MANILA, Philippines — The proportion of jobless Filipinos further declined to 5.2 percent in January, a slight improvement from 5.3 percent a year earlier but is the lowest unemployment rate recorded since 2009, the Philippine Statistics Authority (PSA) said.
Based on the latest results of the January 2019 round of the PSA’s Labor Force Survey, the country logged in 72.524 million potential workers aged 15 years old and above, more than the working age population of 70.897 million as of the same month last year.
Underemployment, meanwhile, eased more rapidly to 15.6 percent in January – also a 10-year low – from 18 percent in the same month last year. This pertains to those who work for less than 40 hours per week and want more work.
“The overall improvements in the proportion of remunerative work, and full-time employment, as well as the decline in underemployment and vulnerable employment, indicate that the quality of work in the country is continuously progressing,” Socioeconomic Planning Secretary Ernesto Pernia said.
The PSA said while the number of able workers in the country shrunk as of January, the number of Filipinos gainfully employed remained stable.
This as the labor force participation rate fell to 60.2 percent in January 2019 from 62.2 percent in January 2018. This pertains to the percentage of the working age population who are either employed or are looking for jobs.
The National Economic and Development Authority (NEDA) attributed this to lower labor participation in the agriculture sector that “overshadowed” employment gains in the industry and services sectors.
“The prevalence of low-productivity jobs in the agriculture sector remains a challenge. Sustainable solutions such as shifting rice farmers to high-value crops, promoting crop diversification, accelerating development of local infrastructure, and training for farmers on technological advances are critical to raising productivity in agriculture,” said Pernia, who is also NEDA chief.
Continued decline in agricultural employment is also largely attributed to rising cost of inputs alongside low profit, limited access to credit, poor infrastructure, and vulnerability to environmental risks.
The recent enactment of the Rice Industry Modernization Act is also seen to contribute to job losses in the agriculture sector. Because of this, Pernia said the government must implement “concrete and urgent” interventions for workers who will be displaced.
Despite the shrinking of the labor force participation rate, the number of Filipinos who are gainfully employed remained stable with marginal improvement.
The country’s employment rate rose to 94.8 percent in January from 94.7 percent in the comparative month last year. These pertain to people engaged in full-time work or about 40 hours per week.
He added that in order to further improve labor market outcomes and meet the Philippine Development Plan (PDP) employment targets, the government should remain committed to providing policies and programs that are conducive to generating more jobs and improving the quality of work.
These include reducing the cost of doing business as well as more aggressive reductions in foreign investment restrictions.
“Implementing well-thought-out and sustainable policies is needed to improve employment growth in the agriculture sector and overall employment in the country,” said Pernia.