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 July 2020 Labor Force Survey (LFS), Central Visayas has 5,482,000 total population of 15 years old and over wherein 57.8 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 July 2020 was estimated at 90.0 percent. Among regions, Central Visayas had an employment rate of 88.3 percent which is lower 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 July 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.

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 July 2020 was estimated at 10.0 percent. Central Visayas had a higher unemployment rate than the national estimate at 11.7 percent (Table 3).

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 July 2020, the underemployment rate was estimated at 17.0 percent for Central Visayas. MIMAROPA, Northern Mindanao, Bicol Region, SOCCSKARGEN, CALABARZON, Cagayan Valley, Eastern Visayas, CAR, and Caraga had higher underemployment rates compared to Central Visayas (Table 4).

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

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

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 looking for work; or (2) without work and currently available for work but not looking for work due to 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 April 2012 LFS, the codes for industry adopted the 2009 Philippine Standard Industrial Classification (PSIC).  Prior to this, codes for industry used the 1994 PSIC.  Further, question on vocational course was also introduced in the April 2012 LFS questionnaire. In addition, the 2012 Philippine Standard Occupational Classification (PSOC) was adopted starting April 2016.  The 1992 PSOC had been used prior to this round.
• In April 2017 round, Computer Aided Personal Interviewing (CAPI) using Tablet was utilized in the LFS enumeration.
• In January 2019, the 2017 Philippine Standard Classification of Education (PSCED) has been adopted. The categories for highest grade completed were also revised considering the K to 12 program in the education system.
• Starting January 2020 LFS round, the population projections based on the 2015 Population Census (POPCEN 2015) has been adopted to generate the labor force statistics. For comparability, population projections based on the POPCEN 2015 was likewise used in the July 2019 labor force statistics.
• In April and July 2020 LFS round, ECQ/Lockdown/COVID-19 Pandemic was included in the reasons for working more than 48 hours, less than 40 hours, and not looking for work.  For the first time, a hybrid approach was used in data collection, a mixed mode of CAPI face-to-face interview, whenever possible, or a telephone interview.
• 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.
• The July 2020 LFS was conducted from 08 to 31 July 2020. The provision of minimum health protocols like masks, face shield, and alcohol were provided to all PSA officials and statistical researchers who did the survey.

Approved by:

(SGD.) ARIEL E. FLORENDO
Regional Director