The Philippine government reaffirms its commitment to achieve a high-quality labor market in the country as unemployment and underemployment rates hit their second lowest records since April 2005, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority (PSA) reported today that the country’s unemployment rate improved to 4.3 percent in May 2023 from 6.0 percent registered in the same period last year.
Also, the underemployment rate went down to 11.7 percent from 14.5 percent in May 2022, equivalent to 1.0 million fewer underemployed persons. It also translates to 5.7 million underemployed out of 48.3 million employed persons. This is the second lowest underemployment rate since April 2005.
The labor force participation rate (LFPR) rose to 65.3 percent, up from 64.0 percent in May 2022.
Youth unemployment rate also improved to 10.6 percent from the 12.1 percent recorded in the same period last year. The youth underemployment rate was also lower at 11.0 percent against the 11.6 percent in May last year.
By major sectors, Services emerged as having the largest share of employed persons at 58.8 percent. This was followed by Agriculture at 24.3 percent and Industry at 16.9 percent.
By worker classification, wage and salary workers continued to have the largest share in employment with 60.5 percent of the total employed population. This was followed by those self-employed with a 28.1 percent share in employment.
Given the favorable labor market performance, NEDA Secretary Arsenio M. Balisacan assures the public that the government will continue to push for and implement game-changing reforms to improve the country’s business investment climate, especially for foreign investors, and help in sustaining current labor market gains.
“To achieve our near and medium-term targets, it is important that the government remains committed to fostering a favorable investment climate to address critical constraints to high-quality job creation,” he said.
Moreover, Balisacan added that establishing an enabling regulatory environment to improve the ease of doing business and encourage innovation remain as top priorities to attract investors who have the technology and resources to bring in high-quality jobs.
In addition, the chief economist urges individuals to enroll in upskilling and lifelong learning programs to prepare for the jobs of the future. These programs are being offered by both government and private education and training institutions.
“We welcome partnerships with the private sector, including international organizations, to ensure that our government services, particularly with respect to employment facilitation, upskilling or retooling, and promoting workers’ protection, are on the same level with global best practices,” adds Balisacan.
The latest employment rate is a significant improvement from the 6.0 percent recorded in May 2022.
“The jobs numbers are looking good. The country’s consistently low level of unemployment is a source of optimism not only for the Philippines’ economic output, but also for gainful livelihood opportunities for the Filipino people,” Finance Secretary Benjamin E. Diokno said. (DOF/NEDA)
