Jobless rate eases to 3.8% in September

MANILA, Philippines, November 8 ------ Unemployment declined in September from the previous month, but the quality of jobs deteriorated, according to the Philippine Statistics Authority (PSA). In a press conference, National Statistician Dennis Mapa said the country’s unemployment rate dipped to 3.8 percent in September from the previous month’s 3.9 percent but inched up from 3.7 percent in the same month last year.

This translated to 1.96 million jobless Filipinos in September, down from 2.03 million in August, but up from 1.89 million in September 2024. These figures were based on the results of the PSA’s Labor Force Survey (LFS). PSA data showed the country’s employment rate rose slightly to 96.2 percent in September from 96.1 percent in the previous month, but down from 96.3 percent in September last year.

An estimated 49.60 million Filipinos were employed in September, lower than the previous month’s 50.10 million and 49.87 million in September 2024. But job quality worsened as the underemployment rate rose to 11.1 percent in September from the previous month’s 10.7 percent. However, the September underemployment rate declined from 11.9 percent in the same month last year.

The number of Filipinos who expressed desire for an additional job or work hours increased to 5.52 million in September from 5.38 million in the month prior but slid from 5.94 million in September 2024. Mapa attributed the increase in underemployment to the higher number of underemployed in the construction sector, particularly construction of buildings. He said the ongoing probe on the flood control controversy may have affected employment in the sector. “Because we have an investigation, it’s possible this is partly the impact. Although in the LFS, we are not able to tag sectors, whether they are in private construction or in government construction,” he said.

Construction was also among the sectors with the biggest month-on-month decline in employment in September, shedding 308,000 jobs. Other sectors which saw the largest month-on-month drop in employment in September were other service activities (-498,000), transportation and storage (-247,000), financial and insurance activities (-105,000) and administrative and support service activities (-68,000). On the other hand, the following posted the highest month-on-month increase in jobs in September: education (223,000), agriculture and forestry (129,000), human health and social work activities (117,000), mining and quarrying (113,000), and accommodation and food service activities (85,000).

PSA data also showed that the labor force participation rate went down to 64.5 percent in September from the previous month’s 65.1 percent and 65.7 percent in September last year. “Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,” Department of Economy, Planning and Development Secretary Arsenio Balisacan said.

To build and strengthen the resilience of the labor market, he said the government is focused on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth. The recent passage of the Lifelong Learning Development Framework Act, which establishes a system for continuous and accessible learning for the workforce, is expected to support efforts to strengthen the workforce. “Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units, which will play a key role in promoting lifelong learning,” Balisacan said.

For the rest of the year, Employers Confederation of the Philippines President Sergio Ortiz-Luis Jr. said in a telephone interview that employment is expected to go up as firms increase hiring activity in preparation for the holiday season. However, the United States’ move to grant zero tariff for certain goods from select Southeast Asian countries is seen as a challenge for the Philippines, which did not get a similar arrangement. “We have not seen the effect. Hopefully, it won’t have a big effect,” Ortiz-Luis said.

Source: philstar.com