The Philippines’ unemployment rate rose in July as more Filipinos entered the labor force, the Philippine Statistics Authority (PSA) said Friday.
Data from the PSA showed that the jobless rate was at 4.7 percent in July, up from 3.1 percent in June. This, however, was lower than 4.9 percent registered in the same month last year.
This brought the seven-month unemployment rate to 4.4 percent, meeting the nation’s target range of 4.4 percent to 4.7 percent for the year, according to the National Economic and Development Authority (NEDA).
NEDA said the low unemployment rate is comparable to those of major Asian economies and is even better than India’s rate 7.9 percent and China’s 5.1 percent.
The PSA said that in terms of magnitude, the total number of unemployed individuals increased to 2.38 million in July from 2.29 million a year ago.
The PSA said 3.1 million more Filipinos gained employment year-on-year, raising the total number of employed individuals to 47.7 million as of July 2024.
Underemployment also dropped to 12.1 percent in July 2024 from 15.9 percent a year ago, translating into 1.3 million more Filipinos securing better-quality jobs.
The labor force participation rate rose to 63.5 percent in July from 60 percent a year earlier, indicating that over 3.2 million more Filipinos entered the labor force.
Finance Secretary Ralph Recto said the Philippines’ labor force remains strong with all key indicators above pre-pandemic levels and that the decelerating inflation rate is expected to stimulate jobs in the wholesale and retail trade sectors through increased discretionary spending.
“The continuous decline in the country’s inflation rate will benefit businesses, especially those in the wholesale and retail sectors, as this means our people will have more money to spend on non-essential items. Meanwhile, the increase in jobs in the agriculture sector signals its recovery from the effects of El Niño,” Recto said.
NEDA Secretary Arsenio Balisacan said the government implemented strategies to support the Filipino workforce.
These strategies include attracting job-generating investments, scaling up social and physical infrastructure to enhance employment prospects, and implementing reskilling and upskilling programs to improve job security and adaptability.
“While we welcome the continuing positive developments in our nation’s labor market, our work certainly does not end there. For its part, NEDA is committed to mobilizing a whole-of-government approach to secure job-generating investments nationwide,” Balisacan said.
He said NEDA is finalizing the Trabaho Para sa Bayan Master Plan, which is envisioned as the nation’s comprehensive and strategic framework for enhancing job opportunities and work skills for Filipinos.
Balisacan said fast-tracking infrastructure development in energy, logistics and both physical and digital connectivity is essential for overcoming constraints to growth and business expansion.
“The swift enactment and implementation of the Konektadong Pinoy Bill, and the expansion of upskilling programs are crucial for advancing the country’s digital transformation and harnessing opportunities presented by cutting-edge innovation,” he said.
He said the country remains on track toward increasing the percentage of wage and salaried workers in private establishments, which currently stands at 51 percent, within the PDP target range of 50.9 to 51.5 percent for 2024.
