Unemployment in the country declined in August as jobs lost due to typhoons in the previous month were recovered, according to the Philippine Statistics Authority (PSA).
Preliminary results of the Labor Force Survey released by the PSA yesterday showed that the unemployment rate dropped to 3.9 percent in August from the previous month’s 5.3 percent and four percent in the same month last year.
This translated to 2.03 million jobless Filipinos in August, down from the previous month’s 2.59 million and 2.07 million in August 2024.
In a press conference, National Statistician Dennis Mapa said the typhoons that hit the country in July affected employment in industries, particularly agriculture, retail trade and construction.
He said these sectors have since recovered. ‘So in a way, the job losses in July seem temporary.’
Leonardo Lanzona Jr., economics professor at the Ateneo de Manila University said in an email that the slight increase in factory output in August may have also contributed to the lower unemployment.
‘This reversed the negative factory output observed in July. This could have resulted in more jobs which decreased the unemployment,’ he said.
Malacañang attributed the latest labor force survey results to the government’s job generation efforts.
‘The government and the President did not stop working to uplift the lives of Filipinos. We have ongoing job fairs to bring employment opportunities closer to our countrymen,’ Presidential Communications Undersecretary Claire Castro said at a press briefing.
‘This shows that the President really cares about the welfare of each one,’ she added.
Meanwhile, the country’s employment rate rose to 96.1 percent in August from the previous month’s 94.7 percent and 96 percent in the same month last year.
There were 50.10 million employed Filipinos in August, up from 46.05 million in the previous month and 49.15 million in the same month last year.
Job quality also improved as the underemployment rate went down to 10.7 percent in August from the previous month’s 14.8 percent and 11.2 percent in the same month in 2024.
This was equivalent to 5.38 million underemployed Filipinos or those who want an additional job or longer work hours in August, lower than the prior month’s 6.80 million and 5.48 million in the same month last year.
Sub-sectors which saw the biggest month-on-month increase in employment were the agriculture and forestry (1.35 million); wholesale and retail trade; repair of motor vehicles and motorcycles (1.30 million); construction (672,000); other service activities (399,000) and fishing and aquaculture (346,000).
On the other hand, those with the largest month-on-month drop in jobs in August were human health and social work activities (-105,000); mining and quarrying (-103,000); professional, scientific and technical activities (-102,000); manufacturing (-70,000) and education (-54,000).
Department of Economy, Planning and Development (DEPDev) Secretary Arsenio Balisacan welcomed the developments in the labor market, noting that efforts to expand employment opportunities are paying off.
‘These positive labor market indicators reflect our collective effort to sustain economic growth while ensuring that more Filipinos benefit from it. We are working to generate not just jobs, but quality jobs that will raise incomes, reduce underemployment and improve the overall well-being of our people,’ he said.
As the holidays draw near, Lanzona said orders for various seasonal items have started to pile up, which may lead to high level of production and employment for the rest of the Christmas season.
The DEPDev said it aims to build on the positive labor market developments by promoting the policies and strategies under the Trabaho Para sa Bayan (TPB) Plan 2025-2034, aimed at generating higher quality jobs.
‘Guided by the TPB Plan, we aim to support the transformation of the labor force toward higher-paying and more productive jobs by attracting investments, developing a competitive and skills-ready workforce and strengthening labor market governance to effectively respond to evolving conditions,’ Balisacan said.
Amid global headwinds, domestic challenges and climate risks, he said there is a need to protect vulnerable workers and enhance labor market resilience.
‘We aim to enhance resilience in sectors vulnerable to disruptions, such as retail trade and agriculture, by prioritizing improvements in logistics, infrastructure, digitalization and workforce development, particularly among micro, small and medium enterprises,’ he said.
‘The government is also ramping up investments in climate-resilient infrastructure and proactive measures, alongside timely emergency employment programs to support workers affected by disruptions,’ he said.