The country’s unemployment rate rose to 6 percent in May from April’s 5.7 percent as more Filipinos participated in the labor market during the said month, according to the Philippine Statistics Authority (PSA).
Specifically, the latest labor force survey showed the number of jobless persons rose to 2.93 million in May 2022 from 2.76 million recorded in the previous month.
The unemployment rate, however, significantly improved from May 2021’s 7.7 percent in which 3.74 million were unemployed.
There were more participants in the labor market in May versus the previous month, as the labor force participation rate (LFPR) was registered at 64 percent in May 2022, higher than the 63.4 percent LFPR reported in April 2022.
The PSA also estimates the LFPR for the month was lower than the 64.6 percent in May last year.
In numerical terms, the PSA said there were 49.01 million out of the 76.53 million persons 15 years old and over in the labor force in May 2022.
In comparison, 48.46 million out of the 75.04 million persons 15 years old and over were in the labor force in May 2021.
Meanwhile, the number of employed individuals increased by 1.4 million in May 2022 from May 2021, bringing total employment to 46.1 million.
This translates to an employment rate of 94 percent in May 2022 or 94 in every 100 persons in the labor force had a job or business last May. This was higher than the 92.3 percent employment rate reported a year ago but slightly lower than the employment rate of 94.3 percent in April 2022.
The National Economic and Development Authority (NEDA) said in a statement significant employment gains were recorded in the services sector as tourism and business outlook improved with the further easing of restrictions.
This brings net employment creation to 3.5 million above pre-pandemic levels, NEDA said.
“Amidst external shocks, the government has sustained the economy’s growth momentum and steered it towards a higher growth path. Now, the immediate challenge is the full reopening of the economy. Over the medium term, the government will focus on creating more jobs, quality jobs and green jobs through productivity-enhancing investments,” said Socioeconomic Planning Secretary Arsenio Balisacan.
However, as the number of self-employed and unpaid family workers increased, the underemployment rate went up to 14.5 percent last May from 12.3 percent in May 2021, or an equivalent of 1.2 million additional underemployed. It also rose from the previous month’s 14 percent.
According to Balisacan, productivity-enhancing investments will include strategies to increase employability such as improved quality of education, provision of opportunities for life-long learning, in-demand skills development, options to obtain micro-credentials, enhanced job facilitation programs and strengthened linkages between industry, business and training institutions for a more efficient labor market.
NEDA also commended the ease in metrics of the Department of Health in determining the alert level system as critical in the economy’s reopening.
Balisacan likewise welcomed the move to immediately and safely resume face-to-face classes to increase domestic activities and prevent future productivity loss. He noted the need for a catch-up plan to regain the two years of learning lost during the COVID-19 pandemic.
“A learning catch-up plan is crucial. This will help secure better opportunities for future generations and ensure that our demographic dividend will not be wasted,” said Balisacan.
