SUPPLY-DEMAND

AND THE PHILIPPINE

LABOR MARKET
LESSON 2.5
LABOR SUPPLY,
POPULATION
GROWTH, AND
WAGES
 LABOR SUPPLY

 also known as the labor force

 refers to the portion of the population who is 15
years old and over, who are willing and able to
work, including those who are actively seeking
work but have not found work and those who are
employed
Who are not included in Labor Supply?

● Full-time housewifes and househusbands

● Full-time students
● Those who are physically and mentally disabled
● Those who do not wish to work and are not actively seeking for
work.
 Philippine’s Gross
Domestic Product
● As of April 2014, Labor force was reported at 41.6 million, with an estimated 38.7 million total
employed persons in July 2014, translating into an employment rate of 93%. Of this number of
employed people, 60% were males and the largest number of employed persons consisted of the age
group 25 to 34 years with 26.4% of the total employed. Fifty percent of employed persons were in the
services sector.
● Laborers and unskilled workers comprised one-third of the employed persons. Wage and salary workers
were registered at 57.5%
● Full-time workers are those who work for 40 hours or more while part-time workers work for less than
40 hours.
● In April 2014, full-time workers comprised 59.3 percent of the total employed.

According to “Labor Force Survey” NSO 2015

 Philippine’s Gross
Domestic Product
● Employment growth in large enterprises in Metro Manila continued to be positive at 1.02% during the
fourth quarter of 2014 but this reflected a marked slowdown compared with the same quarter of the
previous year at 3.22%. The country’s labor force grew by an average of 2.5% or an addition of 962,
000 persons in 2014. This placed the total working population in the active workforce at 40.1 million.
The figure corresponds to a higher labor force participation rate (LFPR) of 64.4% than 63.9% in 2013.
● In the year 2014, the average annual employment data showed a positive note that marked the
employment level grew by 2.8% compared to 2013- a net gain or employment generation that exceeded
one million.

According to “Labor Force Survey” NSO 2015

POPULATION An increase in the number of people
that reside in a country, state, county, or
city.

GROWTH
 Philippine Population

● The Philippine Census is an official account of the population of a

certain local administrative unit in the Philippines. The population is
enumerated every 5 years.
● The population of the Republic of the Philippines reached more than 100
million people in 2014, registering an increase of 2.0% versus the
previous year. The population of the Philippines represents 1.38% of the
world’s total population.
 Philippine Population
TheDistribution of Philippine
distribution of Philippine Population
population among the 3
biggest regions is2013
shown in the figure
● The population of the Republic of the Philippines
reached more than 100 million people in 2014,
registering an increase of 2.0% versus the previous year.
Mindanao
24%
The population of the Philippines represents 1.38% of
Luzon
the world’s total population.
Visayas
56%
20%
 Philippine Population
2000-2040
Summary of Projected Population, by Five year interval
Average Annual Growth Rates, Philippines: 2000-2040
Distribution of Philippine Population by Age and Sex, 2010 and 2015
• It is important to study population in terms of age distribution, to see how
much of the population is made up of the age group that can join labor
supply and therefore contribute to income generation and production of
goods. This will mean less dependency on the part of the very young and
the old members of the population.
• Relating this to the concept of demand and supply, one can analyze that
big proportions of dependent members of population contribute to
increased demand without the capacity to contribute to supply of goods
and services. This can lead to a shortage of social services, housing,
schooling, health care, and transportation. The high demand is also a
reason for increasing commodity prices.
 WAGES

 money that is paid or received for

work or services, as by the hour, day,
or week.
 PH. WAGE Current Minimum Wage
National Capital Region (NCR)
SITUATION As of April 4, 2015
(In Pesos)
LABOR
MIGRATION
AND OFW
 Migration- refers to the movement of
people from one place to another.

Labor Migration- is the process of

LABOR shifting a labor force from one physical
location to another
MIGRATION ■Labor migration takes place with the
support of labor force
 Overseas Filipino Workers (OFWs) –
are Filipinos who are presently and
OFWs temporarily working outside the
country.

They may be land-based on sea-

based workers. Ex. Domestic Helpers,
Teachers, Seamen, Nurses
● Primarily because of a high unemployment rate in the country, currently
at 6.4%, Filipinos have started to find work in the countries.
● In addition to this, migration is also affected by wage gaps among
countries: Because wages are higher in the United States and other more
developed economies, Filipino teachers, engineers, doctors, nurses and
other health professionals and technical workers have opted to migrate.
Distribution of Overseas Filipino Workers by Sec and Region (2014)
● Oversupply of workers has resulted in low-wage
levels. Insufficient jobs in relation to the available
labor supply has also led to these low-wage levels
since workers compete among each other for these
limited job openings.
● Those unwilling to work at these low-wage levels look
for greener pastures, which they find in foreign
countries.
Hope you learn
something!