(UPDATES) UNEMPLOYMENT worsened in July with new graduates having failed to find jobs, the Philippine Statistics Authority reported on Friday.
The country’s jobless rate spiked to 4.7 percent, the highest since the year-earlier 4.9 percent, from 3.1 percent in June.
This was equivalent to 2.38 million unemployed Filipinos, 760,000 more than June’s 1.62 million and July 2023’s 2.29 million, reflecting a year-on-year increase of 90,000 unemployed individuals.
National Statistician Claire Dennis Mapa said the rise came as those who graduated from college or senior high school sought work.
“We noticed in July that college and K to 12 graduates entered the labor force, but some of them couldn’t find jobs,” he explained.
Youth unemployment contributed 43 percent to the total jobless individuals in July, Mapa added.
Job quality, however, was stable with underemployment — which counts those looking for more work or an extra job — stayed at 12.1 percent compared to June. It was also lower than the 15.9 percent recorded in July 2023.
The number of the underemployed was estimated to have hit 5.78 million, lower than June’s 6.08 million and the year-earlier 7.07 million.
The labor force participation rate — a measure of the number of working-age Filipinos who are actively engaged in the labor market — slipped to 63.5 percent from 66.0 percent in June. It was, however, higher than the 60.0 percent posted in July last year.
This was equivalent to 50.07 million Filipinos ages 15 years and over who were in the labor force.
The employment rate, meanwhile, dropped to 95.3 percent from 96.9 percent in June but was slightly higher than the 95.1 percent in the same month last year.
The number of individuals with jobs totaled 47.70 million, down from June’s 50.28 million but higher than July 2023’s 44.56 million.
The services sector continued to account for the bulk of employment with a share of 60.8 percent. Agriculture and industry took up 21.2 percent and 18.0 percent, respectively.
Wage and salary workers made up 63.8 percent of all the employed, followed by self-employed workers without paid employees (28.2 percent), and unpaid family workers (5.7 percent).
Employers in family-operated farms or businesses had the smallest share at 2.4 percent.
Socioeconomic Planning Secretary Arsenio Balisacan said the government was working to improve the labor situation by attracting job-creating investments, improving social and physical infrastructure, and offering reskilling and upskilling programs for better job security.
The National Economic and Development Authority which he heads was said to be finalizing the Trabaho Para sa Bayan Master Plan, a framework aimed at improving job opportunities and skills for Filipinos.
“The swift enactment and implementation of the Konektadong Pinoy Bill, and the expansion of upskilling programs are crucial for advancing the country’s digital transformation and harnessing opportunities presented by cutting-edge innovation,” Balisacan added.
“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,” he continued.
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