November 8, 2023 – The National Economic and Development Authority (NEDA) reiterated the government’s objective of pursuing high-quality job generation for Filipinos as labor market indicators continue to improve.
The Philippine Statistics Authority (PSA) reported today that the unemployment rate in September 2023 dropped to 4.5 percent, which is lower than the 5.0 percent recorded in the same month of the previous year. This represents a year-on-year decrease of 234,000 unemployed individuals.
Similarly, the underemployment rate saw a significant decrease to 10.7 percent in September 2023, down from the 15.4 percent posted in September 2022. This decrease is equivalent to 2.2 million fewer underemployed individuals.
“The government is committed to improving the investment climate of the country to attract businesses that generate high-quality employment. We will continue to pursue enhancements to existing policies to address concerns in investments, particularly in infrastructure development in areas outside the National Capital Region,” said NEDA Secretary Arsenio M. Balisacan.
Overall, the employment rate in the country was 95.5 percent in September 2023, which was higher than the 95.0 percent rate in September 2022. In terms of magnitude, employment reached 47.7 million in September 2023, which is 83,000 higher than the same period last year.
Full-time employment was also higher by 1.6 million compared to the previous year. Moreover, the proportion of workers in middle- and high-skill occupations increased to 57.3 percent (from 57.1% in September 2022) and 14.7 percent (from 14.2% in September 2022), respectively.
However, employment losses were observed in the manufacturing, wholesale & retail trade, and agriculture & forestry. The manufacturing sector lost an estimated 888,000 jobs, the wholesale & retail trade sector lost 722,000 jobs, while the agriculture & forestry sector lost 649,000 jobs. Adverse weather conditions, along with increased input and borrowing costs, resulted in job losses in the wholesale & retail trade and agriculture sectors.
In addition, the PSA noted a drop in the labor force participation rate (LFPR) among women. The agency reported a female LFPR of 53.4 percent in September 2023, which is lower than the 54.8 percent recorded during the same period last year. Household duties were among the main causes for this decrease.
Balisacan said that the national government will address these issues by building the resilience of the economy.
“In the coming months, the agriculture sector will likely be adversely affected by the strong El Niño. Guided by the El Niño National Action Plan (NAP), the government will implement more programs to develop a more resilient agriculture sector. This will help minimize employment losses in the sector,” he added.
Facilitating digitalization and promoting innovation in business, especially in MSMEs will open up more opportunities for high-quality and high-paying jobs for Filipinos.
“This will be supported by expanding training and re-skilling programs for workers to meet the needs of these innovative business,” Balisacan said.
Lastly, Balisacan states that the government is making efforts to address the declining labor force participation rate among women.
“To further reduce barriers to workforce participation, we will continue to promote programs that encourage the adoption of wider alternative work arrangements, allowing people to remain productive from the comfort of their own homes,” explains Balisacan.
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