EMPLOYMENT STATUS IN THE

PHILIPPINES
YEAR 1991-2010

Model By:
Diaz, Joanne
Dieza, Vanica Paula
Hernandez, Dianne Katreena

Independent Variable
Number of Registered Applicants
Registered Number of Job
Vacancies
Number Tertiary Graduates

Dependent Variable
Number of Employed

Persons

Theoretical Framework
We all know that the government has set
out plans in the area of employment
and industrial relations such as MTPDP
and NEP. Human development, as the
MTPDP puts it, is, for the majority of
Filipinos at this time, synonymous with
the attainment of the most basic needs,
including adequate nourishment,
freedom from avoidable diseases,
adequate shelter and clothing,
education, physical security and safety.

Theoretical Framework
"Poverty is no more than the
inability to satisfy these
irreducible needs. Therefore, the
main task of human development
is to reduce and ultimately
eradicate poverty. And the
solution seen by the Philippine
government requires
industrialization and
development and the consequent
employment of people in

Theoretical Framework
Employment is therefore apriority
of human development. The
creation and increase in
employment opportunities is part
of the plan. And the question
here, have the government
succeed in doing it? (Philippine
Employment Development Plan
2011-2016)

Theoretical Framework
Employment

is an indicator of the strength

in the economy. There has traditionally
been a close relationship between
economic growth and employment.

In

general, people with higher levels of

education have better job prospects; the
difference is particularly marked between
those who have attained upper secondary
education and those who have not.Tertiary
graduates are more likely to be in work
than non-graduates.

Job

vacancies statistics provide an

important indicator of current and future
demand for labor. There is a relationship
between change in the number of job
vacancies and growth in employment. Also
change in the number of job vacancies can
provide an indication of short-term and
longer-term employment growth.

The

ability to accurately forecast

employment may enable better predictions
of upturns and downturns in the economy.

Applications/Usefulness
Employment is a key indicator of
the strength of the economy.
There has traditionally been close
relationship between economic
growth and employment, and the
ability to accurately forecast
employment may enable better
predictions of upturns and
downturns in the economy.

Applications/Usefulness
. The econometric model signifies
the changes in the employment
status in the country for the past 20
years.
This model is significant and is
applicable to understand the
difficulty of employment in the
Philippines.

Applications/Usefulness
It

provides measures of labor

demand, the structure of
employment, and the extent to
which the human resources are
actually utilized or not.

The

data provide the basis for

monitoring current trends and
changes in employment situation.

Applications/Usefulness
It

can be an essential base for

the design and evaluation of
government programs geared to
employment creation.

The

measurement of the
relationships of these variables
provides information on the
adequacy of employment and
availability of jobs on tertiary

Source:

Period
Time

series
From 1991- 2010

Simple Regression

Number of Registered Applicants

Interpretation
Having a t-stat of 5.62 greater
than 2.10 with 5% level of
significance for Number of
Registered Applicants (NRA)
means that the X variable is
significant. Furthermore, the
results show that Number of
Applicants is directly related to
Employment. This means that as
NRA increases, employment
increases and vice versa

Number of Tertiary Graduates

Interpretation
Having

a t-stat of 16.35 greater

than 2.10 with 5% level of
significance for Number of
Tertiary Graduates (NTG) means
that the X variable is significant.
Furthermore, the results show
that Number of Tertiary
Graduates is directly related to
Employment. This means that as
NTG increases, employment
increases and vice versa

Job Vacancies

Interpretation
Having

a t-stat of 12.45 greater

than 2.10 with 5% level of
significance for Number of Job
Vacancies means that the X
variable is significant.
Furthermore, the results show
that Number of Job Vacancies
(NJB) is directly related to
Employment. This means that as
NJB increases, employment
increases and vice versa

Multiple Regression

Multicollinearity tests

Heteroskedasticity

New Data Set

Residuals

The model is homoscedastic

Autocorrelation

Result:
DL DU: 1.00-1.68
* The new data is conclusive

Final Model

Interpretation
Having

a t-stat of 3.5 and 2.9 greater

than 2.12 with 5% level of significance
for Number of Tertiary Graduates
(NTG) and Number of Job Vacancies
(NJB) means that these two X
variables are significant. Furthermore,
these means that they have a direct
relationship with employment. This
means that as NTG and NJV increases,
Employment increases and vice versa

Interpretation
Moreover, having a t-stat of
-2.47 greater than 2.12 with 5%
level of significance for Number
of Registered Applicants (NRA)
means that the X variable is
significant. Furthermore, having
a negative result means that it
has an inverse relationship with
employment. This implies that as
NRA increase, employment
decreases and vice versa

Conclusion
The model can be explained with an
R square of 0.9633 or 96.33%.
Employment = 1.970252 0.13926
(Number of Job Applicants) +
0.399718 (Tertiary Graduates) +
0.184327 (Number of Job Vacancies)
This implies that Employment will
increase by 0.13926 for every
decrease in number of Job Applicants,
assuming all other factors are held
constant.

Conclusion
On

the other hand, in every

increased in Number of Tertiary
Graduates, employment will
increase by 0.399718 assuming
all other factors are held constant
and in every increase of Job
Vacancy, employment will
increase by 0.184327 assuming
all other factors are held
constant.

References
Asian

Development Bank

www.adb.org

DOLE- Department of Labor and

Employment

www. dole.gov.ph

NSCB- National Statistics

Coordination Board

www.nscb.gov.ph