W. Visayas’ labor force participation dips in January

By Francis Allan L. Angelo

The labor force participation rate (LFPR), or the estimate of an economy’s active workforce, in Western Visayas decreased to 61.9 percent in January 2024, accounting for 3.510 million of the 5.670 million persons who were 15 years old and over, according to the Philippine Statistics Authority (PSA).

This marks a 0.8 percentage point decrease from the 62.7 percent LFPR reported in October 2023 and a 1.9 percentage point decrease from the 63.8 percent recorded in January 2023.

Despite the decline in LFPR, the employment rate remained relatively stable at 96.5 percent, with 3.387 million employed persons out of the 3.510 million in the labor force. This is a slight decrease of 0.1 percentage points from October 2023 but a 2.1 percentage point increase from January 2023.

Underemployment rate, which refers to employed persons who desire additional hours of work or a new job with longer working hours, slowed down to 13.0 percent or 440 thousand persons. This is 1.8 percentage points lower than the 14.8 percent recorded in October 2023 but 0.1 percentage points higher than the 12.9 percent in January 2023.

Unemployment rate in the region dropped to 3.5 percent, with 123 thousand unemployed persons, a decrease of 77 thousand from January 2023 but an increase of 3 thousand from October 2023.

“The decrease in labor force participation is concerning, as it means fewer people are actively seeking employment or are currently employed,” said Riza Dumalag, a fresh graduate from Iloilo City.

“As someone entering the job market, I hope to see more opportunities become available in the coming months. I hope the lower participation does not mean fewer opportunities.”

The PSA report also noted that persons not in the labor force include those who are not looking for work due to reasons such as housekeeping, schooling, and permanent disability.

“While I’m glad that the employment rate remains high, I worry about those who are underemployed and struggling to make ends meet,” an entrepreneur from Pavia, Iloilo said. “I hope the government and private sector can work together to create more stable, well-paying jobs for the people of Western Visayas.”

Small business owners share a sense of cautious optimism on the numbers.

“It’s a step forward,” says Maria, a local restaurant owner, “but we need to ensure that these jobs are not just numbers but opportunities that offer growth and stability.”

Government and local business initiatives continue to focus on creating a diverse range of job opportunities, including those in the service sector, which has provided more than half of the employment in the region.

Efforts are also underway to address underemployment by ensuring that the available jobs match the skill sets and hours desired by the workforce.

NATIONAL REPORT

Finance Secretary Ralph G. Recto recently expressed optimism following the February 2024 Labor Force Survey, which revealed notable improvements in the Philippine job market.

The developments indicate a steady stride towards the government’s ambitious target of slashing the poverty rate to 9% by 2028.

“The results are encouraging signs that the government’s strategic thrust in providing more and better quality jobs to the Filipino people is paying off. I am optimistic that through this continued progress in our labor market, which leads to increased opportunities and incomes for more Filipinos, we will be able to reach our single-digit poverty goal sooner than expected,” declared Secretary Recto.

February’s unemployment rate dipped to a record low of 3.5%, a considerable decrease from 4.8% the previous year, signaling the second-lowest number of unemployed individuals ever recorded at 1.8 million.

The overall employment rate escalated to 96.5%, up from 95.2% in February 2023, with a significant rise in formal and stable work as evidenced by the 24.4 million wage and salary positions within private establishments.

The service sector spearheads job provision with over 60% of the total, while agriculture and industry follow with 21.3% and 18.1% respectively. The employment boost has been attributed to growth in construction, transportation, storage, administrative support, manufacturing, and food service sectors.

The increasing employment quality is further underscored by the decrease in underemployment to 12.4% from 12.9% last year, showing that people are not just working more but also better.

Bolstering this positive trend is a World Bank report projecting the country might beat its poverty reduction target by two years, possibly lowering the poverty incidence to 9.3% by 2026. This prediction is backed by the continual labor market enhancements and declining inflation rates.

Recto underlined the DOF’s dedication to fostering labor and improving employment conditions while maintaining control over inflation. Strategies include the vigorous enactment of economic liberalization laws aimed at attracting more investment and the recent implementation of the Public-Private Partnership (PPP) Code’s rules, expected to catalyze a flux of job-creating infrastructure investments.

The government’s commitment is further evident in its support for legislative measures like the Enterprise Productivity Act, the Apprenticeship Bill, and the Lifelong Learning Bill, designed to augment the employability of Filipinos. Complementing these are increased government investments in education, upskilling, healthcare, and other human capital development initiatives.