F

Employment Situation Update

January to July 2022
The country’s unemployment rate is slowly improving,
recording an average of 5.9% for the period January to
acts
July 2022, according to the latest Labor Force Survey in
results (LFS) of the Philippine Statistics Authority
(PSA). This is 2.1 percentage points lower compared
to the 8.0% unemployment rate in the same period in
2021. Further, while this figure reflects an improvement
igures
of 1.9 and 4.4 percentage points relative to the annual Congressional Policy and Budget Research Department
House of Representatives
average rates in 2021 and 2020 (7.8% and 10.3%,
September 2022 (No.54 )
respectively), the same is still higher by 0.8 percentage
point compared with the pre-pandemic rate of 5.1% in
2019 (Table1).
Employment by Major Sector and Mean Hours of
The underemployment rate also improved to an average Work. The Services sector cornered the bulk of the
of 14.2% in January to July 2022 from an average of share in the number of employed persons with 58.1%,
16.4% in the same period of 2021. In 2020 and 2021, followed by the Agriculture sector and the Industry sector
the annual average rates were at 16.2% and 15.9%, with 23.5% and 18.4%, respectively. Such sectoral
respectively. employment distribution has not changed much even at
the height of pandemic in 2020 to 2021 (Table 2).
The average Labor Force Participation (LFP) rate in
January to July 2022 was at 63.9% with 48.8 million Employed persons in January to July 2022 worked for
individuals joining the labor force. Efforts to achieve full weekly mean hours of 40.6, which is 1.1 hours more
economic recovery from the lingering pandemic may than the average of 39.5 hours in the same period in
also be hampered by the global economic slowdown as 2021. The mean hours of work at the height of the
magnified by the prolonged war in Ukraine (World Bank, pandemic was 38.8 in 2020 and 39.5 in 2021, while
2022) with adverse impact on investment, business prior thereto the weekly mean hours was 42.1 in 2019.
expansion, and job creation.
Table 2
Distribution of Employed Persons by Sector
Table 1 and Mean Hours of Work per Week
Employment Situation, 2019 - July 2022 2019 - July 2022
Annual Jan-July Annual Jan-July
Particulars Particulars
2019 2020 2021 2021 2022 2019 2020 2021 2021 2022
Population 15
Employment
years and older 72,143 73,733 75,240 74,891 76,341 94.9 89.7 92.2 92.0 94.1
(‘000)
Rate (%)
Labor Force By Sector
Participation 61.3 59.5 63.4 63.1 63.9 Agriculture 22.2 24.8 24.2 23.9 23.5
Rate (%) Industry 19.3 18.3 18.4 18.6 18.4
Number of Services 58.4 56.9 57.4 57.5 58.1
44,224 43,871 47,685 47,250 48,768
Persons (‘000)
Mean Hours
Employment of Work per 42.1 38.8 39.5 39.5 40.6
94.9 89.7 92.2 92.0 94.1
Rate (%) week
Number of
Employed 41,949 39,352 43,989 43,494 45,882 Source: PSA Labor Force Survey Results
Note: 2019 (annual report), 2020 (average of quarterly reports), 2021 and 2022
Persons (‘000)
(average of monthly reports).
Underemploy-
13.8 16.2 15.9 16.4 14.2
ment Rate (%)
Number of
Underemployed 5,789 6,375 6,996 7,117 6,528 Monthly Employment Situation. From January 2021
Persons (‘000)
Unemployment to July 2022, the monthly estimates show improving
5.1 10.3 7.8 8.0 5.9
Rate (%) unemployment rates (Figure 1). High unemployment
Number of
Unemployed 2,255 4,519 3,697 3,755 2,887 rates were recorded in January (8.7%), February
Persons (‘000) (8.8%), April (8.7) and September of 2021 (8.9%) while
Source: PSA Labor Force Survey Results improving rates were recorded beginning November
Note: 2019 (annual report), 2020 (average of quarterly reports), 2021 and 2022
(average of monthly reports). 2021 (6.5%) to July 2022 (5.2%).
 Figure 1 Table 3
Unemployment Rates, January 2021- July 2022 Reasons for Being with Job but not at Work
2020, 2021 and January-July 2022
Annual Jan-July
Particulars
2020 2021 2021 2022
8.7 8.8 8.7 8.9
Number of Persons (‘000) 3,745 494 491 362
Unemployment Rate

8.1
7.7 7.7
7.4
7.1 6.9 Reasons (%)
6.5 6.6 6.4 6.4
5.8 6.0 6.0 ECQ/Lockdown/Covid-19
5.7 54.0 17.8 26.7 1.8
5.2 Pandemic
Variable working time /
8.1 17.3 14.7 16.3
nature of work
Health / medical limitations 6.8 12.7 10.5 14.3
Personal / family reasons 6.7 10.0 8.8 13.8
J F M A M J J A S O N D J F M A M J J Poor business condition 4.3 9.4 7.9 12.7
Bad weather/natural disaster 3.1 7.7 8.0 4.0
Source: PSA 2021 and 2022 Monthly Labor Force Survey Results.
Reduction in clients / work 2.3 6.7 2.9 5.9
Start / end / change of job 2.6 2.5 2.2 5.1
Meanwhile, the monthly underemployment rates vary Other reasons 12.1 14.9 18.2 26.0
Source: PSA Labor Force Survey Results
from January 2021 to July 2022 (Figure 2). The highest Note: 2019 (annual report), 2020 (average of quarterly reports), 2021 and 2022
rates were recorded in July (20.9%), February (18.2%), (average of monthly reports).

and April of 2021 (17.2%). On the other hand, the

Unemployment Rate By Region. All regions across
lowest rates were in May 2021 (12.3%) and June 2022
the country have recorded significant improvements in
(12.6%).
unemployment rates from January to July 2022 survey
results when compared with the annual 2021 and 2020
Figure 2 estimates (Table 4). Eleven (11) of the 17 regions
Underemployment Rates, January 2021- July 2022 reflect unemployment rates lower than the country’s
overall estimate of 5.9%. On the other hand, five (5)
regions lag behind with higher unemployment rates
20.9 led by the National Capital Region (NCR) with 7.2%;
Underemployment Rate

18.2
17.2
followed by the Bangsamoro Autonomous Region in
16.0 16.2 16.1 16.7 15.8
14.2 14.7 14.2 14.7 14.9
14.0 14.0
14.5
13.8
Muslim Mindanao (BARMM) with 7.1%; Region IV-A or
12.6
12.3
CALABARZON with 6.8%; Region V or Bicol Region
with 6.4%; and Region I or Ilocos Region with 6.1%.
Table 4
Unemployment Rates by Region
J F M A M J J A S O N D J F M A M J J 2020, 2021, and January - July 2022
Annual Jan-July
Particulars
Source: PSA 2021 and 2022 Monthly Labor Force Survey Results. 2020 2021 2022
Philippines 10.30 7.76 5.93
National Capital Region 11.68 10.36 7.22
An average of 362,000 or 0.8% of employed persons in Cordillera Autonomous
10.80 5.31 4.59
January to July 2022 did not report to work for various Region
reasons. This reflects a reduction of 129,000 from the I – Ilocos Region 13.45 7.90 6.07
II – Cagayan Valley 8.72 5.55 3.64
491,000 average in the same period in 2021. Further,
III -Central Luzon 13.46 7.69 5.29
the number is likewise lower by 132,000 compared with IV-A– CALABARZON 11.70 11.13 6.84
the 2021 annual average of 494,000 and significantly IV-B – MIMAROPA 7.40 8.07 5.62
much lower than the 2020 average of 3.7 million workers V – Bicol Region 9.64 8.82 6.40
VI – Western Visayas 7.87 7.28 5.43
(Table 3). VII – Central Visayas 10.45 7.78 5.93
VIII – Eastern Visayas 8.06 6.58 5.85
Quarantine protocols are no longer in the top list of IX – Zamboanga Peninsula 10.29 4.17 3.97
reasons for not reporting to work, unlike in 2020 and X – Northern Mindanao 6.49 5.39 4.83
XI – Davao Region 9.32 5.02 3.83
2021. The reasons cited for not reporting to work were: XII – SOCCSKSARGEN 9.40 5.32 4.61
a) variable working time or nature of work (16.3%); b) XIII – CARAGA 7.76 6.56 4.22
health/medical limitations (14.3); c) personal or family Bangsamoro Autonomous
10.57 7.28 7.05
Region in Muslim Mindanao
reasons (13.8%); and d) poor business condition
Note: The figures represent average of quarterly reports (January, April, July
(12.7%). and October) PSA-LFS monthly reports do not include regional data.