MANILA, Philippines: The unemployment rate in the Philippines experienced a significant decrease of 4.2 percent in October compared to the previous month, according to the Philippine Statistics Authority (PSA). This is the lowest unemployment rate recorded since April 2005.
In September, the jobless rate stood at 4.5 percent, while it was 4.8 percent during the same period last year.
The latest data reveals that there are 2.09 million unemployed Filipinos, which is 17,000 fewer than the figure in September (2.26 million). It is also lower than the 2.24 million recorded in October last year, indicating a year-on-year decrease of 15,000 unemployed individuals.
On the other hand, underemployment, which includes individuals seeking additional work or an extra job, increased to 11.7 percent in October from 10.7 percent in the previous month. However, it is still lower than the 14.2 percent recorded in the same month last year.
The number of underemployed individuals reached 5.60 million, consisting of individuals who expressed their desire to have more working hours in their current job, additional jobs, or a new job with longer hours.
The PSA also reported a rise in the employment rate, which reached 95.8 percent in October compared to 95.5 percent in September and the same month of the previous year.
In October 2023, the number of employed individuals reached 47.80 million, a slight increase from 47.67 million in September. Meanwhile, the figure for employed individuals in October 2022 was 47.06 million.
When it comes to the distribution of employment, the services sector continued to dominate the labor market in October, accounting for 60.1 percent of the total employed persons.
However, the country’s Labor Force Participation Rate (LFPR) in October 2023 showed a decline to 63.9 percent from 64.1 percent in September and the same month last year.
These statistics provide valuable insights into the current state of employment in the Philippines. The decrease in the unemployment rate is a positive sign, indicating that more individuals have found jobs or have transitioned from being unemployed to employed.
While the underemployment rate has increased slightly, it is still lower than the previous year, suggesting that more individuals are finding opportunities for additional work or better job conditions.
The rise in the employment rate signifies a growing workforce and a healthier job market. With an increase in the number of employed individuals, there is a positive impact on the economy, as more people contribute to productivity and consumption.
It is worth noting that the services sector continues to be a dominant force in the labor market. This sector encompasses a wide range of industries such as retail, hospitality, finance, and business process outsourcing, which play a crucial role in the country’s economic growth.
Despite the overall positive trends, the decline in the Labor Force Participation Rate raises some concerns. A lower LFPR indicates that fewer individuals are actively participating in the labor force, which could be attributed to various factors such as discouragement, retirement, or other socio-economic conditions.
Efforts should be made to address this decline and ensure that individuals are encouraged to actively participate in the labor force. This can be achieved through initiatives that promote inclusive and sustainable economic growth, job creation, and skills development.
Overall, the recent statistics on unemployment, underemployment, and employment in the Philippines provide a comprehensive picture of the current labor market. While there are positive trends, there are also areas that require attention and action to foster a more inclusive and thriving workforce.
Source: The Manila Times
