PH Unemployment Rate Drops to 3.9%, Exceeding 2024 Target

The Philippines’ unemployment rate improved to 3.9% in October 2024, bringing the year-to-date average to 4.0%, according to the Department of Finance (DOF).

This figure is well below the Philippine Development Plan’s 2024 target range of 4.4% to 4.7%, marking a significant achievement in the country’s labor market.

“Ibig sabihin nito, patuloy ang pagbuti ng ating labor market at nasa tamang direksyon tayo. Pero hindi po tayo titigil dahil tuloy-tuloy rin ang mga programa ng gobyerno para makapagbigay ng mas maraming kalidad na trabaho at matulungan ang mga Pilipino na tumaas pa lalo ang kanilang kita at makaahon sa kahirapan,” Finance Secretary Ralph G. Recto said.

The latest data reflect an additional 369,000 Filipinos employed in October 2024 compared to the same period last year, increasing total employment to 48.2 million. Year-to-date, around 845,000 jobs were created.

Underemployment, however, edged higher in October at 12.6%, up from 11.7% a year ago, though it averaged 12.2% for 2024, slightly lower than 2023’s 12.5%.

Youth entrants contributed significantly to labor market growth, comprising 79% of the 908,000 new participants in October. The services sector remained the largest employment contributor, accounting for 61% of the workforce, followed by agriculture (21.2%) and industry (17.9%).

Administrative and support services, particularly call center jobs, led job creation, with 247,000 new positions. This aligns with the Information Technology and Business Process Association of the Philippines (IBPAP) projection of a 7% revenue growth in the call center sector, expected to reach nearly $38 billion in 2024.

Other industries experiencing notable job growth include accommodation and food service (215,000), transportation and storage (202,000), construction (121,000), and mining and quarrying (101,000).

Government programs such as the CREATE MORE Act and the Enterprise-Based Education and Training (EBET) Framework Act have bolstered employment by attracting investments and enhancing workforce skills.

NEDA is also finalizing the Trabaho Para sa Bayan Plan, a 10-year roadmap aimed at addressing skills gaps and fostering collaboration between industry and academia.

Efforts to reskill workers for AI roles, led by DOLE and IBPAP, align with the rise of digital technology. Meanwhile, the Green Skills for Green Jobs program seeks to prepare workers for opportunities in renewable energy, mitigating the impact of job losses in agriculture due to typhoons.

The labor market’s robust performance underscores the effectiveness of these government initiatives in fostering economic resilience and providing opportunities for Filipinos across diverse sectors.