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Technical Notes
Labor Force Concepts

Who belongs to the Working Age Population?

The Working Age Population refers to the population 15 years old and over at a specified time. The working age population is divided into persons in the labor force and persons not in the labor force.

Who are in the Labor Force?

In the Labor Force or Economically Active Population refers to the population 15 years old and over who contribute to the production of goods and services in the country either employed or unemployed.

Employed - persons aged 15 years old and over who are reported:

  1. At Work even for an hour during the reference period.
  2. With a Job/Business Even Though Not At Work during the reference period 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 to start operation of a farm or business enterprise within two weeks from the date of the enumerator's visit, are considered employed.

Underemployed - employed persons who express the 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.

Invisibly Underemployed - employed persons who already worked 40 hours during the reference week but who still want additional hours of work.

Visibly Underemployed - employed persons who worked less than 40 hours during the reference week and wanted additional hours of work.

Unemployed - persons 15 years old and over as of their last birthday and are reported as:

  1. without work, i.e., had no job or business during the basic survey reference period; AND 
  2. currently available for work, i.e., were available and willing to take up work in paid employment or self-employment during the basic survey 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
  3. seeking work, i.e., had taken specific steps to look for a job or establish business during the basic survey reference period; OR not seeking work due to the following reasons: (a) tired/believe no work available, i.e., the discouraged workers who looked for work within the last six months prior to the interview date; (b) awaiting results of previous job application; (c) temporary illness/disability; (d) bad weather; and (e) waiting for rehire/job recall.

Who are the Persons Not in the Labor Force?

Persons not in the Labor Force - refers to the population 15 years old and over who are neither employed nor unemployed e.g. persons who are not working and are not available during the reference week and persons who are not available and are not looking for work because of reasons other than those previously mentioned. Examples are housewives, students, disabled or retired persons and seasonal workers.

Labor Force Participation Rate - proportion of the total number of persons in the labor force to the total household population 15 years old and over.

Employment Rate - the ratio of the total number of employed persons to the total number of persons in the labor force.

Unemployment Rate - proportion of the total number of unemployed persons to the total number of persons in the labor force.

Underemployment Rate- the ratio of the total number of underemployed persons to the total number of employed persons.

Source: Definition of Terms and Concepts Used in the RSET (NSCB)
               Yearbook of Labor Statistics, 1995 (BLES)
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