Unemployment rate reached 27.3% in Central Luzon
In April 2020, 1.2 million of the 4.5 million economically active population aged 15 years old and over were unemployed translating to an unemployment rate of 27.3 percent. This was 22.1 percentage points higher compared with the 5.2 percent rate in April 2019. Furthermore, underemployment rate increased by 3.9 percentage points from 8.5 percent in April 2019 to 12.4 percent in April 2020. (see Table A)
Six regions reported more than 20 percent unemployment rates in April 2020. BARMM (Bangsamoro Autonomous Region in Muslim Mindanao) recorded the highest unemployment rate at 29.8 percent, followed by Central Luzon. CAR (Cordillera Administrative Region) ranked third with 25.3 percent followed by Region IX (Zamboanga Peninsula) at 23.9 percent, Region I (Ilocos Region) at 22.3 percent, Region XII (SOCCSKSARGEN) at 21.2 percent.
On the other hand, Region X (Northern Mindanao) registered the lowest unemployment rate at 11.1 percent, followed by NCR (National Capital Region) and Region XIII (Caraga) both with 12.3 percent. (see Figure 1)
Employment rate was recorded at 72.7 percent
Employment rate or the proportion of employed persons to the total labor force in Central Luzon was recorded at 72.7 percent in April 2020. This brought the number of employed persons at 3.2 million. Seven regions including Central Luzon, had employment rates below the national rate of 82.3 percent, namely: BARMM (70.2%), Central Luzon (72.7%), CAR (74.7%), Zamboanga Peninsula (76.1%), Ilocos Region (77.7%), SOCCSKSARGEN (78.8%), and Davao Region (82.1%). (See figure 2)
51.9 percent of the population aged 15 years old and over are economically active in April 2020
Five in every ten persons aged 15 years old and over are economically active or are in the labor force in April 2020. This also translates that about 4.5 million of the 8.5 million persons in April 2020 are either employed or unemployed. (see Figure 3)
Central Luzon ranked 3rd from among the regions with LFPR lower than the national rate of 55.6 percent. BARMM recorded the lowest rate at 41.1 percent, followed by MIMAROPA (51.4%). On the other hand, Region X (Northern Mindanao) recorded the highest LFPR at 62.8 percent, followed by Ilocos Region at 60.8 percent and Cagayan Valley at 59.6 percent.
Underemployment rate was registered at 12.4 percent
Underemployed persons defined as employed persons who expressed the desire to have additional hours of work in their present job or to have additional job, or have a new job with longer working hours were estimated at 12.4 percent of the total employed persons in the region.
BARMM ranked lowest among the regions with the lowest underemployment rate of 7.8 percent, While Caraga recorded the highest at 32.2 percent. (see Figure 4)
The Labor Force Survey (LFS) is a nationwide quarterly survey of households conducted by the Philippine Statistics Authority (PSA) to gather data on the demographic and socio-economic characteristics of the population.
The reference period for this survey is "past week" or the past seven (7) days preceding the date of visit of the enumerator or field interviewer.
The concepts and definitions used in the survey can be found in PSA-ISH Bulletins. Some are given below:
Labor Force refers to the population 15 years old and over who contribute or seek to contribute to the production of goods and services as defined in the system of National Account production boundary. It comprises the employed and unemployed.
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.
Unemployed refers to persons in the labor force who are reported as:
1) without work;
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).
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.
Labor Force Participation Rate (LFPR) is the proportion of total labor force to the total household population 15 years and over.
Employment Rate is the proportion of employed persons to the total labor force.
Unemployment Rate is the proportion of unemployed persons to the total labor force.
Underemployment Rate is the proportion of underemployed persons to total employed persons.