The Labor Force Survey (LFS) is one of the nationwide household surveys undertaken quarterly which provides up-to-date information on the Philippine labor force and its characteristics. This survey gathers data on the demographic and socio- economic characteristics of the population and aims to provide a quantitative framework for the preparation of plans and formulation of policies affecting the labor market.

From the result of the January 2020 Labor Force Survey (LFS), Central Visayas has 5,380,000 total population of 15 years old and over wherein 63.9 percent were engaged in the Labor Force also known as the Labor Force Participation Rate (Table 1).

Labor Force Participation Rate is the percentage of the total number of persons in the labor force to the population of 15 years old and over.

The national employment rate in January 2020 was estimated at 94.7 percent. Among regions Central Visayas had an employment rate of 96.5 percent which is higher compared with the national estimate (Table 2).

The labor force population consists of the employed and the unemployed persons 15 years old and over.

In January 2020, workers were grouped into three broad sectors, namely, agriculture, industry and services sector. Workers in the services sector comprised the largest proportion of the population who are employed. It was followed by the agriculture sector and those in the industry sector are the smallest group.

Employed persons are classified as either full-time workers or part-time workers. Full-time workers refer to those who worked for 40 hours or more during the reference week, while those who worked for less than 40 hours were considered part-time workers. The reference week or reference period refers to the past seven days (moving) from the date of interview and those who are aged 15 years old and over as of their last birthday and are to be included.

Employed persons fall into any of these categories: (1) wage and salary workers, (2) self-employed workers without any paid employee, (3) employers in own family-operated farm or business, and (4) unpaid family workers.  Wage and salary workers are those who work for private households, private establishments, government or government-controlled corporations, and those who work with pay in own family-operated farm or business.

By definition, employed persons who express desire to have additional hours of work in their present job, or to have additional job, or to have a new job with longer working hours are considered underemployed.  

In January 2020, the underemployment rate was estimated at 14.7 percent for Central Visayas (Table 3). 

Bicol Region, Caraga, SOCCSKSARGEN, MIMAROPA, Northern Mindanao, Zamboanga Peninsula, Eastern Visayas, Cagayan Valley and Ilocos Region had higher underemployment rates compared to Central Visayas.

Underemployed persons who work for less than 40 hours in a week are called visibly underemployed persons.

Meanwhile unemployed persons include all those who, during the reference period, are 15 years old and over as of their last birthday who have no job/business, currently available for work and actively looking for work.  

Also considered as unemployed are persons without a job or business who are reported not looking for work because of their belief that no work was available or because of temporary illness/disability, bad weather, pending job application or waiting for job interview.

The national unemployment rate in January 2020 was estimated at 5.3 percent. Central Visayas had a lower unemployment rate than the national estimate at 3.5 percent.

The January 2020 Employment, Unemployment, and Underemployment Rates were taken from the preliminary result of the January 2020 Labor Force Survey (LFS) conducted by the Philippine Statistics Authority (Table 5).

TECHNICAL NOTES

• Starting April 2005, the new unemployment definition was adopted as 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 and generate the labor statistics.

• In July 2016, the 2008 Philippine Standard Classification of Education (PSCED) that was used in the 2015 Population Census (2015 POPCEN) had been adopted. The categories for highest grade completed were also revised considering the K to 12 program in the education system.

• In 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.

Approved by:

(SGD.) ARIEL E. FLORENDO
Regional Director