The unemployment rate in the Philippines fell to a three-month low of 4.4 percent in August 2023 from 4.8 percent in July, the Philippine Statistics Authority said Friday.
National statistician and civil registrar-general Dennis Mapa said in an online briefing the August unemployment rate was also lower than 5.3 percent recorded a year ago.
This translated to about 468,000 fewer unemployed individuals in August, according to the National Economic and Development Authority (NEDA).
“In terms of magnitude, there were 2.21 million unemployed Filipinos aged 15 years and over in August 2023,” Mapa said.
“It was also lower than the 2.27 million unemployed in July 2023 and 2.68 million a year ago,” he said.
The underemployment rate also fell from 14.7 percent in August 2022 and 15.9 percent in July 2023 to 11.7 percent in August this year. This was equivalent to 1.4 million fewer underemployed persons, particularly among those employed in the services and industry sectors.
Underemployed persons are those who have expressed the desire to have additional hours of work in their present job or to have an additional job, or to have a new job with longer hours of work.
The number of employed persons aged 15 years and over in August 2023 increased to 48.07 million from 47.87 million a year earlier. This translated into 95.6 percent employment rate, higher than the reported employment rate in August 2022 and July 2023 at 94.7 percent and 95.2 percent, respectively.
Total employment increased 203,000 in the agriculture and industry sectors.
Mapa said the labor force participation rate (LFPR) in August reached 64.7 percent, lower than 66.1 percent a year ago, but higher than 60.1 percent in July 2023.
NEDA underscored the Marcos administration’s commitment to generating high-quality and high-paying job opportunities for workers.
NEDA said that apart from the decline in underemployment, several other indicators pointed to an accompanying increase in the quality of employment, including the increase in wage and salary, and full-time employment, and the decline in vulnerable and part-time employment.
“However, much remains to be done as the number of middle- and high-skilled occupations decreased (-354,000), while low-skilled occupations increased (+551,000) compared to the previous year,” NEDA said.
NEDA Secretary Arsenio Balisacan said the government would continue its efforts to create better job opportunities for workers in the country.
“To raise the quality of employment further, the Marcos administration is committed to exerting all efforts to shape an attractive business climate for investors who have the resources needed to bring in high-quality and high-paying jobs,” he said.
Balisacan cited recent developments such as the Senate’s approval of the Public-Private Partnership (PPP) Act and the launch of the National Innovation Agenda and Strategy Document (NIASD) 2023-2032 that were expected to open greater opportunities for the Philippine labor market.
Passed by the Senate of the Philippines after its third and final reading on Sept. 25, 2023, the PPP Act aims to establish a stable and predictable environment for collaboration between the public and private sectors by reducing transaction costs and improving the ease of doing business for PPPs.
The NIASD 2023-2032, approved by the National Innovation Council chaired by the President on June 30, and launched on Sept. 27, 2023, contains strategies to improve innovation governance in the country, including capacitating innovation actors with the necessary resources and skills.
“The PPP Act is a welcome development for investors as it clarifies long-standing ambiguities that have hindered the implementation of several projects that are expected to create better job opportunities. Meanwhile, the NIASD will serve as the government’s blueprint for establishing a dynamic innovation ecosystem, comprising a Filipino workforce equipped with 21st century skills to enhance their employability,” said Balisacan.