Explanations

 

Employment Status Concepts

Population 15 Years Old and Over

This refers to number of population 15 years old and over excluding overseas workers.  Overseas workers are excluded
in the estimation of the size of working population (population aged 15 years and over) since the data
on their economic characteristics are not collected because they are not considered part of the labor force in the country.

In the Labor Force or Economically Active Population

This refers to persons 15 years old and over who are either employed or unemployed in accordance with the definitions described as follows.

Employed

Employed persons include all those who, during the reference period are 15 years old and over
as of their last birthday and are reported either:

Underemployed

Underemployed persons include all employed persons who express the desire to have additional hours of work
in their present job, or an additional job, or to have a new job with longer working hours. 
Visibly underemployed persons are those who work for less than 40 hours during the reference period
and want additional hours of work.

Unemployed

Unemployed persons include all those who, during the reference period, are 15 years old and over
as of their last birthday and reported as:

a)  Without work, i.e., had no job or business during the reference period; 

b)  Currently available for work, i.e., were available and willing to take up work in paid employment
or self-employment during the reference period, and/or would be available and willing to take up work
in paid employment or self-employment within two weeks after the interview date; and

c)  Seeking work, i.e., had taken specific steps to look for a job or establish a business during the reference period,
or not seeking work due to the following reasons: (1) tired or believed no work available, i.e., discouraged workers;
(2) awaiting results of previous job application; (3) temporary illness or disability; (4) bad weather;
and/or (5) waiting for rehire or job recall.

 

Persons Not in the Labor Force

Persons 15 years old and over who are neither employed nor unemployed according to the definitions mentioned. 
Those not in the labor force are persons who are not looking for work because of reasons such as housekeeping, schooling
and permanent disability.  Examples are housewives, students, disabled, or retired persons.