labor market profileissue no. 1, series of 2019 march 2019

6
Department of Labor and Employment BUREAU OF LOCAL EMPLOYMENT 6F First Intramuros BF Condominium, Solana St. cor. A. Soriano Ave., Intramuros, Manila | (02) 528-0087 | ble.dole.gov.ph Labor Market Profile Issue No. 1, Series of 2019 March 2019 The Philippine Labor Market 2 0 1 8 e country’s fourth quarter 2018 Gross Domestic Product (GDP) slightly declined to 6.1% from 6.5% in 2017, resulting in the 6.2 percent full-year growth for 2018. e eco- nomic growth can be mainly at- tributed to the following sectors: Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods; and Other Services. Unemployment rate decreased by 0.4 percentage points (-140,000) from 5.7% in 2017 to 5.3% in 2018, which is within the target of the Philippine Development Plan (PDP) set at 4.7%-5.3%. Moreover, the youth unemployment continues to improve as it decrease by 1.0 per- centage point year-on-year (from 13.4% in 2017 to 14.4% in 2018). Underemployment rate, on the other hand, slightly increased to 16.4% compared to 16.1% recorded in 2017. e Philippine Statistics Authority (PSA) reported that the country’s fourth quarter GDP slowed down to 6.1% compared to 6.5% recorded over the same period last year. In a PSA statement issued on 24 January 2019, e main drivers of growth for the quarter were Construction; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods; and Other Services. Among the major economic sec- tors, Industry had the fastest growth with 6.9%, followed by Services (6.3%), and Agriculture (1.7%). In terms of employment figures, the highest growth rate recorded in 2018 among the subsectors of the Industry sector came from Electricity, Gas, Steam and Air-conditioning Supply with 10% growth rate (+8,000) and Construction, which is up by 9.3% THE PHILIPPINE ECONOMY (+328,000) from 3.537 million to 3.865 million workers (see Table 1). As to the subsectors of the Services sector, the highest growth rate is at 100% (+2,000) from the Activities of extraterritorial organizations and bodies sector, followed by the Arts, Entertainment and Recreation with 11.7% growth rate (+38,000), and Professional, scientific and techni- cal activities sector at 10.9% (+27,000).

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Department of Labor and EmploymentBUREAU OF LOCAL EMPLOYMENT

6F First Intramuros BF Condominium, Solana St. cor. A. Soriano Ave.,Intramuros, Manila | (02) 528-0087 | ble.dole.gov.ph

Labor Market Profile Issue No. 1, Series of 2019March 2019

The Philippine Labor Market2 0 1 8

�e country’s fourth quarter 2018 Gross Domestic Product (GDP) slightly declined to 6.1% from 6.5% in 2017, resulting in the 6.2 percent full-year growth for 2018. �e eco-nomic growth can be mainly at-tributed to the following sectors: Trade and Repair of Motor Vehicles, Motorcycles, Personal and

Household Goods; and Other Services.Unemployment rate decreased by 0.4 percentage points (-140,000) from 5.7% in 2017 to 5.3% in 2018, which is within the target of the Philippine Development Plan (PDP) set at 4.7%-5.3%. Moreover,

the youth unemployment continues to improve as it decrease by 1.0 per-centage point year-on-year (from 13.4% in 2017 to 14.4% in 2018). Underemployment rate, on the other hand, slightly increased to 16.4% compared to 16.1% recorded in 2017.

�e Philippine Statistics Authority (PSA) reported that the country’s fourth quarter GDP slowed down to 6.1% compared to 6.5% recorded over the same period last year.In a PSA statement issued on 24 January 2019, �e main drivers of growth for the quarter were Construction; Trade and Repair of Motor Vehicles, Motorcycles, Personal and Household Goods; and Other Services.

Among the major economic sec-tors, Industry had the fastest growth with 6.9%, followed by Services (6.3%), and Agriculture (1.7%).In terms of employment �gures, the highest growth rate recorded in 2018 among the subsectors of the Industry sector came from Electricity, Gas, Steam and Air-conditioning Supply with 10% growth rate (+8,000) and Construction, which is up by 9.3%

THE PHILIPPINE ECONOMY(+328,000) from 3.537 million to 3.865 million workers (see Table 1). As to the subsectors of the Services sector, the highest growth rate is at 100% (+2,000) from the Activities of extraterritorial organizations and bodies sector, followed by the Arts, Entertainment and Recreation with 11.7% growth rate (+38,000), and Professional, scienti�c and techni-cal activities sector at 10.9% (+27,000).

ALL INDUSTRIES

Agriculture

Agriculture, Hunting and Forestry

Fishing and Aquaculture

Industry

Mining and Quarrying

Manufacturing

Electricity, Gas, Steam and Air Conditioning Supply

Water Supply; Sewerage, Waste Management and

Remediation Activities

Construction

Services

Wholesale and Retail Trade; Repair of Motor

Vehicles and Motorcycles

Transportation and Storage

Accommodation and Food Service Activities

Information and Communication

Financial and Insurance Activities

Real Estate Activities

Professional, Scientific and Technical Activities

Administrative and Support Service Activities

Public Administration and Defense; Compulsory

Social Security

Education

Human Health and Social Work Activities

Arts, Entertainment and Recreation

Other Service Activities

Activities of Households as Employers;

Undifferentiated Goods and Service-producing

Activities of Households for Own Use

Activities of Extraterritorial Organizations and

Bodies

MAJOR INDUSTRY GROUPS

40,334

10,261

9,066

1,194

7,370

203

3,481

80

69

3,537

22,703

7,900

3,127

1,740

397

506

186

247

1,475

2,408

1,204

484

325

2,701

-

2

2017

41,160

10,001

8,875

1,127

7,845

206

3,626

88

61

3,865

23,313

7,993

3,221

1,729

404

541

204

274

1,585

2,560

1,195

517

363

2,724

-

4

2018

826

-260

-191

-67

475

3

145

8

-8

328

610

93

94

-11

7

35

18

27

110

152

-9

33

38

23

-

2

INCREMENT(2017 vs 2018)

2.0%

-2.5%

-2.1%

-5.6%

6.4%

1.5%

4.2%

10.0%

-11.6%

9.3%

2.7%

1.2%

3.0%

-0.6%

1.8%

6.9%

9.7%

10.9%

7.5%

6.3%

-0.7%

6.8%

11.7%

0.9%

-

100.0%

GROWTH RATE

Table 1. Employed Persons by Major Industry Group, Philippines: 2017 vs 2018(In thousands except rates)

Source: Labor Force Survey, PSANotes: 1 Details may not add up due to rounding 2 Industry Classi�cation is based on the 2009 Philippine Standard Industry Classi�cation (PSIC) 3 Starting April 2016 round, the LFS adopted the 2013 Master Sample Design as well as the population projections based on the 2010 Census of Population and Housing (2010 CPH) while previous survey rounds were derivedn using the 2000 CPH population projections 4 January 2016 data re�ected were based on the 2010 CPH population projections to compute for the annualized data for 2016

In 2018, the Philippine labor market is in a steady state managing to keep the unemployment rate at 5.3%, which signi�cantly decreased from the 5.7% recorded over the same period last year, and is still within the target of the Philippine Devel-

opment Plan set at 4.7%-5.3%.

�e 2018 Labor Force Survey annual estimates shows that the country’s total labor force improved to 43.461 million from 42.775 million over the same period (see

LABOR AND EMPLOYMENT SITUATIONTable 2). However, a decrease in the labor force participation rate from 61.2% in 2017 to 60.9% in 2018 was observed. �is may be attributed to the lower labor force of youth and women.

PAGE 2

Decent gains were also observed. Unemployment rate decreased by 0.4 percentage points (-140,000) from 5.7% in 2017 to 5.3% in 2018. Moreover, the youth unemploy-ment continues to improve as it decreased by 1.0 percentage point year-on-year (from 13.4% in 2017 to 14.4% in 2018). On the other hand, underemployment rate slightly increased to 16.4% com-pared to 16.1% underemployment rate recorded in the previous year.

Labor Supply and Demand Situation

Demand. Labor demand in this

report focuses on company vacan-cies with the number of available skills for hire, thus, the interplay of employer demand and supply of manpower must be examined.

A total of 65,384 job vacancies were posted on the PhilJobNet (PJN) in 2018 (see Fig. 1). Most of the vacan-cies are Clerks (23% or 15,253), Professionals (19% or 12,266), Shop and Market Sales Workers (15% 10,029), and Laborers and Unskilled Workers (13% or 8,606). It can be noted that local vacancies (91.5%) were dominant compared to overseas (8.5%).

In terms of industry, majority of the job vacancies are under the Real Estate, Renting, and Business Activ-ities (60% or 39,427). �e following industries also cover a signi�cant share of job vacancy postings: (1) Wholesale and Retail Trade, Repair of Motor Vehicles, Motorcycles and Personal and Household Goods with 10% share or 6,382; (2) Trans-port, Storage, and Communications (8% or 4,944); and (3) Financial Intermediation (5% or 3,213).

Two major job fairs were conducted by the Department of Labor and Employment (DOLE) in the �rst quarter of 2018 namely, the Labor

Day and Independence Day Traba-ho, Negosyo, Kabuhayan (TNK) Job and Business Fairs. Out of the 38, 981 registered applicants, 4,702 or 12% were hired on the spot during the Labor Day Job Fair. On the other hand, the Independence Day Job Fair recorded a total of 19,433 registered applicants with 2,197 (11%) hired on the spot applicants.

As of October 2018 Public Employ-ment Service O�ce (PESO) data, there were 1,956,938 quali�ed applicants for placement. Out of which, 1,694,223 (86%) quali�ed applicants were placed during said period.

0 4000 8000 12000 16000

PROFESSIONALS

TECHNICIANS AND ASSOCIATEPROFESSIONALS

CLERKS

SHOP AND MARKET SALESWORKERS

FORESTRY WORKERS ANDFISHERMEN

TRADERS AND RELATEDWORKERS

MACHINE OPERATORS ANDASSEMBLERS

LABORERS AND UNSKILLEDWORKERS

GOVERNMENT AND SPECIALINTEREST ORGANIZATIONS

SPECIAL OCCUPATIONS

12,266

4,969

15,253

10,029

91

6,474

4,053

8,606

3,508

135

Figure 1. PhilJobNet Job Vacancy Postings: Percentage Distribution by OccupationJanuary to December 2018

Source: PhilJobNet

HOUSEHOLD POPULATION

(15 YEARS OLD AND OVER)

LABOR FORCE (‘000)

EMPLOYED PERSONS (‘000)

UNEMPLOYED PERSONS (‘000)

UNDEREMPLOYED PERSONS (‘000)

LABOR FORCE PARTICIPATION RATE (%)

EMPLOYMENT RATE (%)

UNEMPLOYMENT RATE (%)

UNDEREMPLOYMENT RATE (%)

YOUTH UNEMPLOYMENT RATE (%)

INDICATOR

60,717

38,893

36,035

2,859

6,762

64.1

92.6

7.4

18.8

17.6

61,882

40,006

37,192

2,814

7,163

64.6

93.0

7.0

19.3

16.3

2011 2012

62,985

40,426

37,600

2,826

7,514

64.2

92.9

7.1

20.0

16.2

61,176

39,088

36,286

2,801

6,912

63.9

92.9

7.1

19.3

16.2

2014

64,033

41,379

38,651

2,728

7,118

64.6

93.4

6.6

18.4

16.1

64,936

41,343

38,741

2,602

7,180

63.7

93.7

6.3

18.5

15.3

2016

68,311

43,361

40,998

2,363

7,513

63.5

94.5

5.5

18.3

13.5

2017

69,891

42,775

40,334

2,441

6,506

61.2

94.3

5.7

16.1

14.4

2018p

71,339

43,461

41,160

2,301

6,506

60.9

94.7

5.3

16.4

13.4

Table 2. Key Employment Indicators, Philippines: 2010-2018(in thousands)

Source: Labor Force Survey, PSA

2010 2013 2015

PAGE 3

2013

Supply. Labor supply in this report focuses on graduates in formal education and training institutions, registered professions and skills in the barangay level.

Per enrolment data from the Com-mission on Higher Education (CHED), Business Administration and Related Disciplines had the highest number of enrollees both in 2017 and 2018 followed by Educa-tion and Teacher Training, Engi-neering and Technology, and Infor-mation Technology (see Table 3).

Relatively few enrollees were, how-ever, observed in Home Economics, and Trade, Cra� and Industrial Disciplines. A range of 11%-25% dropout rate was observed. Fine and Applied Arts held the highest rate of dropout.

Highest number of graduates for A.Y. 2017 can be found in Business Administration and Related disci-plines (202,895) followed by Educa-tion and Teacher Training (138,496) and Engineering and Technology (82,794). �e lowest number of graduates was also observed in the �elds with few enrollees.

A total of 1,139,714 new registrants were recorded in the Skills Registry System (SRS) for 2018 (see Fig. 3). Most of the registered applicants in SRS came from the 20-24 (35% or 393,750) age bracket, followed by applicants aging from 25-34 (28% or 318,565) and applicants within the 15-19 (17% or 190,753) bracket.

�e number of female (55% or 622,469) applicants were relatively higher than the number of male (45% or 517,245) applicants for 2018.

For 2018, O�ce Clerk topped the list of preferred occupation of the registered applicants on the SRS, tallying 71,430 or 6% of the total (see Fig. 4). Service Crew (52,502)

2010

0 10000 20000 30000 40000

AGRICULTURE, HUNTING, AND FORESTRY

CONSTRUCTION

ELECTRICITY, GAS, AND WATER

FISHING

MINING AND QUARRYING

MANUFACTURING

EDUCATION

2,875

-

2,012

1,036

EXTRA-TERRITORIAL ORGANIZATIONS AND BODIES

FINANCIAL INTERMEDIATION

HEALTH AND SOCIAL WORK

HOTELS AND RESTAURANTS

OTHER COMMUNITY, SOCIAL, AND PERSONALSERVICE ACTIVITIES

PRIVATE HOUSEHOLDS WITH EMPLOYED PERSONS

PUBLIC ADMINISTRATION AND DEFENSE,COMPULSORY SOCIAL SECURITY

REAL ESTATE, RENTING, AND BUSINESS ACTIVITIES

TRANSPORT, STORAGE, AND COMMUNICATIONS

WHOLESALE AND RETAIL TRADE, REPAIR OFMOTOR VEHICLES, MOTORCYCLES AND PERSONAL

AND HOUSEHOLD GOODS

48

48

38

53

3,213

1,325

1,762

2,156

-

65

39,427

4,944

6,382

Figure 2. PhilJobNet Job Vacancy Postings: Percentage Distribution by IndustryJanuary to December 2018

Source: PhilJobNet

Table 3. Higher Education Institution Enrolment and Graduates:Total Number by Academic Discipline Group

Source: CHED Administrative Data | 2017 enrollment data as of 10 April 2017 / 2017 & 2018 graduate data as of 08 June 2018

AGRI., FORESTRY, FISHERIES, VET MED

ARCHITECTURAL & TOWN PLANNING

BUSINESS ADMINISTRATION

EDUCATION AND TEACHER TRAINING

ENGINEERING AND TECHNOLOGY

FINE AND APPLIED ARTS

GENERAL

HOME ECONOMICS

HUMANITIES

INFORMATION TECHNOLOGY

LAW AND JURISPRUDENCE

MARITIME

MASS COMM. & DOCUMENTATION

MATHEMATICS

MEDICAL AND ALLIED

NATURAL SCIENCE

OTHER DISCIPLINES

RELIGION AND THEOLOGY

SERVICE TRADES

SOCIAL & BEHAVIORAL SCIENCE

TRADE, CRAFT AND INDUSTRIAL

DISCIPLINE GROUP

127,287

40,238

921,324

740,713

448,550

16,324

7,614

5,960

40,753

398,765

23,239

119,387

36,527

14,109

203,561

34,923

212,709

8,351

73,905

114,834

411

3,589,484

ENROLLEES(2016-2017)

24,210

4,828

202,895

138,496

82,794

4,100

1,468

1,236

6,877

73,646

2,613

21,561

8,230

3,034

43,012

7,160

37,799

1,746

15,205

22,324

93

703,327

GRADUATES(2016-2017)

19.02

12.00

22.02

18.70

18.46

25.12

19.28

20.74

16.87

18.47

11.24

18.06

22.53

21.50

21.13

20.50

17.77

20.91

20.57

19.44

22.63

--

DROP OUT RATE (%)

100,922

33,439

775,805

639,063

370,710

16,355

4,869

4,876

36,332

315,694

23,422

82,205

29,114

11,814

176,532

29,307

171,399

7,628

55,671

96,428

218

2,981,803

ENROLLEES(2017-2018)

PAGE 4

For 2017, Technical Education and Skills Development Authority (TESDA) has issued certi�cation to a total of 1,308,277 skilled workers out of the 1,407,897 assessed appli-cants for the year (see Table 5). �e National Capital Region (NCR) has the highest number of certi�ed skilled workers at 407,635 (31%) followed by Region IV-A with 172,480 (13%) and Region III with 110,990 (8%).

was also one of the most preferred occupations followed by Saleslady (49,624) and Call Center Agent (43,512).

For 2016, a total of 202,212 profes-sionals were issued new licenses from the Professional Regulation Commission (PRC). �e top three (3) professions with new registrants are: (1) Professional Teacher at 47%, (2) Nurse at 8%; and (3) Criminolo-gist at 7% (see Table 4).

0

50000

100000

150000

200000

250000

MALEFEMALE

65 AND ABOVE55-6445-5435-4425-2320-2415-19

Figure 3. SRS Registered Applicants: Total Number by Sex and Age Group,Philippines: 2018

0

10000

20000

30000

40000

50000

60000

70000

80000

Assessm

ent Clerk

Welder

Bagger

Accountin

g Clerk

Administrative

Clerk

Merchandise

r

Domestic H

elper

Housekeeper

Salesman

Seaman

Utility W

orker

Data Encoder

Sales Clerk

Laborer

Cashier

Production W

orker

Call Center A

gent

Saleslady

Service Crew

Office Clerk

Figure 4. SRS Registered Applicants: Top 20 Preferred Positions,Philippines: 2018

Table 4. Newly-Registered Professionalsby Profession, Philippines: 2016

Source: PRC Administrative Data, 2016

PROFESSIONAERONAUTICAL ENGINEERAGRICULTURAL ENGINEERAGRICULTURISTARCHITECTCERTIFIED PUBLIC ACCOUNTANTCHEMICAL ENGINEERCHEMISTCHEMICAL TECHNICIANCIVIL ENGINEERCRIMINOLOGISTCUSTOMS BROKERDENTISTDENTAL HYGIENISTDENTAL TECHNOLOGISTREGISTERED ELECTRICAL ENGINEERREGISTERED MASTER ELECTRICIANPROFESSIONAL ELECTRICAL ENGINEERASSISTANT ELECTRICAL ENGINEERASSOCIATE ELECTRICAL ENGINEERMASTER ELECTRICIANELECTRONICS ENGINEERPROF. ELECTRONICS COMM. ENGINEERELECTRONICS TECHNICIANENVIRONMENTAL PLANNERFISHERIESFORESTERGEODETIC ENGINEERJUNIOR GEODETIC ENGINEERGEODETIC ENGINEER AIDEGEOLOGISTGEOLOGIC AIDEGUIDANCE COUNSELORINTERIOR DESIGNERLANDSCAPE ARCHITECTLIBRARIANMASTER PLUMBERMECHANICAL ENGINEERPROF. MECHANICAL ENGINEERMECHANICAL PLANT ENGINEERCERTIFIED PLANT MECHANICAIR CONDITION &. REF SPECIALISTMEDICAL TECHNOLOGISTMEDICAL LABORATORY TECHNOLOGISTMETALLURGICAL ENGINEERMETALLURGICAL PLANT FOREMANMIDWIFEMINING ENGINEERCERTIFIED MINE FOREMANCERTIFIED MILL FOREMANCERTIFIED QUARRY FOREMANNAVAL ARCHITECTNURSENUTRITIONIST-DIETITIANDIETITIANOPTOMETRISTOCULAR PHARMACOLOGISTPHARMACISTCHINESE DRUGGISTPHYSICIANPHYSICAL THERAPISTOCCUPATIONAL THERAPISTPHYSICAL THERAPIST TECHNICIANOCCUPATIONAL THERAPIST TECHNICIANPROFESSIONAL TEACHERSPSYCHOLOGISTPSYCHOMETRICIANRADIOLOGIC TECHNOLOGISTX-RAY TECHNOLOGISTREAL ESTATE APPRAISERREAL ESTATE BROKERREAL ESTATE CONSULTANTRESPIRATORY THERAPISTSANITARY ENGINEERSOCIAL WORKERSUGAR TECHNOLOGISTVETERINARIANGRAND TOTAL

NO.167404

1,8222,4768,254820637128

7,31214,171

993785

034

3,7373,797

59000

2,76286

2,944536393545231

00

2810

23921050

6971,3044,024201

0700

6,00696710

2,727208

0001

16,208222

01

103,065

03,3701,348172

00

94,483116

3,7971,638

671,3575,271

44643115684

0323

202,212

1234567

89

1011

12

13

14151617

18

192021222324

25

26

2728

293031

32

33

3435

3637

38

39

4041424344

PAGE 5

407,635

33,881

79,032

32,530

110,990

172,480

50,649

58,567

59,464

71,011

45,400

34,941

33,576

54,024

41,318

18,950

3,829

1,308,277

NCR

CAR

REGION I

REGION II

REGION III

REGION IV-A

REGION IV-B

REGION V

REGION VI

REGION VII

REGION VIII

REGION IX

REGION X

REGION XI

REGION XII

CARAGA

ARMM

TOTAL

REGION

416,121

37,392

85,741

35,243

120,631

189,307

54,129

70,646

65,340

75,755

51,335

38,710

36,410

57,906

46,178

22,551

4,502

1,407,897

ASSESSED

CERTIFICATION RATE: 93%

CERTIFIED

Table 5. Number of Assessed and Certi�ed SkilledWorkers by Region: 2017

Source: TESDA Administrative Data, 2017 Executive Report

Department of Labor and EmploymentBUREAU OF LOCAL EMPLOYMENT

Labor Market Information, Research, and Career Guidance Advocacy Division

6F First Intramuros BF CondominiumSolana Street corner Andres Soriano Avenue

Intramuros, Manila, Philippines

email: [email protected]: ble.dole.gov.ph

telephone: 527-2539fax: 527-2421

Labor Market Profile Issue No. 1, Series of 2019

�e LABOR MARKET PROFILE, or LMP, is an annual publication of the Department of Labor and Employment - Bureau of Local Employment presenting the overall scenario of the Philippine labor market using primary and secondary sources of labor market infromation, or LMI, from national surveys and administrative data.

EDITORIAL BOARDDir. Dominique Rubia-Tutay

Gerardo AbordoMyka Rose Trono

TEXT & LAYOUTLor Alfonso

Grace BaldozaJill Borjal

Precious Nicole BugayongStephanie Jaurigue

John Christopher LapizMyka Rose Trono