Unemployment rate improves to 3.9% in May

The country's unemployment rate declined to 3.9 percent in May from the 4.1 percent recorded in the same month last year as more Filipinos obtained jobs in wholesale and retail trade and agriculture.

The Philippine Statistics Authority on Tuesday reported jobless Filipinos decreased to 2.03 million from 2.11 million year-on-year.

Given the new data, the Department of Economy, Planning, and Development (DEPDev) said the Philippines’ unemployment level emerged better than China's 5 percent and India's 5.6 percent.

However, among the Asian countries, DEPDev said Malaysia and Vietnam posted lower unemployment rates of 3 percent and 2.2 percent, respectively.  

The local employment rate improved to 96.1 percent from 95.9 percent. This represented 1.42 million additional workers, increasing the total number of employed Filipinos to 50.29 million.

The wholesale and retail trade posted the highest number of additional workers at 489,000. This was followed by agriculture and forestry which employed 469,000 more individuals and administrative and support services which registered 371,000 new employees.

"More Filipinos were employed in corn and rice farming to help accomplish tasks during the harvest season," said National Statistician and Civil Registrar General Claire Dennis Mapa.

He said the employment rate increased as job applicants surged to 52.32 million in May, the highest since April 2005.

"That was a significant growth in the labor force. This means many Filipinos secured full-time jobs," Mapa said.

"We welcome this development in labor force participation because it indicates a healthy and competitive Philippine labor market. Generally, a larger workforce can lead to increased economic output as more people contribute to the economy,” said DEPDev Secretary Arsenio Balisacan.

However, manufacturing posted the biggest decline in employees at 374,000."Manufacturing of some products slowed, including plastic products," Mapa said.

National statistics showed the volume of production for plastics declined further by 8.4 percent from 5.3 percent. Contractions of more than 6 percent were also seen in textiles, machinery, beverages, and refined petroleum.

Other industries with fewer workers included construction which lost 298,000 employees and mining and quarrying which posted a decline of 82,000 workers. "The decline in construction workers could be linked to the suspension of construction activities due to the rainy season. Most of these activities were being done for projects of private companies," Mapa said.

The underemployed or those seeking more than 40 hours of work per week increased as the underemployment rate worsened to 13.1 percent from 9.9 percent year-on-year. However, compared to April, the new level improved from 14.6 percent.

"More part-time workers seeking extra work hours cited variable working schedules or the nature of their work.  Likewise, more workers mentioned holidays as their reason for working fewer than 40 hours," DEPDev said in a statement on Tuesday.

DEPDev said it will release this month the revised Philippine Development Plan 2023-2028 which contains new strategies for creating jobs and skills development that will help Filipinos navigate global uncertainties.

Balisacan said upskilling programs will tackle advanced artificial intelligence and promote apprenticeships at private companies in implementing the Enterprise-Based Education and Training Framework Act and the Expanded Tertiary Education Equivalency and Accreditation Program.