The vibrant domestic labor market, coupled with the Marcos administration's initiatives to attract foreign investments, saw the country's unemployment rate decrease to 4.7% in July from 4.9% in the same month last year, according to the Philippine Statistics Authority (PSA).
The July decline brings the year-to-date unemployment rate to 4.4%, meeting the nation's target range of 4.4% to 4.7% for this year. National Statistician Dennis Mapa said, "In terms of magnitude, the total number of unemployed individuals in July 2024 was registered at 2.38 million."
According to Mapa, the Labor Force Participation Rate (LFPR) in July was estimated at 63.5%, or about 50.07 million Filipinos aged 15 years and higher who were employed or unemployed, up from 46.85 million in July last year. The employment rate slightly increased to 95.3% in July this year from 95.1% in the same month last year.
The number of employed Filipinos was estimated at 47.7 million, higher than the 44.56 million recorded in July 2023. Mapa said the major industries with the most significant increase in employment include the wholesale and retail trade (+1.07 million), agriculture and forestry (+936,000), accommodation and food service activities (+512,000), public administration and defense (+385,000), and construction (+171,000).
The number of underemployed, or those who expressed the desire to have additional hours of work in their present job, to have an extra job, or to have a new job with longer work hours, stood at 5.78 million, translating to an underemployment rate of 12.1%, down from 15.9% in July 2023.
The National Economic and Development Authority (NEDA) said in a statement that the government is prioritizing efforts to attract investments in sectors that generate high-quality jobs. NEDA said the latest labor force survey showed a vibrant labor market aligning with the targets set in the Philippine Development Plan (PDP) 2023-2028.
According to NEDA, the current unemployment rate is comparable to that of major Asian economies and is even better than India's 7.9 percent and China's 5.1 percent.
NEDA Secretary Arsenio Balisacan said the government is attracting job-generating investments, scaling up social and physical infrastructure to enhance employment prospects, and implementing reskilling and upskilling programs to improve job security and adaptability.
"While we welcome the continuing positive developments in our nation's labor market, our work certainly does not end there. For its part, NEDA is committed to mobilizing a whole-of-government approach to secure job-generating investments nationwide," Balisacan said.
NEDA is also finalizing the Trabaho Para sa Bayan Master Plan to enhance Filipinos' job opportunities and work skills. "The swift enactment and implementation of the Konektadong Pinoy Bill, and the expansion of upskilling programs are crucial for advancing the country's digital transformation and harnessing opportunities presented by cutting-edge innovation," Balisacan said.
"The Marcos administration is tirelessly working to attract high-quality investments to the country, enhancing the business climate and ensuring all investment pledges are fulfilled. This and efforts to prepare the labor force for market absorption give us confidence that we will achieve our PDP targets."
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