Release Date :
Reference Number :
2022-32
The Labor Force Survey (LFS) is a nationwide survey of households conducted quarterly by the Philippine Statistics Authority (PSA). This special release aims to present trends in labor and employment in the province of La Union based on the results of the quarterly LFS from 2018 to 2021.
La Union’s labor force participation rate highest in 2021
From 2018 to 2021, the average annual Labor Force Participation Rate (LFPR) in La Union was 64.20 percent. The lowest LFPR in the province was recorded in 2020 at 62.70 percent, accounting to about 362.60 thousand individuals. On the contrary, the highest LFPR was recorded in 2021 at 65.00 percent. This means that out of the 586.68 thousand working-age population in La Union in 2021, 381.34 thousand people are in the labor force.
A downward trend was observed in the province’s LFPR in 2018, 2019, and 2020 at 64.90 percent, 64.20 percent, and 62.70 percent, respectively. Meanwhile, the LFPR in the province rose to 65.00 percent in 2021. (Figure 1)
Employment rate in La Union improves at 89.20 percent in 2021
In 2018, the employment rate of the province was registered at 93.60 percent. It increased to 96.10 percent in 2019. However, the employment rate dropped to 85.70 percent in 2020. The marked decline can be attributed to the onset of the pandemic caused by Coronavirus Disease 2019 (COVID-19). In 2021, La Union’s employment rate improved to 89.20 percent. This means that from 2020 to 2021, the number of employed persons in the province grew by 9.50 percent, accounting to about 29.51 thousand new jobs generated. (See Figure 2)
La Union’s unemployment rate decreases to 10.8 percent in 2021
An improvement in the unemployment rate was observed in 2021 at 10.80 percent from 14.30 percent in 2020. This translates to a decrease in the total unemployed population from 51.82 thousand individuals to 41.06 thousand individuals.
Meanwhile, Figure 3 shows a mixed trend in the unemployment rate in La Union from 2018 to 2021. The highest unemployment rate was recorded in 2020 at 14.30 percent, while the lowest was in 2019 at 3.90 percent. The 10.40 percentage-point increase in the unemployment rate from 2019 to 2020 translates to some 37.53 thousand jobs lost. This agrees with the trend of the employment rate in the same period.
La Union’s underemployment rate declines in 2021
By definition, employed persons who: (1) express the desire to have additional hours of work in their present job; or (2) to have an additional job; or (3) to have a new job with longer working hours are considered underemployed.
As shown in Figure 4, La Union’s underemployment rates in 2018, 2019, 2020, and 2021 were registered at 30.90 percent, 23.90 percent, 25.80 percent, and 14.10 percent, respectively.
During the period 2018 to 2021, the province’s underemployment rate declined from 30.90 percent in 2018 to 14.10 percent in 2021, the lowest in four years. This is equivalent to about 56.80 thousand underemployed workers from 104.91 thousand in 2018 to 48.11 thousand in 2021. This is a positive development as it implies an improvement in the quality of jobs.
STATISTICAL TABLES
TECHNICAL NOTES
LABOR FORCE SURVEY
I. Introduction
a. Background
The stability and growth of a country’s economy hinges on its ability to produce goods and services for both domestic and international use. Labor represents an important factor of production; hence, the improvement of the quality of the labor force, and efforts to make it more productive and responsive to growth are necessary for the development of the economy. A clear knowledge and understanding of the size, composition, and other characteristics of the segment of the population is a big step in this direction. A continuing supply of the data on labor force is indispensable to national and local development planning.
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.
b. Objectives
The LFS aims to provide a quantitative framework for the preparation of plans, and formulation of policies affecting the labor market.
Specifically, the survey is designed to provide statistics on levels and trends of employment, unemployment, and underemployment for the country, as a whole, and for each of the administrative regions.
c. Scope and Coverage
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. In the LFS report, they are excluded in the estimation of the size of working population, i.e., population aged 15 years and older, and in the estimation of the labor force.
d. Developments in the LFS
The LFS, as in any survey, adopts recent developments in statistical methodology/processes and in the education system. The revisions in the LFS are as follows:
II. Concepts and Definitions
a. Reference Period
The reference period for this survey is the “past week” referring to the past seven (7) days preceding the date of visit of the enumerator or the interviewer.
b. Employment Status Concepts
1. Population 15 Years Old and Over
This refers to the number of population 15 years old and over excluding overseas workers. Overseas workers are excluded in the estimation of the size of working population (population aged 15 years and over) since the data on their economic characteristics are not collected because they are not considered part of the labor force in the country.
2. In the Labor Force or Economically Active Population
This refers to persons 15 years old and over who are either employed or unemployed in accordance with the definitions described below.
3. Employed
Employed persons include all those who, during the reference period, are 15 years old and over as of their last birthday, and are reported either:
a. At work, i.e., those who do any work even for one hour during the reference period for pay or profit, or work without pay on the farm or business enterprise operated by a member of the same household related by blood, marriage, or adoption; or
b. With a job but not at work, i.e., those who have a job or business but are not at work because of temporary illness or injury, vacation, or other reasons. Likewise, persons who expect to report for work or to start operation of a farm or business enterprise within two weeks from the date of the enumerator’s visit are considered employed.
4. Underemployed
Underemployed persons include all employed persons who express the desire to have additional hours of work in their present job, or an additional job, or to have a new job with longer working hours. Visibly underemployed persons are those who work for less than 40 hours during the reference period and want additional hours of work.
5. Unemployed
Starting April 2005, the new unemployment definition was adopted per NSCB Resolution Number 15 dated 20 October 2004. As indicated in the said resolution:
Unemployed persons include all those who, during the reference period, are 15 years old and over as of their last birthday, and are reported as persons:
a) Without work, i.e., had no job or business during the reference period;
b) Currently available for work, i.e., were available and willing to take up work in paid employment or self-employment during the reference period, and/or would be available and willing to take up work in paid employment or self-employment within two weeks after the interview date; and
c) Seeking work, i.e., had taken specific steps to look for a job or establish a business during the reference period, or
Not seeking work due to the following reasons: (1) fatigued or believed no work available, i.e., discouraged workers; (2) awaiting results of previous job application; (3) temporary illness or disability; (4) bad weather; and/or (5) waiting for rehire or job recall.
6. Persons Not in the Labor Force
Persons 15 years old and over who are neither employed nor unemployed according to the definitions mentioned. Those not in the labor force are persons who are not looking for work because of reasons such as housekeeping, schooling. and permanent disability. Examples are housewives, students, persons with disability, or retired persons.
SGD. DANITES E. TEÑIDO, Ph.D.
Chief Statistical Specialist
/MAQ
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