Unemployment drop shows ‘encouraging’ path for PH labor market

By Ferdinand Patinio, Philippine News Agency

Laguesma also noted that year on year, the underemployment rate decreased from 15.9 percent to 12.1 percent, resulting in a decline of 1.29 million underemployed and this resulted in an increase in the number of wage and salary workers at 221,000. (File Photo: Jerome Sajise, DOLE/IPS via Department of Labor and Employment – DOLE/Facebook)

MANILA – The Department of Labor and Employment (DOLE) said Friday the latest labor force figures show an improvement in the quality of jobs in the country.

“Overall, the July 2024 results showed an encouraging trajectory for our labor market. Beyond the quantitative measurement, we are seeing improvement in the quality of jobs,” Labor Secretary Bienvenido Laguesma said in a message to reporters.

This came as the Philippine Statistics Authority (PSA) reported that the country’s unemployment rate decreased to 4.7 percent in July from 4.9 percent in the same month last year.

“If we just do a month-to-month, or June to July 2024, comparison and simply focus on unemployment rate, that’s correct, it rose to 4.7 percent from 3.1 percent. But the more reliable comparative period should be on a year-to-year basis. Thus, we should also consider the employment and the underemployment rates to give us a more complete picture of the employment situation,” he said.

Laguesma also noted that year on year, the underemployment rate decreased from 15.9 percent to 12.1 percent, resulting in a decline of 1.29 million underemployed and this resulted in an increase in the number of wage and salary workers at 221,000.

On the other hand, he said, the government and the private sector should also act together in creating more jobs to be able to face challenges in the labor sector.

“But over the months and as reflected by previous monthly LFS results, the continuing pressure and challenges posed by the nature and character of our labor market, particularly seasonality of jobs, the adverse effects of climate change, and rapid techno advancements require sustained and enhanced efforts and action not only of government but the private sector as well to be able to create more jobs and preserve existing ones,” he said.