Jobless rate spikes to 3-year high in July

MANILA, Philippines, September 13 ------ The unemployment rate in July climbed to its highest level in almost three years due to the series of typhoons that hit the country. In a press conference, National Statistician Dennis Mapa said preliminary results of the Labor Force Survey of the Philippine Statistics Authority (PSA) showed that the unemployment rate rose to 5.3 percent in July from 3.7 percent in June and 4.7 percent in the same month last year.

Mapa said the July unemployment rate is the highest since it hit the same level in August 2022. There were 2.59 million jobless Filipinos in July, up from the previous month’s 1.95 million and 2.38 million in July 2024. The employment rate dropped to 94.7 percent in July from 96.3 percent in the previous month and 95.3 percent in the same month last year.

In terms of magnitude, the number of employed Filipinos decreased to 46.05 million in July from 50.47 million in June and 47.68 million in July 2024. The underemployment rate rose to 14.8 percent in July from the previous month’s 11.4 percent and 12.1 percent in July last year. An estimated 6.8 million Filipinos were underemployed or expressed desire to have additional hours of work or an additional job in July this year, higher than the previous month’s 5.76 million and 5.77 million in July 2024.

The country’s labor force participation rate slid to 60.7 percent in July from 65.7 percent in June and 63.5 percent in July last year. This is equivalent to 48.64 million Filipinos who were in the labor force in July, lower than the 52.42 million in the previous month and 50.06 million in July 2024. “In the month of July, we were hit by four typhoons, and it affected a substantial number of provinces and had an impact on our labor market,” Mapa said.

According to Mapa, this would explain the decline in labor force participation and in employment. Sectors that saw the biggest year-on-year declines in employment in July were agriculture and forestry (-1.4 million), wholesale and retail trade (-897,000), as well as fishing and aquaculture (-173,000). The Department of Economy, Planning and Development (DEPDev) said the latest data shows the need to step up government efforts to enhance climate resilience and improve workforce agility to future-proof the country’s labor market. “The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts. We are also fully committed to enhancing employability, expanding labor market programs and collaborating with key stakeholders to future-proof the Filipino workforce,” DEPDev Secretary Arsenio Balisacan said.

In response to the decline in agricultural employment, Balisacan said the government’s policies must focus on improving productivity and resilience through modernized production methods, climate-smart practices and stronger market linkages. “This must be complemented by expanded rural infrastructure, improved digital connectivity and increased access to training opportunities,” he said.

The government is also accelerating the implementation of the Trabaho Para sa Bayan Plan, which serves as the country’s labor market masterplan. For Balisacan, investments in high-value sectors, aligning training and reskilling programs with emerging industry demands, as well as promoting flexible yet secure work arrangements are key to the effective implementation of the plan. The DEPDev chief also stressed the importance of reducing the school-to-work transition period and enhancing youth employability. “The Marcos administration remains focused on addressing job-skills mismatch and preparing the workforce for the demands of a rapidly evolving economic environment,” Balisacan said. For its part, labor group Sentro ng mga Nagkakaisa at Progresibong Manggagawa said the latest data shows the need to revamp the economic team and redirect the economy towards industrialization, innovation and genuine job creation.

Source: philstar.com