Unemployment in the Philippines eased to its lowest level in two decades, with the full-year 2024 average rate hitting 3.8 percent, down from 4.4 percent the prior year, the Philippine Statistics Authority (PSA) said in its latest Labor Force Survey.
In a press conference held in Quezon City yesterday, National Statistician Dennis Mapa said the 2024 unemployment rate translated to roughly 1.94 million jobless Filipinos that year.
This compares with 2.19 million unemployed individuals in 2023.
The 2024 average rate was the lowest since the PSA started compiling comparable data in 2005.
It was also well below the full-year target range of 4.4 percent to 4.7 percent set under the Philippine Development Plan 2023 to 2028.
The quality of jobs appears to have improved as well, Mapa said, noting the decline in full-year underemployment rate to 11.9 percent in 2024, also the lowest on record since 2005, and down from 12.3 percent in 2023.
That translates to 5.8 million underemployed Filipinos last year, compared with 5.9 million considered underemployed in 2023.
In a statement also issued yesterday, National Economic and Development Authority (NEDA) secretary Arsenio Balisacan said the implementation of the strategies outlined in the Philippine Development Report 2024, particularly those aimed at strengthening the labor market, is essential to sustaining economic growth and creating higher-income opportunities for Filipinos.
“The government remains committed to advancing both supply- and demand-side measures that will foster a more dynamic labor environment and meet the targets set in the Philippine Development Plan 2023-2028,” he said.
Employment at record high
In 2024, the employment rate stood at 96.2 percent, or a total of 48.85 million employed Filipinos, also the highest full-year level recorded since the current series started in 2005.
In the preceding year, the employment rate was 95.6 percent, with 48.18 million employed.
“You can be assured that the government will continue advancing programs that provide more quality jobs for Filipinos. And we do not just aim to simply create jobs. We are focusing heavily on improving education, infrastructure, and human development to ensure that we build a Filipino workforce equipped with the tools and opportunities they need to compete on the global stage,” Finance Secretary Ralph Recto said in a separate statement.
“The world is already taking notice of the strength of the Filipino workforce. During my engagements with global investors at the (recent) World Economic Forum in Davos, they consistently expressed high praise for Filipino talent. This is an opportunity the government is determined to fully harness and maximize, especially as the world transitions to using Artificial Intelligence,” he added.
Services still dominate
The Department of Finance (DOF) said that on average, the services sector continued to dominate the labor market, making up 61.1 percent of the total employed persons in 2024.
This was followed by agriculture (20.7 percent) and industry (18.3 percent).
The construction sector was the biggest employment driver for the year, adding an average of 298,000 more workers to the labor force compared to 2023, the DOF said.
Other sectors that posted additional jobs last year included: accommodation and food service activities (269,000), transportation and storage (250,000), and administrative and support service activities (241,000).
Wage and salary workers also continued to make up the largest share of employed persons in the country, accounting for an average 63.8 percent in 2024. This is higher than the 62.6 percent share in 2023.
In particular, 78.9 percent of wage and salary workers were employed by private establishments, while only 14.4 percent were employed by the government.
December rates
In December 2024 alone, unemployment in the country stood at 3.1 percent, translating to 1.63 million jobless Filipinos during the period, the PSA said.
The rate slipped from 3.2 percent in November, when there were 1.66 million unemployed persons.
Compared with December 2023, the unemployment rate was unchanged, though the PSA data showed slightly more unemployed individuals in the last month of 2024 than the 1.6 million jobless Filipinos in the corresponding month in 2023.
The underemployment rate in December dropped to 10.9 percent from 11.9 percent in the year-earlier period, which the NEDA saw as an indication of an improvement in job quality.
Seeking inclusivity
To align with workforce trends and industry demands, NEDA said the government is promoting more inclusive work arrangements that meet the needs of individuals from diverse backgrounds, reducing barriers to labor force participation.
Efforts to expand employability will also be intensified, including the implementation of the Enterprise-Based Education and Training Framework to equip workers with industry-relevant skills, the agency added.
NEDA said the government is also reinforcing reintegration efforts for returning Overseas Filipino Workers (OFWs), particularly in light of shifting immigration policies under the Trump administration in the US.
Through the Department of Migrant Workers and the Overseas Workers Welfare Administration, programs such as the Agarang Kalinga at Saklolo para sa mga OFW na Nangangailangan (AKSYON) Fund and the Emergency Repatriation Fund provide immediate financial and welfare assistance to affected OFWs.
To further support returning workers, the National Reintegration Center for OFWs (NRCO) is implementing programs that address the economic, social, and psychological aspects of reintegration, NEDA said.
The government is also considering expanding AKSYON Centers in key regions to enhance service accessibility, ensuring that OFWs have the necessary support as they transition back into the local workforce and economy, the agency added.
“By strengthening social protection, fostering a dynamic and inclusive labor market, and ensuring that economic gains benefit all Filipinos, we can create a workforce that is resilient and future-ready. Our goal is to sustain job creation, improve the quality of employment, and provide every Filipino with opportunities for long-term economic security,” Balisacan added.
