The unemployment rate rose to 8.7 percent in April, with the National Capital Region (NCR) posting its second highest jobless rate on record, following the imposition of the stricter quarantine measures in the NCR Plus due to the spike in new coronavirus disease 2019 (COVID-19) cases.
The unemployment rate rose from 7.1 percent in March but was substantially lower than the record high 17.6 percent in April last year, during the first imposition of enhanced community quarantine (ECQ).
The Philippine Statistics Authority (PSA) said an estimated 4.14 million were jobless in April, up from the 3.44 million in March but lower by 3.09 million from 7.23 million in April 2020.
The underemployment rate rose to 17.2 percent in April, translating to 7.45 million employed persons who wanted to work longer hours.
The said figures also went up from the 16.2 percent underemployment rate recorded in March, which translated to 7.34 million underemployed.
The PSA’s labor force survey was conducted from April 8 to 30.
ECQ and modified ECQ (MECQ) were imposed in the NCR Plus from March 29 to May 15, 2021.
The economic managers said in a joint statement this resulted in a temporary reversal of the first quarter employment gains.
“However, compared to last year’s ECQ, the overall labor market outcomes are substantially better as we took a more risk-based approach in imposing restrictions,” the statement released by Socioeconomic Planning Secretary Karl Kendrick Chua, Finance Secretary Carlos Dominguez and Budget Secretary Wendel Avisado said.
Trade Secretary Ramon Lopez said the uptick in jobless rate is temporary “as we are back in the process of gradual, calibrated and safe reopening of the economy.”
The NCR and Calabarzon, where the strictest quarantine measures were imposed, posted the highest regional unemployment rates in April 2021 of 14.4 percent and 13.4 percent, respectively.
Dennis Mapa, national statistician, said in a virtual briefing the unemployment rate in NCR in April is the second highest recorded in the time series from July 2020’s 15.8 percent.
The economic managers said the unemployment rate outside NCR continued its general downward trend, declining from 8.7 percent in January 2021 to 7.9 percent in April 2021, reflecting the gains from the safe reopening of the economy in the provinces.
The economic team also pointed out the underemployment rate in NCR increased sharply from 8.2 percent in January 2021 to 15.5 percent in April 2021 as more jobs shifted to part-time arrangements given capacity restrictions.
The labor force participation rate (LFPR) in the country likewise fell from 65 percent to 63.2 percent from March to April 2021, respectively.
“Given the higher unemployment rate and lower LFPR, 2.1 million jobs were lost between March and April 2021. The bulk of this was driven by construction (-0.8 million), agriculture (-0.6 million), and wholesale and retail trade (-0.5 million),” the economic managers said.
Labor Secretary Silvestre Bello III expressed confidence the employment sector will soon be able to recover with the safe reopening of businesses and the rollout of vaccines for A4 priority, the workers.
Presidential spokesman Harry Roque yesterday said the government is exerting efforts to stimulate the economy such as the financial assistance being extended to businesses affected by lockdowns, to the ramping up of the national vaccination program to inoculate more workers to enable them to return to work. (With G. Naval and J. Montemayor)
