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SWS: 10M Filipinos unemployed in 2nd quarter of 2009

At least 10 million adult Filipinos were unemployed in the second quarter of 2009, according to a survey by pollster Social Weather Stations (SWS).

But SWS said the survey, conducted from June 19 to 22, said the 25.9-percent adult unemployment rate was much lower than the record-high 34.2 percent (14 million) in February.

"The survey found that the unemployment rate consisted of 10% who were retrenched, 9% who resigned or voluntarily left their old jobs, and 6% first-time job seekers," it said on its website.

The survey – not commissioned by any party but done “for public service" – was conducted using face-to-face interviews of 1,500 adults: 300 each from Metro Manila, Visayas, and Mindanao, and 60o from the Balance of Luzon. The Balance of Luzon is composed of all provinces in Luzon minus Metro Manila.

Sampling error margins of ±2.5% for national percentages, ±6% for Metro Manila, Visayas, and Mindanao, and ±4% for Balance Luzon applied to the survey.

SWS said the retrenchment consisted of 7 percent whose previous contact was not renewed, 2 percent whose employer closed operation, and 1 percent who were laid off.

The June 2009 survey found that the number of employees laid off from work went down sharply from 9 percent in February to 1 percent in June. Meanwhile, employees whose contracts were not renewed rose from 3 percent to 7 percent in the second quarter.

Two percent said their employers closed operation.

Nine percent resigned or left their old jobs voluntarily, and 6 percent were first-time job seekers.

The pollster noted that unemployment has been high since 2005, with adult unemployment at 20% or above since May 2005 - except in December 2007 when it was at 17.5 percent.



"In the SWS data series which began in 1993, unemployment was below 15% until March 2004, and then ranged from 16.5% to 19.0% from August 2004 to March 2005," it noted.

SWS said that over the past four quarters, adult unemployment was dominated by those who lost their jobs through economic circumstances beyond their control, and those who voluntarily left their old work.


In the second quarter survey, the SWS noted that the unemployment rate would be much lower - at 19.4 percent - if the government's new definition of unemployment is applied.

Since April 2005, SWS noted the new official definition has included the concept of availability for work; it subtracts those not available for work, even though looking for work, and adds those available for work but not seeking work for the following reasons: tired/believe no work is available, awaiting results of a job application, temporarily ill/disabled, bad weather, and waiting for rehire/job recall.

"If the official definition is applied, the unemployment rate among adults 18 years old is 19.4% in the SWS June 2009 survey. It is lower than when computed using the traditional definition because the correction for those looking for work but 'not truly available' is much larger than the correction for those 'actually available' though not looking for work at the moment," it said.

But the SWS said its data on unemployment refers to the population of adults in the labor force, and does not necessarily follow the new definition under the Arroyo government.

It noted that respondents in the standard SWS surveys are those at least 18 years old.

"The 1993-2008 figures are consistently based on the traditional definition of unemployment as not working and at the same time looking for work. Those not working but not looking for work are excluded from the labor force; these are housewives, retired, disabled, students, etc.," it said.

On the other hand, SWS said the "official" lower boundary of the labor force has always been 15 years of age.

Formerly, it said the official definition of the unemployed was those not working and looking for work. – Mark Merueňas, GMANews.TV
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