Unemployment rate rises to 4.5% in September

MANILA, Philippines — Unemployment in the country rose in September from the previous month, but the number of individuals looking for an additional job declined, according to the Philippine Statistics Authority (PSA).

Results of the PSA’s Labor Force Survey released yesterday showed the unemployment rate was at 4.5 percent in September, up slightly from the previous month’s 4.4 percent.

The jobless rate in September, however, was down from five percent in the same month last year.

In terms of magnitude, there were 2.26 million unemployed individuals in September, up from 2.21 million in the previous month, but lower than the 2.50 million jobless individuals in September 2022.

In a press conference yesterday, national statistician Dennis Mapa cited three reasons for the increase in unemployment in September from the previous month.

“One is they were looking for a job available, but there is no job. Second is the bad weather. Third is they are waiting for rehiring or some job recall,” he said.

Meanwhile, the country’s underemployment rate dropped to 10.7 percent in September this year from the previous month’s 11.7 percent, and 15.4 percent in September last year.

There were 5.11 million underemployed individuals or those who expressed desire to have an additional job or hours of work in September this year, down from 5.63 million in the previous month, and 7.33 million in September last year.

The employment rate in the country dipped slightly to 95.5 percent in September this year from the previous month’s 95.6 percent, but went up from 95 percent in September 2022.

This translates to 47.67 million employed individuals in September this year, lower than the previous month’s 48.07 million, but higher than the 47.58 million in September last year.

The country’s labor force participation rate dipped to 64.1 percent in September this year from the previous month’s 64.7 percent, and 65.2 percent in September a year ago.

There were 49.93 million individuals in the labor force in September this year, lower than the previous month’s 50.29 million, and 50.08 million in September 2022.

Industries with the highest month-on-month drop in employment in September are agriculture and forestry (-1.17 million); fishing and aquaculture (-363,000); construction (-252,000); manufacturing (-147,000); and human health and social work activities (-111,000).

Those with the largest month-on-month increase in employment in September, meanwhile, are accommodation and food service activities (506,000); transportation and storage (225,000); public administration and defense, compulsory social security (204,000); information and communication (172,000); and wholesale and retail trade, repair of motor vehicles and motorcycles (151,000).

Economic Planning Secretary Arsenio Balisacan said 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,” he said.

He said issues affecting the labor market would be addressed by building the economy’s resilience.

“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, the government will implement more programs to develop a more resilient agriculture sector. This will help minimize employment losses in the sector,” he said.

By facilitating digitalization and promoting innovation in business, especially in micro, small and medium enterprises, the NEDA believes more high-quality and high-paying job opportunities would become available.

“This will be supported by expanding training and re-skilling programs for workers to meet the needs of these innovative business,” Balisacan said.

To address the declining labor force participation rate among women, he said the government would continue to promote programs that encourage the adoption of wider alternative work arrangements to allow people to remain productive in  the comfort of their homes.