The country’s unemployment rate fell 3.1 percent in June 2024, marking the lowest level in almost two decades, according to the Philippine Statistics Authority.
The jobless rate in June was lower than the 4.5 percent a year ago and 4.1 percent registered in May 2024.
“The government’s swift implementation of infrastructure projects and the continued improvement of operating conditions for manufacturing firms have led to these employment gains. Increasing investments in renewable energy, water supply, and mining and quarrying have also supported employment growth in these areas,” NEDA Secretary Arsenio M. Balisacan said.
In terms of magnitude, the PSA said the number of unemployed individuals in June 2024 was registered at 1.62 million, lower than the number of unemployed individuals in June 2023 at 2.33 million and in May 2024 at 2.11 million.
The National Economic and Development Authority (NEDA) said the June unemployment rate matches the record low set in December 2023, marking the lowest unemployment rate in nearly two decades.
Employment rate, on the other hand, was posted at 96.9 percent. This was higher than the employment rate estimated in June 2023 at 95.5 percent and in May 2024 at 95.9 percent.
In terms of level, the number of employed persons in June 2024 was recorded at 50.28 million. This was higher than the number of employed persons of 48.84 million in June 2023 and 48.87 million in May 2024.
In terms of magnitude, the Philippines recorded 50.3 million employed individuals, with the services sector leading in employment, accounting for 58.7 percent of the total employed population.
Finance Secretary Ralph G. Recto, on the other hand, expressed optimism on achieving the administration’s ultimate goal of reducing the poverty rate to a single-digit or 9% by 2028.
“These figures prove that our efforts are paying off, and that we are on track to lift 10 million more Filipinos out of the poverty line by the end of the President’s term. If we continue this momentum and ramp up investments to create more quality jobs for our people, we might even get there sooner than expected,” he said.
Significant employment growth was observed in the construction (938,000) and manufacturing (353,000) sectors.
But employment contracted in the agriculture and forestry (916,000) and fishing and aquaculture (81,000) sectors. This decline is attributed to the impacts of weather disturbances, natural disasters, pest and disease infestation, and the escalating tensions in the West Philippine Sea.
The PSA also recorded an underemployment rate of 12.1 percent, a slight increase from 12 percent in June 2023. This uptick equates to 208,000 employees seeking more work hours or an additional job.
The labor market’s continued improvement can be seen in the increase in the number of full-time (3.1 million), wage and salaried (+2.0 million), and middle-skilled (1.7 million) workers. Moreover, there was a significant decline in part-time (1.5 million) and vulnerable employment (521,000) compared to last year.
“To sustain these gains, we will persist in improving the country’s business climate to attract investments that generate higher-quality jobs. The government will address bottlenecks and expedite processes to fulfill investment pledges and reap the benefits of liberalization reforms,” Balisacan said.
Balisacan further added that the government will continue to enhance productivity by enabling the adoption of emerging technologies and equipping the workforce through upskilling and reskilling.
Among these initiatives is the establishment of Industry 4.0 facilities, led by the Department of Trade and Industry and the Department of Science and Technology. These facilities aim to foster a collaborative learning environment where large enterprises, MSMEs, and the academe can share knowledge on industry 4.0 management and advanced production technologies.
The government likewise supports fully implementing the National Artificial Intelligence (AI) Strategy Roadmap 2.0, which aims to strengthen the country’s capacity for sustainable digital transformation, innovation, and entrepreneurship in the digital economy.
NEDA is advocating for the passage of the Apprenticeship Bill, which will institute reforms in the apprenticeship program and equip the youth with job-ready skills through a blend of workplace training and classroom learning.
“While we see encouraging figures in terms of our job generation, we will continue to focus on generating high-quality and well-paying jobs to address the issue of vulnerable employment and ensure a brighter future for our Filipino workers,” Balisacan said.
Recto added that “with an all-time high gross national income per capita and very robust labor market, favorable factors are in place for us to become an upper-middle income country by 2025.”
According to the Finance Chief, the proposed national budget of PHP 6.35 trillion in 2025 is the government’s biggest tool to drive investments that will create more quality jobs for Filipinos, increase their incomes, reduce poverty incidence, and grow the economy at an even faster rate.
The national budget is equivalent to 22.1% of the country’s 2025 projected GDP and is higher by 10.1% than the 2024 national budget of PHP 5.77 trillion.
More than half of the 2025 national budget, or about 62.6%, will be allocated for both social and economic services, such as infrastructure, health, education, human capital development, social welfare, employment, housing, and other social protection programs.
“We, at the DOF, will ensure that every peso to be collected or borrowed to fund our gargantuan budget, will be stretched to deliver the biggest bang per buck for the Filipino people,” the Finance chief said.
