PHL Labor Market Posts 3.2% Unemployment in November

The Philippine labor market remained robust in November 2024, with the unemployment rate dropping to 3.2%, the second-lowest since 2005, according to the Philippine Statistics Authority (PSA).

The number of employed Filipinos rose to 49.5 million, reflecting a gain of 1.4 million jobs compared to October 2024. The year-to-date average unemployment rate of 3.9% is well below the Philippine Development Plan’s 2024 target range of 4.4% to 4.7%.

The underemployment rate fell to 10.8%, down from 11.7% in November 2023 and 12.6% in October 2024, signaling better job quality and fewer workers seeking additional hours or employment.

“The labor market continues to strengthen, driven by economic growth and declining inflation. This allows us to open more opportunities and provide quality jobs for our people,” said Finance Secretary Ralph G. Recto.

The services sector remained the top employment generator, accounting for 62.1% of total jobs, followed by agriculture (20.0%) and industry (17.9%). Manufacturing led job creation with 784,000 new workers, followed by accommodation and food services (528,000) and healthcare and social work activities (303,000).

Wage and salary workers made up 63.8% of employed individuals, with 1.1 million more workers in this category compared to the previous year. Private establishments employed the majority at 78.7%, while the public sector accounted for 17.4%.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan highlighted the need to sustain the labor market’s momentum by focusing on job quality and workforce competitiveness.

“The government aims to expand opportunities, enhance skills, and promote business upgrading to ensure jobs offer competitive wages and align with productivity,” Balisacan said.

The government has introduced policies such as the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the Enterprise-Based Education and Training (EBET) Framework Act. These initiatives aim to attract investments, generate employment, and align workforce skills with emerging industries.

Efforts to upskill the workforce include the Technical Education and Skills Development Authority’s Training for Work Scholarship Programs, which target critical sectors like business process outsourcing, tourism, and construction. The National Occupational Safety and Health Strategy also aims to ensure safe and equitable work environments.

NEDA and the Department of Social Welfare and Development (DSWD) are enhancing social protection measures, including cash-for-work programs and tools to better assess beneficiaries’ eligibility for aid. These programs aim to support communities vulnerable to climate-related disasters.

Recto underscored the importance of these initiatives in addressing emerging challenges while maintaining strong labor market performance.

“As we continue to implement reforms and invest in the workforce, we are confident that the labor market will remain vibrant and responsive to emerging challenges,” he said.

The government’s comprehensive strategy includes preparing workers for green jobs, reskilling for artificial intelligence roles, and enhancing infrastructure for disaster resilience.