“The PhilippineEmployment Scenario” Must Know For the Youth
Session Objectives• At the end of 30 minutes, the participants shall be able to: Define and/or explain some basic employment terms and concepts; Relate the terms and concepts with actual Philippine employment data; and Discuss some local and global employment prospects.
Basic Employment Terms and ConceptsLabor Force The population 15 years old and over, whether employed or unemployed, who contribute to the production of goods and services in the country.
Not in the Labor Force Persons considered not in the labor force are those who are not working and are not available for work during the reference week, and persons who are not available and are not looking for work. (e.g., housewives, students, disabled or retired persons and seasonal workers.)
Labor Force Participation RateProportion, in percent, of the totalnumber of persons in the labor force tothe total household population 15 yearsold and over.
Employed Persons aged 15 years old and above who during the reference week, are reported either: • At work even for an hour; or • With a job/business even though not at work because of temporary illness/injury, vacation or other leave of absence, bad weather or strike/ labor dispute or other reasons. Likewise, persons who are expected to report for work or start operation of a farm or business enterprise within two (2) weeks from the date of the enumerators visit, are considered employed.
Unemployed Persons in the labor force who did not work or had no job/ business during the reference week and were reported looking and available for work. Also considered as unemployed are persons without a job or business who were reported not looking for work because of their belief that no work was available or because of temporary illness/disability, bad weather, pending job application or waiting for interview.
Underemployed Employed persons who desire to have additional hours of work in their present job or in an additional job, or to have a new job with longer working hours.Visibly Underemployed Employed persons who work for less than 40 hours during the reference week and still want additional hours of work.Invisibly Underemployed Employed persons work for 40s hours or more during the reference week and still want additional hours of work.
The Philippine Employment Scenario Key Employment Indicators Philippines: 2006-2007 (In thousands except rates) Indicator Year-on-Year 2007 2006 Change Household Population 15 Years Old 56,569 55,230 1,339 & Over Labor Force 36,213 35,464 749 - Employed Persons 33,560 32,636 924 - Unemployed Persons 2,654 2,829 -175 Underemployed Persons 6,756 7,371 -615 - Visibly underemployed 3,908 4,359 -451 Not in the Labor Force 20,356 19,766 590 LPFR (%) 64.0 64.2 Unemployment Rate (%) 7.3 8.0 Underemployment Rate (%) 20.1 22.6 - Visible Underemployment Rate (%) 11.6 13.4 Source: National Statistics Office, Labor Force Survey
1. The Employment Situation, 2007 Working Age Population, Labor Force and Labor Force Participation Rate (LFPR) In 2007, the country’s working-age population (persons 15 years old and over) stood at 56.569 million, of which 36.213 million were in the labor force. Correspondingly, the labor force participation rate (LFPR) for the reference period was registered at 64.0 percent. Employment Total employed persons in 2007 was estimated at 33.560 million, up by 924,000 from the employment level of 32.636 million recorded a year ago. This translates to an employment rate of 92.7%.
The services sector accounted for the biggest share of the employment pie at 50 percent, followed by Agriculture, Fishery and Forestry, 35 percent; and Industry with 15 percent. The major portion of employment in the Services sector was found in Wholesale and Retail Trade at 38.9 percent, followed by Transport, Storage and Communication with 15.6 percent. Employment in Industry was accounted for largely by Manufacturing (61.1%). Half (52.2%) of the employed were wage and salary workers while almost forty percent (35.8%) were own-account workers. Persons in full time employment (worked 40 hours or more) accounted for 62.1 percent of the total employed workforce while 36.5 percent engaged in part-time employment.
Unemployment Unemployment in 2007 stood at 2.654 million (7.3% unemployment rate) Almost half (1.336 million or 50.3%) half ofthe unemployed were young workers aged 15- 24 years old, closely followed by primeworking age 25–54 years old (1.214 million or45.7%) Youth unemployment rate which stood at 17.4 percent was more than twice the national rate of 7.3 percent. A large proportion of the unemployedwere high school graduates (46.0% or 1.221million) and college graduates (38.2% or 1.014million).
The National Capital Region (NCR) posted the highestunemployment rate of 12.2 percent. Underemployment The number of underemployed persons (thoseemployed expressing the desire for additional hours ofwork/additional job) declined by 615,000 – from 7.371million in 2006, to 6.756 million in 2007). This corresponds to an underemployment rate of20.1% down from 22.6% a year before Underemployment is a rural phenomenon, mostly rural workers found in the agriculture, fishery and forestry sector, mainly because of the seasonal nature of farm employment.
2 Overseas Employment Contribution The overseas labor market has been a major provider of jobs to Filipinos for several decades now; In 2006, the country deployed a total of 1,062,567 OFWs, majority of which are land-based workers (74.17%); Land-based new hires totaled 305,554 in 2007, up by only 1.0% from the 2006 new hire deployment figure of 302,673; The bulk of land-based OFWs were deployed in the Middle East (58.7%) and in Asia (28.3%); By gender, female OFWs dominated the overseas Market ,accounting for 60.0 percent of the total number of new hires; specifically in professional & service occupations; The bulk of overseas deployment consisted of Service and Professional/Technical workers.
Employment Prospects : Local Market The Key Employment Generators (KEGs) Cyberservices Hotel & Restaurant Aviation Agribusiness Health Services Mining Medical TourismSource: National Manpower Summit
The KEGs are expected to generate an estimated 4,081,447 jobs over the period 2006 to 2010: 1,383,890 – Cyberservices 400, 280 – Hotel & Restaurant 27,581 – Aviation 2,044,161 – Agribusiness 58, 003 – Health Services 39, 382 – Mining 128,150 – Medical TourismSource: National Manpower Summit (based on industry projections)
In-Demand Skills in Key EmploymentGenerators: 2006-2010 Cyberservices - ICT services and ICT-enabled services wherein the Board of Investments lists contact centers, back office processing, medical transcription, software development and animation as the five ICT priority sectors. • Animation – Entry Level Animator
• Back Office Processing – HR Analyst – Financial Accountant – Engineer• Contact Center – Agent• Medical Transcription – Trasnscriptionist – Editor• Software Development – Programmer
Hotel & Restaurant – Front Office Agent/Attendant – Cook – Food Server & Handler – Food & Beverages Service Attendant – Waiter – Bartender Aviation – Pilot – Mechanic – Air Traffic Controller Agribusiness – Inland & Coastal Fisherman – Oyster/Mussle Farm Cultivator – Vegetable Farmer – Fruit Tree Farmer – Livestock & Poultry Producer – Horticulturist
Health Services – Nurse – Health Aide – Nursing Aide – Dentist Mining – Skilled Miner Medical Tourism – Massage Therapist – “Trained” Nurse
Employment Prospects : Global MarketJob Opportunities Overseas By Major Skills: 2006 – 2010 Production 19.82% Seabased Agricultural 25.22% 0.09% Professional & Service Technical 34.94% Sales 17.21% 1.13% Sea-based (1.4M) Clerical Administrative Land-based (4.2M) 1.47% & Managerial 0%TOTAL ESTIMATED EMPLOYMENT GENERATION (5.6M)Source: National Manpower Summit
In-Demand Skills in the Global Market (Top 20 Occupations) Rank Occupation Number 1 Household Worker 91,412 2 Production & Related Workers NEC 24,279 3 Caregivers & Caretakers 14,412 4 Nurses Professional 13,525 5 Waiters Bartenders & Related Workers 7,941 Char workers Cleaners & Related 6 6,706 Workers 7 Laborers/Helpers General 5,905 8 Caretakers Building 5,396 9 Laborers/Helpers Construction 5,376 10 Plumber & Pipe fitters 5,120Source: POEA (based on 2006 deployment data)
• Overseas employment remains to be a legitimate option for the country’s workforce;• Skills shortages in developed countries have expanded the market for OFWs especially in the medical and health profession;• Development of export capacity in skilled labor by developing countries has resulted to more competitive workers qualifying for overseas jobs (i. e. software development and e-services);• Due to the economic boom in the Kingdom of Saudi Arabia, this country will remain to be the perennial bright spot for rehires particularly for production workers such as Construction workers (Carpenters, Masons, Tile Setters) and other trades and related workers (Plumbers, Machine Operators, Drivers, etc.). Major companies like Saudi Aramco & Saudi Basic Industries (SABIC) will need more engineers & construction workers until 2010 to work in $95 million worth of projects;Source: POEA advisory
• Women migrant workers will also continue to comprise the greater bulk of the total deployment of newly hired OFWs with the upsurge in the demand for Medical workers particularly Nurses and Health Care Assistants wherein a significant portion of job orders require female workers; • The US market for Teachers is likewise on an upward trend particularly in the field of science and mathematics; • There are bright employment prospects in the United Arab Emirates based on the employment opportunities for Filipino workers that are expected in the following sectors:Source: POEA advisory
Construction and Tourism – various skills such as Engineers, Welders, & other skills will be needed for on-going construction of man- made islands in the Northern Emirates. Upon completion, these islands, being tourist attractions will require service workers such as Gardeners, Waiters/Waitresses and other Hotel staff; Health and Related Services – new hospitals and private clinics are being built and Filipino medical professionals are highly preferred in this sector; Oil Industry – former refinery workers are being hired in this sector where Filipinos occupy technical support position; Household Services – the hiring of Filipino household workers, who constitute the bulk of the deployment to the UAE, will continue.Source: POEA advisory
• The demand for foreign workers in Israel has been rising particularly in three (3) sectors: Agriculture, Construction and Care- giving. Our country regards Israel as a traditional market for Caregivers; • The Philippine embassy in Cairo, Egypt recently reported about job opportunities in Sudan following the passage of Sudan’s Freedom of Investment Act which paves the way to the flow of investments into the country: The Foreign Minister of Sudan is looking forward to the entry of Filipino construction labor for the country’s various Construction projects; Filipino healthcare professionals, particularly Nurses, may be tapped to compliment Sudan’s growing medical needs.Source: POEA advisory
• Korea’s Construction industry is seeking to hire thousands of foreign workers as industrial trainees amidst the shortage of workers in the local labor market; • According to the head of a delegation of Singaporean recruitment agencies who recently visited the Philippines, the current economic environment in Singapore is now conducive to the entry of more foreign workers and the demand could reach a high of 53,000 during the next five years and 50 to 60 percent of this number could come from the Philippines to work in : the hotel & gaming industry as managers, supervisors, croupiers, dealers, chambermaids & waiters/waitresses; the construction sector as architects, engineers & draftsmen.Source: POEA advisory
• Another country which has embarked on one of the most ambitious development programs in the world today is Qatar, generating thousands of job opportunities for foreign workers in the oil and gas sector; infrastructure and construction; health and medical services; • The government of Canada has recently opened its labor market for temporary workers to be deployed in the provinces of Manitoba, Saskatchewan, Alberta and British Columbia. Manpower requirements consists of construction workers (welders, heavy equipment operators, pipe fitters, plumbers, carpenters, electricians and general laborers); farm and forestry workers; service workers (waiters/waitress, room attendants, cooks, housekeeping workers); agricultural production workers; nurses; and caregivers;Source: POEA advisory
•There is a rising demand for overseas workers in Malaysia consisting of the following categories - IT and related skills - skilled workers in shipbuilding and ship repair - casino workers and entertainers • Brunei’s oil and gas, hotel and restaurant and construction industries offer good employment opportunities for skilled workers and professionals such as fabricators, riggers, high pressure operators, managers and engineers (civil, structural, electrical); • Korea and Taiwan remains to be major destinations for Filipino factory workers. At the same time, the construction and ship-building sectors in Korea will require skilled workers while there are emerging opportunities for IT and healthcare workers in Taiwan;Source: POEA advisory
• There will be more employment opportunities for Filipino nurses in the ASEAN region under the ASEAN Mutual Recognition Arrangement (MRA) on nursing services, under the MRA, licensed Filipino nurses will be recognized by the host country and allowed to practice their profession in the ASEAN member countries and vice-versa; • The projected demand for Filipino nurses in various overseas destinations consists of: – 1 million nurses up to 2010 in the USA – 10,000 registered nurses up to 2010 in Canada – 10,000 nurses up to 2008 in Ireland – 50,000 nurses by 2010 in the UK – 40,000 nurses by 2010 in Australia (immigrant status) • There is also a growing demand for nurses specializing in geriatric care, acute/intensive care, cardiovascular care, renal, dialysis, oncology and telemetry;Source: POEA advisory
• There are plans to hire Filipino nurses for Auckland, New Zealand by the counties Manukau District Health Board under the direct – hiring scheme with the POEA; • Hawaii is a potential market for Filipino nurses due to the present nursing shortage in this state. Filipino nurses who have passed the required state examination can enter Hawaii as licensed nursing professionals and fill-in the supply gap; • An Agreement has also been forged between the Philippines and Bahrain in an exchange training and recruitment program for Filipino nurses and other health professionals;Source: POEA advisory
• Employment Opportunities for License Practical Nurses (LPNs) in the USA: The employment of LPNs is projected to grow by 14% between the period 2006 and 2016 in response to the long term care needs of an increasingly elderly population and the general increase in demand for health care services; The projected shortage of medical workers particularly nurses which is estimated to reach around 810,000 by 2020, will create job opportunities for Filipino nurses, including LPNs, as they are preferred over other nationalities; Home health care agencies will offer a large number of new jobs for LPNs because of an increasing number of older people with functional disabilities, consumer preferences for care in the home and technological advances that it make possible to bring increasingly complex treatments into the home.Source: POEA advisory
• The deployment of OFWs in Guam to work in the U.S. Marines relocation project from Okinawa to Guam is a major possibility by 2010. Considering that there is a shortage of skilled manpower in Guam, workers will be needed for the construction of housing and other infrastructure needed for the relocation; • The construction boom in Kuwait will create 11,356 job opening; • Other employment opportunities are expected from the construction and oil exploration sectors in Libya and likewise in hotel services, tourism and fisheries;Source: POEA advisory
Hot Jobs: Top 20 Vacancies, Local/Overseas (thru Phil-Jobnet, April 25 – May 2, 2008) Rank Position/Title No. Location 1 Professional Nurse(General) 5,000 Overseas 2 Staff Nurse 3450 Overseas 3 Call Center Agent 814 Local 4 Customer Service Assistant 300 Local 5 Production Worker/Factory 289 Local/Oversea Worker s 6 Sales Clerk 236 Local 7 Rigger 215 Overseas 8 Electrical Engineer (General) 206 Local/Oversea s 9 Cashier 177 Local/Oversea s 10 Technical Support Staff 150 Local
(con’t.) Hot Jobs: Top 20 Vacancies, Local/Overseas thru Phil-Jobnet, April 25 – May 2, 2008 Rank Position/Title No Location 11 Mechanical Engineer (General) 138 Local/Overseas 12 Merchandizer 135 Local/Overseas 13 Sales Associate Professional 115 Local 14 Electrician (General) 111 Local/Overseas Sales Supervisor 111 Local 15 Project Analyst 102 Overseas 16 Civil Engineer (General) 90 Local/Overseas 17 Pipe Fabricator 86 Overseas 18 Service Crew 78 Local 19 Draftsman (General) 77 Local/Overseas 20 Heavy Truck Driver 76 Overseas
Occupations with Supply Gaps in Priority Sectors (Hard-to-Fill)Cyber services Hotel & Restaurant • Engineer • Cook • Accountant • Tour Guide • Animator • Reservation Officer for Hotels & Travel • Programmer Agencies • Contact Center Agent • Butler • Medical Transcriptionist • Barista • Editor
Occupations with Supply Gaps in Priority Sectors (Hard-to-Fill) Health, Wellness & Medical Tourism • Doctor • Nurse • Massage Therapist • Spa TherapistMining • Geologist • Mining Engineer • Metallurgical Engineer