The national unemployment rate dropped to 4.2 percent in October from 4.5 percent in the same month last year, the lowest tally since April 2005, the Philippine Statistics Authority (PSA) said Thursday.
In absolute numbers, the PSA said about 2.09 million Filipinos were unemployed in October this year, down from 2.24 million in the same month in 2022.
The National Economic and Development Authority (NEDA) attributed the positive labor market developments to the government’s efforts to create an environment conducive to high-quality job creation. NEDA also stressed the importance of expanding reskilling and upskilling opportunities for Filipinos to keep pace with evolving job demands.
The October 2023 labor force survey showed a positive employment rate of 95.8 percent, exceeding the 95.5 percent recorded in October 2022 and marking the highest level since April 2005. The figure translates into about 47.80 million employed Filipinos aged 15 and above, up from 47.06 million employed in the same period last year.
The underemployment rate, which refers to the percentage of employed individuals seeking additional work hours, also declined. The PSA reported an 11.7-percent underemployment rate in October 2023, down from 14.2 percent in October 2022.
The Labor Force survey showed that most new employment opportunities were generated in middle-skilled (+334,000) and high-skilled occupations (+897,000), primarily driven by the expansion of the tourism and information technology-business process outsourcing (IT-BPO) sectors.
NEDA Secretary Arsenio Balisacan expressed optimism the labor market would continue to improve, citing the Marcos administration’s focus on promoting trade and investments, which are expected to boost job creation.
“We can make the labor market more inclusive by attracting more investments, particularly those that bring in new and better technology. We also need to expand and enhance learning opportunities to equip Filipinos for future jobs,” Balisacan said.
Balisacan said he expects the positive labor market trend to continue following the recent signing of Republic Act No. 11966, or the Public-Private Partnership (PPP) Code, by President Ferdinand Marcos Jr. on Dec. 5, 2023.
The law is expected to strengthen the country’s investment climate by fostering a more stable and predictable environment for collaboration on high-impact infrastructure projects.
“The passage of the PPP Code is just one of several recent reforms that have made the Philippines more attractive to foreign investors. It provides the government with a stronger framework for attracting investments, which in turn creates employment opportunities for Filipino workers in various critical growth areas, including infrastructure,” said Balisacan.