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Review of Methodology for the Estimation of Annual Number of Hours Worked for the Computation of Labor Productivity Statistics

Year: 2019
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Abstract:

The Sustainable Development Goal 8 seeks to promote full and productive employment and decent work for all. To achieve this goal, it is important to make efficient use of a country’s labor capital to optimize its productivity. Thus, there is a need to measure and monitor labor productivity in the country. Despite established methodologies regarding Labor and Employment Statistics in the Philippines, there is no official approach in estimating the annual number of hours worked of workers-- a crucial input for Labor Productivity statistics. Hence, this study aims to propose a sound methodology for the annualization of hours worked. Several methodologies from different countries were studied and evaluated to recommend a methodology that is applicable to the Philippine setting. The review of the different methodologies resulted to a recommended formula that incorporated hours of work information collected from the Labor Force Survey, while also deducting for Philippine holidays, and other nuances which are not deemed as productive time.

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