Prior to the crisis, average per capita income was Php42,717 (Table 3). Modest growth (about 2%) occurred beginning 2007 and extended to the following year. Rural areas registered higher
growth than the other areas, with 4.2% growth in 2007 and 2.4% in 2008. Growth in urban areas outside NCR has not been as robust, with barely 1% in 2008. Among income classes, the poor (1st and 2nd quintile) experienced higher growth than those in the upper classes (11% for the 1st quintile and 7% for the 2nd quintile in 2008). Note however that incomes declined for the poorest quintile in 2007. The bulk of growth occurred in the 3rd and 4th quintiles where most of the OFWs belong. In contrast, per capita incomes in the richest quintile stagnated in 2008. Households in agriculture and services experienced positive growth. However, those in the industry sector already experienced decline in their incomes even before the crisis. Similarly, wage and salary workers and unpaid family workers experienced decline in 2008 in contrast to the own account workers’ high income growth of 6.2%.
Estimated mean income declined by 2.1% in 2009. However, the levels across groups are still higher than 2007 figures. Certain exceptions can be named though, for instance, households in urban areas outside Metro Manila, which belong to the richest quintile. As expected, those that belong to the industry sector took a hit. Their income levels are lower in 2009 than in 2007 by about Php 2,500. The same is observed among wage and salary workers and substantially among unpaid family workers (about Php 4,200).