The country's employment gained substantially at the start of the third quarter of 2022 despite the onset of the rainy season, research showed over the weekend.

"Total employed persons hit a new record of 47.4 million in July, higher by 800,000 (or 1.7 percent) month-on-month resulting in a fall in the unemployment rate to 5.2 percent from 6 percent a month earlier," Market Call research showed.

"These positive notes arose despite an increase in the labor force participation rate to 65.2 percent from 64.8 percent in June," it added.

Likewise, employment posted a huge 13.7 percent year-on-year increase while the ranks of the unemployed dropped by 388,000 month-on-month, or 13.7 percent a month ago.

The pre-pandemic employment high was 42.9 million in the same period last year.

The service sector's gains in 11 of 13 sub-sectors more than offset the fall in jobs in agriculture (267,000) and industry (469,000), the study said.

1.5M more jobs

"The services sector added 1.5-million jobs in July as the economy opened up further, while the Department of Education removed the vaccination mandate for elementary and secondary schools," the research added.

Market Call said wholesale and retail trade, accommodation and food services (hotels and restaurants) contributed the most jobs with 941,000 and 227,000, respectively.

Public administration, financial, and arts and recreation sub-sectors also provided six-digit openings at 119,000, 122,000 and 108,000, respectively.

The decline in agricultural employment coincided with the end of the rice planting season for the second major harvest of the year.

"On the other hand, the plunge in jobs in the industry sector owed much to the rainy season going in full swing and causing construction and manufacturing sub-sectors to temporarily sideline significant numbers, mining and quarrying also suffered the same fate as it employed 145,000 fewer workers during the month," Market Call added.

Meanwhile, the country's manufacturing climbed to 51.2 in August from 50.8 in July, the 12th consecutive month of expansion (above 50), despite rising input costs and port congestion that extended operating cash cycles.

Metal products soar

The research also showed that industrial output as measured by the Volume of Production Index expanded by 2.5 percent YoY in July, an improvement from the previous three months, two of which fell into red territory while it increased by 0.7 percent in June.

Furthermore, 14 out of the 22 industry divisions increased their output year-on-year, led by manufacturers of fabricated metal products, which soared by 30.3 percent, the research shows.

"Manufacture of machinery equipment, except electrical and manufacture of wood products, followed closely with gains of 29.1 percent YoY and 28.5 percent YoY, respectively," Market Call said.

It also added that heavily weighted manufacturing of food products accelerated to a 9.7 percent YoY pace from 8.4 percent a month earlier.

On the other side of the spectrum, eight industry divisions posted lower output led by the manufacture of electrical equipment which plunged by 52.7 percent.