The Philippines’ labor force continues to strengthen as inflation eases, opening new job opportunities in key sectors, particularly in wholesale and retail trade.
According to Finance Secretary Ralph Recto, declining inflation rates are poised to boost discretionary spending, stimulating employment in these sectors.
“The continuous decline in the country’s inflation rate will benefit businesses, especially those in the wholesale and retail sectors, as this means our people will have more money to spend on non-essential items,” Recto said.
The wholesale and retail trade sectors saw significant growth in July 2024, adding 1.07 million jobs.
The agriculture and forestry sub-sector followed, contributing 936,000 new jobs, signaling recovery from the effects of the El Niño weather phenomenon.
Recto emphasized that these employment gains are essential for the country’s economic progress.
“Lahat ng ito ay magandang balita para sa patuloy na pag-unlad ng ekonomiya at sa ating layuning maiangat ang walong milyong Pilipino mula sa kahirapan bago matapos ang termino ng Pangulo,” he added.
(All of this is good news for the continued development of the economy and for our goal of lifting eight million Filipinos out of poverty before the President’s term ends.)
These developments have driven the country’s unemployment rate down to 4.7% in July 2024, from 4.9% a year earlier. This marks a notable improvement from the pre-pandemic unemployment rate of 5.1% recorded in 2019.
Underemployment also dropped to 12.1%, down from 15.9% in July 2023.
The July 2024 data shows that wage and salary workers comprised 63.8% of the labor force, with private establishments employing the majority (78.3%).
“This shows that private businesses are the backbone of our labor market,” Recto noted. For every six jobs in the private sector, there is only one in government, highlighting the critical role of private enterprises in job creation.
To sustain this momentum, the government is ramping up its efforts to create a more supportive environment for businesses through investment-enhancing laws and public-private partnerships.
Amendments to the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act are expected to bring more foreign investments and employment opportunities.
The administration is also pushing the Build Better More program, which aims to generate more jobs in construction while creating technical opportunities for engineers, architects, and other skilled professionals.
