JULY 8, 2024 – As the country’s unemployment rate continues to drop, the Philippine government remains committed to invigorating investments and implementing key reforms to sustain the positive momentum of the labor market and create more quality jobs for Filipinos, the National Economic and Development Authority (NEDA) stated on Monday (July 8).

As reported by the Philippines Statistics Authority, the May 2024 Labor Force Survey showed that the country’s unemployment rate dropped to 4.1 percent, a decrease from 4.3 percent in the same month last year.

The increase in the country’s total employment for May 2024, reaching 48.9 million jobs—an increase of 605,000 from the previous year—was primarily driven by the expansion in the industry (+1.2 million) and services (+982,000) sectors.

The construction and manufacturing subsectors also grew significantly, adding 745,000 and 347,000 jobs, respectively. This growth can be attributed to the implementation of several flagship programs and projects under the Marcos administration.

“The government’s massive infrastructure drive and the implementation of the Pambansang Pabahay Para sa Pilipino (4PH) program have led to a rise in demand for construction workers and materials, resulting in a significant increase in job opportunities in these sectors,” said NEDA Secretary Arsenio M. Balisacan.

On the other hand, the agriculture sector lost 1.6 million jobs due to the impact of El Niño and Typhoon Aghon, while geopolitical tensions in the West Philippine Sea negatively affected fishing activities in the area.

Balisacan underscored the importance of disaster preparedness and support for workers affected by disasters and weather disturbances, particularly in agriculture. This includes improving meteorological monitoring and forecasting capabilities and providing livelihood support programs during disasters.

Meanwhile, there was a significant increase in high-quality jobs, as underemployment decreased to 9.9 percent in May 2024 from 11.7 percent in May 2023—the lowest since 2005. The survey results also showed an increase in middle-skilled employment by 2.0 million, wage and salaried employment by 1.5 million (including 1.3 million in private establishments), and full-time jobs by 2.8 million. Moreover, there was a notable decrease in the number of Filipinos working part-time (1.7 million) and in vulnerable employment (763,000) compared to the previous year.

“We must persist in our efforts to boost investments and implement key technological and innovative reforms to enhance productivity and create more high-quality employment opportunities,” said Balisacan.

The country’s chief economic planner also highlighted the role of digital technologies in enhancing public sector employment facilitation services and training programs and improving skills forecasting in policy planning and programming.

The recent launch of the National Artificial Intelligence (AI) Strategy Roadmap 2.0 is expected to fast-track AI development in the country, expand upskilling programs to equip the workforce and increase the uptake of AI-enabled processes and solutions by the business sector.

To sustain the country’s robust labor market trend and harness this development toward generating high-quality jobs amid a fast-changing work environment, NEDA is currently crafting the Trabaho Para sa Bayan (TPB) Plan.

“Since June, we have been conducting public consultations for the TPB Plan across all regions in the country. We want to involve both employers and workers in understanding how various changes in the economy, society, and the environment have been affecting the world of work and how the different labor market actors have been adjusting to the changes. The key is to identify effective and efficient solutions to their challenges and may continue to encounter,” said Balisacan.

The TPB Plan will serve as the country’s blueprint for comprehensive employment generation and recovery. It will outline robust employment policies with strong implementation measures and concrete targets. NEDA is committed to finalizing this plan by the end of the year.

 

-END-