PHL Unemployment Rate Drops to 3.9%

The Philippine unemployment rate dropped to 3.9% in October 2024, down from 4.2% in the same period last year, according to the Philippine Statistics Authority (PSA).

The National Economic and Development Authority (NEDA) lauded the improvement as a sign of a steadily recovering labor market and reaffirmed its commitment to creating more high-quality jobs.

Total employment reached 48.2 million in October, with 369,000 more Filipinos employed compared to the previous year.

For the entire year, employment creation totaled approximately 600,000, exceeding expectations set in the Philippine Development Plan (PDP) for 2024, which targeted a full-year unemployment rate of 4.4% to 4.7%.

“The latest survey results show positive employment outcomes, with notable progress in reducing unemployment,” said NEDA Secretary Arsenio M. Balisacan.

“Full-year headline figures reflect sustained improvement but underscore the need to intensify efforts to create more and better-quality jobs to meet the target set in the PDP by 2028.”

Despite this progress, underemployment increased slightly to 12.6% in October from 11.7% a year earlier, reflecting 486,000 more workers seeking additional hours or better-paying jobs, particularly in wholesale and retail trade, agriculture, and forestry sectors.

Balisacan noted that while the government has made gains in reducing unemployment, creating high-quality and resilient employment remains a top priority.

To this end, the government has implemented new laws 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 Framework Act.

These measures aim to stimulate economic growth and address labor sector gaps through expanded training and upskilling programs in partnership with private enterprises.

“The Marcos Administration is working tirelessly to fast-track the critical infrastructure projects in key sectors such as connectivity, telecommunications, energy, and water to generate more income opportunities,” Balisacan said.

“We are also prioritizing the upskilling and reskilling of our workforce to equip Filipino workers with the knowledge and capabilities needed in today’s dynamic job market.”

NEDA is also set to finalize the Trabaho Para sa Bayan Plan by the end of 2024, a comprehensive 10-year roadmap to foster a dynamic labor market.

Additionally, the government is focusing on supporting sectors such as Information Technology-Business Process Management (IT-BPM) in adapting to Artificial Intelligence (AI) to ensure the Filipino workforce remains competitive amid technological disruptions.

In response to recent calamities, the government will strengthen public-private partnerships to finance climate-resilient infrastructure and provide emergency employment assistance for displaced workers.

The Department of Labor and Employment’s Tulong Panghanapbuhay Para sa Ating Displaced Workers program will also continue offering cash-for-work opportunities.

NEDA plans to publish the 2024 Philippine Development Report next month, outlining sectoral performance and policy directions for 2025 and 2026.

“With these policies in place, we are confident that we can further enhance the labor market and create more and better quality income opportunities for Filipinos,” Balisacan said.

“This aligns with our goal of fostering sustainable and resilient economic growth for the country, even as we navigate disruptions such as AI and other emerging technological advancements.”