Joblessness in October lowest in 20 years

The country's jobless rate fell to its lowest level in almost 20 years in October as local employers hired more staff for the holiday season, the Philippine Statistics Authority said on Thursday.

In a press briefing, PSA chief and National Statistician Claire Dennis Mapa said around 2.09 million Filipinos were unemployed in October, the lowest unemployment rate since April 2005.

The number translated to a 4.2 percent unemployment rate, lower than the 4.5 percent rate from the previous month.

Mapa said that the most recent figure was lower than the 2.26 million jobless Pinoys from September and a decrease from the 2.24 million unemployed Filipinos in October 2022.

Mapa attributed the rise in employment to "ber months," during which the majority of businesses and retail stores hire more staff.

"October, being the beginning of the last quarter, we always see that during the holiday season, we experience additional economic activities, and most of the workforce is absorbed into employment opportunities," Mapa said.

"Usually, during those 'ber' months, we see a lot of economic activities… This is where we see the source of the increase in employment," Mapa added.

In October, these sectors saw notable employment growth based on quarter-on-quarter data: wholesale and retail trade plus vehicle repair (1.46 million); Agriculture and forestry (1.09 million); accommodation and food services (236,000); public administration, defense, and social security (211,000); and education (157,000).

Also worth noting is that most employment generated is middle (+334,000) and high-skill occupations (+897,000) due to the expansion in tourism-related and Information Technology Business Process Outsourcing (IT-BPO) sectors.

Underemployment rate up

However, more Filipinos looked for part-time work in October to supplement their income, suggesting a drop in the caliber of jobs throughout the month.

Mapa said the underemployed people increased from 5.11 million in September to 5.6 million in October.

This increased the underemployment rate, which refers to the percentage of employed individuals seeking additional work hours, from 10.7 percent to 11.7 percent over the previous month.

In a separate statement, the National Economic and Development Authority (NEDA) emphasized the significance of maintaining efforts to build an environment supporting high-quality jobs while increasing possibilities for people to upskill or reskill.

NEDA Secretary Arsenio Balisacan anticipates more improvements in the Philippine labor market after President Ferdinand Marcos Jr. signed Republic Act No. 11966, also known as the Public-Private Partnership (PPP) Code, earlier this month.

"We can make the labor market more inclusive by attracting more investments, particularly those that bring in new and better technology. We also need to expand and enhance learning opportunities to equip Filipinos for future jobs," Balisacan said.

"The passage of the PPP Code is just one of several recent reforms that have made the Philippines more attractive to foreign investors. It provides the government with a stronger framework for attracting investments, which in turn creates employment opportunities for Filipino workers in various critical growth areas, including infrastructure," Balisacan added.