Jobless rate declines to 3.1% in June, lowest in nearly 20 years
The Philippine Statistics Authority (PSA) reported on Wednesday that the country’s unemployment rate for June fell to 3.1 percent, down from 4.5 percent in June 2023. This rate matches the record low set in December 2023, marking the lowest unemployment rate in nearly two decades.
In terms of magnitude, the Philippines recorded 50.3 million employed individuals, with the services sector leading in employment, accounting for 58.7 percent of the total employed population.
Significant employment growth was observed in the construction (+938,000) and manufacturing (+353,000) sectors.
“The government’s swift implementation of infrastructure projects and the continued improvement of operating conditions for manufacturing firms have led to these employment gains. Increasing investments in renewable energy, water supply, and mining and quarrying have also supported employment growth in these areas,” said NEDA Secretary Arsenio M. Balisacan.
Meanwhile, employment contracted in the agriculture and forestry (-916,000) and fishing and aquaculture (-81,000) sectors. This decline is attributed to the impacts of weather disturbances, natural disasters, pest and disease infestation, and the escalating tensions in the West Philippine Sea.
The PSA also recorded an underemployment rate of 12.1 percent, a slight increase from 12.0 percent in June 2023. This uptick equates to 208,000 employees seeking more work hours or an additional job.
The labor market’s continued improvement can be seen in the increase in the number of full-time (+3.1 million), wage and salaried (+2.0 million), and middle-skilled (+1.7 million) workers. Moreover, there was a significant decline in part-time (-1.5 million) and vulnerable employment (-521,000) compared to last year.
“To sustain these gains, we will persist in improving the country’s business climate to attract investments that generate higher-quality jobs. The government will address bottlenecks and expedite processes to fulfill investment pledges and reap the benefits of liberalization reforms,” stated Balisacan.
The NEDA chief further added that the government will continue to enhance productivity by enabling the adoption of emerging technologies and equipping the workforce through upskilling and reskilling.
Among these initiatives is the establishment of Industry 4.0 facilities, led by the Department of Trade and Industry and the Department of Science and Technology. These facilities aim to foster a collaborative learning environment where large enterprises, MSMEs, and the academe can share knowledge on industry 4.0 management and advanced production technologies.
The government likewise supports fully implementing the National Artificial Intelligence (AI) Strategy Roadmap 2.0, which aims to strengthen the country’s capacity for sustainable digital transformation, innovation, and entrepreneurship in the digital economy.
NEDA is advocating for the passage of the Apprenticeship Bill, which will institute reforms in the apprenticeship program and equip the youth with job-ready skills through a blend of workplace training and classroom learning. NEDA Public Affairs
