Unemployment, underemployment figures worsen

More Filipinos are looking for sources of income or another livelihood as unemployment and underemployment rates increased in July amid persistent inflation, the Philippine Statistics Authority said on Friday.

The PSA Labor Force Survey showed that the unemployment rate in the Philippines rose to 4.8 percent in July 2023, representing 2.27 million unemployed Filipinos nationwide, up from the 4.5 percent recorded in April 2023 (2.26 million unemployed).

PSA explained that there was a decrease of 2.8 million in the employment rate year-on-year. Of the number, 1.79 million Filipinos switched from working outside the home to doing household work.

"They might be taking care of a sibling or child in addition to doing household chores. That's where they are. They are outside of the labor force," PSA head and national statistician Dennis Mapa said.

The industries that shed the most jobs included the wholesale and retail trade, agriculture and forestry, public administration and defense, arts, entertainment and recreation and real estate.

The PSA survey showed that 7.1 million Filipino workers (15.9 percent) considered themselves "underemployed" and needed a second job to augment their income. Some wanted more hours at their current jobs or new jobs with more hours.

PSA's underemployment figure for July was higher than the 13.8 percent in the same period last year and the 12.0 percent in June 2023. It was the highest underemployment rate since November 2021, reaching 16.6 percent.

Notably, the number of "invisible underemployed" individuals who are already putting in more than 40 hours a week but still feel the need to earn more money has climbed the highest.

"The significant addition is in the invisible underemployment. It added 1.25 million more workers," Mapa said. "They feel that they need extra hours or a new job because their income is not enough."