Jobless rate eases to 3.5% in February

MANILA, Philippines —  The country’s unemployment rate declined in February as more employment opportunities were created in the wholesale and retail trade and agriculture sectors, according to the Philippine Statistics Authority (PSA).

In a press conference, National Statistician Dennis Mapa said preliminary results of the Labor Force Survey showed the jobless rate was at 3.5 percent in February, down from 4.5 percent in January this year and 4.8 percent in February 2023.

This translates to 1.80 million unemployed Filipinos in February, lower than the 2.15 million in January and the 2.47 million in February last year.

Mapa said the unemployment level in February is the lowest since the 1.60 million in December last year.

He said the opening of classes in colleges and universities in February created job opportunities in activities related to wholesale and retail trade.

“That’s one big contributor (to lower unemployment figure),”he said.

He also said there were opportunities in agriculture as planting started.

PSA data showed the employment rate rose to 96.5 percent in February from the previous month’s 95.5 percent and 95.2 percent in February 2023.

In terms of levels, there were 48.95 million employed individuals in February, higher than the 45.94 million a month ago and the 48.80 million in February 2023.

The underemployment rate in February was at 12.4 percent, down from 13.9 percent in January and the 12.9 percent in the same period last year.

In terms of magnitude, 6.08 million were underemployed or expressed the desire to have additional hours of work in their present job or to have an additional job in February, decreasing from 6.39 million in January and 6.29 million in February 2023.

While the latest data shows the country’s labor market remains strong, the National Economic and Development Authority (NEDA) said the government would continue to prioritize people-centered policies and efforts to attract  investments to support the continued improvement in the jobs market.

“The government remains resolute in creating an enabling policy and regulatory environment to attract employment-generating investments. We will also continue to implement measures to address bottlenecks and expedite processes to realize investment pledges, particularly in priority sectors holding much promise, such as renewable energy and critical minerals,” NEDA Secretary Arsenio Balisacan said.

He also said the Inter-Agency Investment Promotion Coordination Committee is coordinating on the creation of the medium- and long-term Foreign Investment Promotion and Marketing Plan.

“We also recognize that the fast-tracked implementation of the government’s infrastructure flagship projects, housing program and recovery of the tourism sector contributed to positive employment outcomes,” he said.

As the labor force participation rate decreased to 64.8 percent in February from 66.6 percent in the same month last year, with young people and women withdrawing from the labor force, Balisacan said addressing the needs of vulnerable groups including women, youth, older people and those with disabilities remains a priority for the government to encourage them to work.

He said the government would also revisit the existing policy on alternative work modes such as the Telecommuting Act so it can adapt to the evolving work landscape and rising preference for remote work.

“The government will explore enhancing the potential of part-time work to help promote lifelong learning. A framework for part-time work and similar set-ups can allow workers to retool or upskill without leaving the workforce,” he said.