Jobless rate rises to 4.7 percent in July

September 7, 2024 | 12:00am

MANILA, Philippines — The country’s unemployment rate rose to 4.7 percent in July, the highest in a year as more young Filipinos joined the labor force but were unable to find jobs, according to the Philippine Statistics Authority (PSA).

Preliminary results of the Labor Force Survey released yesterday by the PSA showed that the latest unemployment rate was the highest since the 4.9 percent in the same period last year, translating to 2.38 million jobless Filipinos.

This is also higher than the 3.1 percent unemployment rate in June.

National Statistician Dennis Mapa attributed the higher unemployment rate to the increase in the number of young people or those in the 15 to 24 age group who were jobless.

“We saw in July that those who graduated from college or K-12 entered the labor market, but some of them could not find jobs,” Mapa said.

He said the 15 to 24 age group accounted for 43 percent or 1.02 million of those unemployed in July.

In July 2023, the same age group represented 37.1 percent or 850,000 of the total unemployment figure.

Mapa also cited the impact of unfavorable weather conditions on demand for jobs as a reason for the higher unemployment rate.

PSA data showed the employment rate declined to 95.3 percent in July from 96.9 percent in the previous month, but went up from 95.1 percent in July 2023.

An estimated 47.7 million Filipinos were employed in July, lower than the 50.28 million in June, but higher than the 44.56 million in July 2023. 

Meanwhile, the underemployment rate remained at 12.1 percent in July from the previous month and declined from 15.9 percent in July 2023.

There were 5.78 million underemployed people or those wanting to have additional hours of work or an additional job in July, down from the previous month’s 6.08 million and 7.07 million in July last year.

Mapa said the latest jobs data showed that the quality of jobs in the country is improving.

The country’s labor force participation rate in July was at 63.5 percent, down from 66 percent in the previous month, but higher than the 60 percent in July 2023.

This translates to a total of 50.07 million Filipinos aged 15 years and older who were in the labor force in July, lower than the 51.9 million in June, but higher than the 46.85 million in July 2023.

Commenting on the latest data, the National Economic and Development Authority (NEDA) said the year-to-date unemployment rate of 4.4 percent is within the government’s target range of 4.4 to 4.7 percent for this year.

In addition, NEDA said the country remains on track toward increasing the percentage of wage and salaried workers in private establishments, which currently stands at 51 percent, within the target range of 50.9 to 51.5 percent for 2024 under the Philippine Development Plan (PDP) or overall development blueprint.

NEDA Secretary Arsenio Balisacan said the agency is committed to doing its part in attracting more investments that will create jobs for the Filipino workforce.

 He also said NEDA is finalizing the Trabaho para sa Bayan Master Plan, which will serve as the comprehensive and strategic framework for enhancing job opportunities and work skills of the Filipino talent pool.

For the NEDA, the swift enactment and implementation of the Konektadong Pinoy Bill and the expansion of upskilling programs are needed to advance the country’s digital transformation and take advantage of opportunities created by innovation.

“The Marcos administration is tirelessly working to attract high-quality investments to the country, enhancing the business climate and ensuring that all investment pledges are fulfilled. This, along with efforts to prepare the labor force for market absorption, gives us confidence that we will achieve our PDP targets,” Balisacan said.