The country’s unemployment rate fell to 3.6 percent in November last year, the lowest recorded since a new method was used to measure the labor force in 2005, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority’s latest Labor Force Survey showed there were 1.83 million unemployed people in November 2023, 350,000 fewer than the 2.18 million in the same period in the previous year. It also improved from the 2.09 million recorded unemployed in October 2023.
The employment rate in November 2023 increased to 96.4 percent, from 95.8 percent in November 2022 and in October last year.
In terms of levels, the number of employed persons in November 2023 was estimated at 49.64 million, lower than the number of employed persons in the same month of the previous year at 49.71 million. In October 2023, the number of employed persons was posted at 47.8 million.
Underemployment rate also declined 11.7 percent in November 2023, from 14.4 percent in November 2022. In October 2023, the underemployment rate was also at 11.7 percent.
In terms of magnitude, the number of underemployed persons — or those who expressed the desire to have additional hours of work in their present job or to have additional job, or to have a new job with longer hours of work — in November 2023 was estimated at 5.79 million out of the 49.64 million employed individuals.
In the same month of the previous year, the number of underemployed was higher at 7.16 million, but lower in October 2023 at 5.6 million.
Meanwhile, the labor force participation rate slid to 65.9 percent from 67.5 percent in November 2022. This translates to an estimated 51.47 million Filipinos aged 15 years and older in the labor force, lower than the 51.88 million in November 2022.
The decline was attributed to reduced participation of young people and women in the labor force, influenced by family responsibilities, schooling and age-related factors.
NEDA Secretary Arsenio Balisacan in his statement emphasized the need to expand the digital economy, including the digitalization of micro, small and medium enterprises and startups, to address the declining labor force and increase labor market gains in 2024 and beyond.
“Digitalization enables alternative work arrangements, particularly for the youth, women and those in the creative sector. This will help address the declining labor force,” the NEDA chief said.
“We will take full advantage of the liberalization reforms intended to attract investments in the Philippines, especially in digital infrastructure. Upgrading our infrastructure will attract investments that generate high-quality jobs,” he added.
Balisacan said the government will further support a more productive, agile and adaptive workforce by passing and implementing crucial regulatory reforms, such as the Apprenticeship Bill, Lifelong Learning Bill and the Enterprise Productivity Act.
He also underscored the need to establish a regulatory framework to allow alternative work arrangements, including part-time work, even in the formal economy.
“Allowing part-time work even in the formal sector will expand opportunities for lifelong learning, work experience in an organized setting and coverage in social protection systems,” Balisacan said.
Bienvenido Laguesma, secretary of the Department of Labor and Employment (DOLE), said the agency will do its part in creating more job opportunities in the coming months.
“DOLE will continue to collaborate with the private sector, particularly business organizations; and do convergence with other government departments, so that more decent, remunerative, and quality jobs can be created,” said Laguesma.
Laguesma attributed the improving LFS numbers to the Yuletide season as well as to the easing of health protocols. – Gerard Naval
