Unemployment rate reached 8.5% in Central Luzon
In January 2021, 432 thousand of the 5 million economically active population aged 15 years old and over were unemployed translating to an unemployment rate of 8.5 percent. This was 1.1 percentage point lower compared with 9.6 percent unemployment rate in October 2020. (see Table A).
Central Luzon (Region III) ranked eighth among regions with the highest unemployment rate in January 2021 with 8.5 percent, a 0.2 percentage point lower than the national average of 8.7 percent. CALABARZON (Region IV-A) recorded the highest unemployment rate at 13.1 percent. Bicol Region (Region V) ranked second with 11.3 percent, followed by MIMAROPA and Ilocos Region (Region I) both with 9.3 percent.
On the other hand, Zamboanga Peninsula (Region IX) registered the lowest unemployment rate at 3.6 percent. This was followed by Davao Region (Region XI) at 5.4 percent and Cagayan Valley (Region II) at 6.0 percent. (see Figure 1)
Employment rate was recorded at 91.5 percent
Employment rate or the proportion of employed persons to the total labor force in Central Luzon was recorded at 91.5 percent in January 2021. This brought the number of employed persons at 4.6 million. Ten regions including Central Luzon, had employment rates above the national rate of 91.3 percent, namely Zamboanga Peninsula (Region IX) at 96.4 percent, Davao Region (Region XI) with94.6 percent, Cagayan Valley (Region II) 94.0 percent, Cordillera Administrative Region (CAR) 93.7 percent, SOCCSKSARGEN (Region XII) 93.2 percent, Northern Mindanao (Region X) and Central Visayas (Region VII) with 92.9 percent, Eastern Visayas (Region VIII) and Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) with 92.4 percent. (see Figure 2)
Six in every ten persons aged 15 years old and over are economically active in January 2021
Six in every ten persons aged 15 years old and over are economically active or are in the labor force in January 2021. This means that 5 million of the 8.7 million persons in January 2021 were either employed or unemployed. (see Figure 3)
Central Luzon ranked fourth with 58.4 percentamong the regions with LFPR lower than the national rate of 60.5 percent. Davao Region (Region XI) recorded the lowest rate at 56.2 percent. On the other hand, Zamboanga Peninsula (Region IX) recorded the highest LFPR at 66.7 percent.
Underemployment rate was registered at 8.7 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 8.7 percent of the total employed persons in the region.
Central Luzon (Region III) ranked second among the regions with the lowest underemployment rate. National Capital Region (NCR) recorded the lowest with 8.2 percent, while Zamboanga Peninsula (Region IX) recorded the highest at 26.7 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.