The services sector grew at an average of 3.58 percent per year. However, it failed to meet its target from 20042009 with an average of negative 4.30 percent. While trade was expected to contribute significantly, it failed to do so, not meeting its yearly target at an average of negative 8.32 percent.
B. Labor and Employment High underemployment rate The region had high employment rate levels averaging 93.61 percent annually, while its unemployment rate showed a decreasing trend. It is important to note the high underemployment rate at an average of 25.63 percent, higher than the national average of 19.95 percent. (Table 2.3) This indicates underutilization of skills, economic capacity, and employed workers. The challenge for the region would be in harnessing the potentials of its human resources. The high underemployment is reflective of the low level of economic activity in the region. Table 2.3. Labor Force, Labor Force Participation Rate, Employment Rate, Underemployment Rate, 2004-2009 2004
2005
2006
2007
2008
-
944,500
965,750
968,750
998,000
-
Labor force participation rate
69.58
67.25
66.63
66.20
65.90
67.20
Employment rate
89.63
93.70
94.53
93.53
95.40
94.90
Unemployment rate
10.38
6.30
5.48
6.48
4.60
5.10
Labor force
2009
Source: NSO.
Low labor participation rate The region had a low labor participation rate averaging 67.13 percent per year. This means that of the 15 year old and above who formed part of the labor force, only 67.13 percent chose to be part of the labor force and/or actively sought employment opportunities.
Low labor productivity As of 2008, about 44 percent of those employed belonged to the agriculture sector. Despite this, it was only able to produce a puny output or a labor productivity of P15, 103. On the other hand, 13 percent of those employed belonged to the industry sector but it was able to generate thrice that of agriculture for a labor productivity of P45, 656. The challenge lies on how to channel the labor force in sectors that are more productive. For instance, the service sector, particularly the tourism industry, is labor-intensive yet at the same time, it is capable of generating so much output. Another example is manufacturing sector, it is both labor-intensive and capable of high output-yield. Also, statistical data on labor and productivity should be enhanced to provide more meaningful basis for planning and development.
Caraga Regional Development Plan, 2011-2016 | Chapter 2
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