MANILA, Philippines — The quality of jobs in the Philippines remains wanting in November amid brutally-high inflation, despite unemployment returning to 2019 levels.
The Philippine Statistics Authority reported on Friday that the jobless rate in the country eased to 4.2%, or 2.18 million unemployed Filipinos, in November. This was slightly lower compared to the 4.4% rate in the preceding month.
Unemployment in November proved to be the lowest outturn since April 2005, when state statisticians changed the definition of joblessness.
However, the proportion of underemployed Filipinos, or those seeking longer working hours to augment their monthly income, worsened to 14.4% in November, from 14.2% in October. This was equivalent to 7.16 million underemployed persons in November versus 6.67 million recorded in the previous month.
As it is, the Philippine economy is still sailing into headwinds amid a lingering pandemic and external challenges. The Marcos Jr. administration said it was working hard to tame inflation, but the combined effects of supply chain disruptions, expensive fuel prices and a weak peso proved too much to handle.
The labor force is slowly gaining ground, as scores of Filipinos search for gainful employment, although expensive living costs remain a brutal reality for many. Data showed there were 51.88 million Filipinos aged 15 years old and above who actively sought work in November, translating to a labor force participation rate of 67.5%.
The latest labor force participation rate — which is now back to 2019 levels — was higher compared to the 64.2% print recorded in October, when 49.35 million Filipinos were part of the workforce. A bigger workforce means more employment, National statistician Claire Dennis Mapa said, but he offered some caveats.
“When the (labor force participation rate) rises, so does employment,” he told journalists. “But not everyone who applies for a job becomes a full-time employee.”
Citing historical data, Mapa said that many Filipinos were employed in November owing to a busier economy. This is a month removed from December, a time when Filipinos spend their hard-earned money, such as government-mandated bonuses, to keep up with the holiday festivities.
Data broken down showed that four economic subsectors shed the highest number from its workforce on an annual basis. Fishing and aquaculture (532,000), education (45,000), public administration and defense; compulsory social security (40,000) and construction (30,000) recorded the largest drops in employment.
In terms of underemployment, the economic subsectors of wholesale, retail trade and repair of motor vehicles, and manufacturing were responsible for the outturn. Manufacturing (157,000) contributed to the largest monthly increase.
“Despite the positive steps in both employment and labor force participation, we note the elevated underemployment rate suggesting that despite finding jobs, workers still need more hours or wages likely to cover the rising cost of living,” Nicholas Mapa, senior economist at ING Bank in Manila, said.