Finance Secretary Ralph G. Recto expressed optimism over the 1.45 million new jobs created for Filipinos in August 2024, crediting the economic boost to lower inflation and the upcoming holiday season.
“I am very glad of the back-to-back good news. Asahan po natin na mas maraming trabaho ang magbubukas para sa ating mga kababayan dahil sa patuloy na pagbaba ng inflation rate na magpapalakas sa kita ng ating mga negosyo at bawat pamilya,” Recto said, referring to the expected surge in employment as inflation drops. The country saw inflation fall to a four-year low, encouraging business growth and consumer spending.
Recto also noted that the peak holiday season will further drive economic activity, especially in sectors like wholesale and retail trade, which are expected to benefit from increased consumer demand.
“The latest monetary policy easing due to the deceleration of inflation will also encourage further growth in consumption and investment that translate to more quality employment for Filipinos,” Recto added.
The Philippines’ labor market showed strength in August 2024, with the unemployment rate falling to 4.0%, an improvement from 4.7% in July and 4.4% in August 2023. This drop resulted in a total of 49.2 million employed Filipinos, up from 47.7 million in July 2024 and 48.1 million in August 2023. The new data represents a 1.45 million month-on-month increase in employment and a year-on-year gain of 1.08 million jobs.
Underemployment, which measures workers seeking more hours or better jobs, also improved, declining to 11.2% in August 2024 from 12.1% in July and 11.7% in August 2023.
The wholesale and retail trade sector was the top contributor to job creation in August, adding 1.15 million workers. Public administration and defense followed with 351,000 jobs, while education, transportation and storage, and other service activities contributed 209,000, 207,000, and 172,000 new jobs, respectively.
Wage and salary workers made up the majority of the workforce at 62.4%, with 76.4% employed in private establishments and 16.2% in the public sector. This growth indicates a strengthening middle class as more Filipinos secure stable, formal employment.
Looking ahead, Recto anticipates that the passage of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill will attract more investments, particularly in capital-intensive industries like business process outsourcing (BPO), information technology, construction, and healthcare.
The government’s Build, Better, More program and the Public-Private Partnership (PPP) Code are also expected to generate more technical jobs, including engineering, architecture, and consultancy roles. Additionally, Recto emphasized the importance of swiftly implementing the country’s Artificial Intelligence (AI) roadmap to equip the workforce for jobs in emerging fields.
To support these initiatives, the Department of Finance (DOF) is set to ramp up revenue collection efforts to fund programs for education, upskilling, and healthcare, helping prepare Filipinos for quality job opportunities.
With inflation easing and the holiday season approaching, Recto remains confident that the labor market will continue to grow, providing more opportunities for Filipinos in the coming months.
