Jobless rate eases further in May; job quality improves

MANILA, Philippines — The country’s unemployment rate dipped in May to its second lowest level since April 2005, while the quality of jobs improved, according to the Philippine Statistics Authority (PSA).

National Statistician Dennis Mapa, at a press conference yesterday, said preliminary results of the PSA’s Labor Force Survey showed the unemployment rate dropped to 4.3 percent in May this year from 4.5 percent in April 2023 and six percent in May 2022.

“This is the second lowest unemployment rate recorded since April 2005,” he said.

Mapa said there were 2.17 million jobless Filipinos in May this year, down from 2.26 million in April 2023 and 2.93 million in May last year.

The underemployment rate also fell to 11.7 percent in May this year from 12.9 percent in April 2023 and 14.5 percent in May 2022.

“The underemployment rate in May 2023 was the second lowest since April 2005 with March 2023 underemployment rate of 11.2 percent as the lowest,” the PSA said.

There were 5.66 million underemployed individuals or those looking for additional hours of work or jobs in May this year, lower than the 6.20 million in  April 2023, and 6.67 million in May last year.

Meanwhile, the employment rate was estimated at 95.7 percent in May this year, up from 95.5 percent in April 2023 and 94 percent in May 2022.

In terms of magnitude, there were 48.26 million employed individuals in May this year, higher than the 48.06 million in April 2023 and 46.08 million in May last year.

Industries with the largest increase in employment in May compared to April are agriculture and forestry (810,000); fishing and aquaculture (372,000); arts, entertainment and recreation (162,000); other service activities including repairs of computers and personal and household goods, laundry services, domestic services, funeral related activities, and personal service activities (124,000) and accommodation and food service activities (53,000).

On year-on-year basis, those with the biggest increase in employment in May are agriculture and forestry (1.25 million); accommodation and food service activities (398,000); other service activities (365,000); fishing and aquaculture (351,000); arts, entertainment and recreation (305,000).

Meanwhile, industries which registered the largest month-on-month drop in employment in May are wholesale and retail trade; repair of motor vehicles and motorcycles (-577,000); administrative and support service activities (-367,000) and education (-152,000).

Those which registered the biggest year-on-year decline in employment in May are wholesale and retail trade; repair of motor vehicles and motorcycles (-781,000); construction (-274,000) and manufacturing (-253,000).

The country’s labor force participation rate rose, recorded at 65.3 percent in May this year which is higher than the 65.1 percent in April 2023 and 64 percent in May last year.