Employment in the Philippines showed positive growth in May 2024, with the unemployment rate decreasing to 4.1% from 4.3% in May 2023. This trend indicates an improving job market, with more Filipinos securing employment across various sectors.
A Closer Look at the Numbers
- Employment Rate: The employment rate increased to 95.9% in May 2024, up from 95.7% the previous year.
- Labor Force Participation Rate: The LFPR stood at 64.8%, representing about 50.97 million Filipinos aged 15 and over who were part of the labor force.
- Unemployment Rate: The number of unemployed individuals decreased to 2.11 million in May 2024, down from 2.17 million in May 2023.
- Underemployment Rate: The underemployment rate fell to 9.9%, the lowest level recorded since 2005.
Sectoral Contributions to Employment Growth
The National Economic and Development Authority (NEDA) attributes the rise in employment to significant expansions in the industry and services sectors.
Notably, the construction and manufacturing subsectors experienced substantial growth due to the implementation of flagship programs under the Marcos administration.
- Industry Sector: Added 1.2 million jobs.
- Services Sector: Created 982,000 new jobs.
- Construction Subsector: Increased by 378,000 jobs.
- Manufacturing Subsector: Grew by 285,000 jobs.
- Accommodation and Food Services: Added 638,000 jobs.
- Transportation and Storage: Increased by 289,000 jobs.
- Other Services: Added 200,000 jobs.
NEDA Secretary Arsenio Balisacan emphasized the role of government infrastructure projects in driving demand for construction workers and materials.
Programs like the Pambansang Pabahay Para sa Pilipino have significantly boosted job opportunities in these areas.
Challenges and Setbacks
While several sectors experienced growth, the agriculture sector faced challenges due to environmental factors and geopolitical issues.
- Agriculture Sector: Lost 1.6 million jobs due to El Niño and Typhoon Aghon, as well as geopolitical tensions in the West Philippine Sea.
Balisacan highlighted the need for disaster preparedness and support for workers affected by natural disasters, particularly in the agriculture sector. This includes enhancing meteorological monitoring and providing livelihood support during adverse weather conditions.
Future Outlook and Initiatives
The PSA report also indicated notable increases in middle-skilled employment, wage and salaried employment, and full-time jobs. The underemployment rate’s decline suggests a trend towards better job quality and satisfaction among workers.
- Middle-Skilled Employment: Increased by 2.0 million.
- Wage and Salaried Employment: Rose by 1.5 million, with 1.3 million in private establishments.
- Full-Time Jobs: Increased by 2.8 million.
Balisacan stressed the importance of continuing efforts to boost investments and implement technological and innovative reforms to enhance productivity and create high-quality employment opportunities.
Digital technologies are seen as crucial in improving public sector employment facilitation services, training programs, and skills forecasting.
- National AI Strategy Roadmap 2.0: Expected to fast-track AI development, expand upskilling programs, and increase the adoption of AI-enabled processes in the business sector.
- Trabaho Para sa Bayan (TPB) Plan: A blueprint for comprehensive employment generation and recovery, aimed at sustaining the country’s robust labor market trends.
Public consultations for the TPB Plan are ongoing across all regions, involving both employers and workers in addressing challenges and identifying effective solutions.
Key Takeaways
The Philippines’ employment rate improvement in May 2024 is a positive sign for the country’s labor market.
With continued government support and strategic initiatives, the nation aims to sustain this growth and address sectoral challenges, ensuring better job quality and opportunities for its workforce.
Sources: THX News, 9CV9, HR Asia & Philippine News Agency.
