The unemployment rate in the Philippines rose to 4.5% in June, up from 4.3% in May, according to data from the Philippine Statistics Authority (PSA). This equates to 2.33 million unemployed individuals in June, a slight increase from the 2.17 million recorded in May.
Although the figures seem concerning, it’s worth noting that this is an improvement from June 2022’s unemployment rate of 6%, which corresponded to 2.99 million unemployed individuals.
June also saw a surge in underemployment, which refers to those workers who, while employed, are still seeking additional work hours. The underemployment rate grew from 11.7% in May to 12% in June. In actual numbers, this is an increase from 5.66 million in May to 5.87 million in June. However, like the unemployment rate, this figure is also an improvement from the 12.6% (or 5.89 million workers) recorded in June 2022.
A sectoral breakdown of the data reveals that the services sector remains the leading employer in the country, accounting for 58.2% of total employment. The agriculture and industry sectors followed, contributing 23.8% and 18% respectively.
A year-on-year comparison shows the accommodation and food services sectors experienced the most significant job growth, adding 612,000 jobs. The agriculture and forestry sectors added 457,000 jobs, and wholesale and retail trade, including vehicle repairs, saw an increase of 358,000 jobs. National Statistician Dennis Mapa pointed out a notable yearly increase in hog farming jobs, with an additional 173,000 positions.
However, not all sectors fared well. The fishing and aquaculture sectors saw a significant reduction of 233,000 jobs, manufacturing shed 99,000 positions, and professional, scientific, and technical activities lost 65,000 jobs. The decline in the fishing and aquaculture sectors can be linked to the closure of fish ponds in Regions 3 and 4, combined with slowed production in commercial marine fishing.
From May to June 2023, the construction, agriculture and forestry, and administrative and support services sectors added the most jobs. In contrast, fishing and aquaculture, transportation and storage, and arts, entertainment, and recreation recorded significant job losses.
Addressing the changing employment landscape, the National Economic and Development Authority (NEDA) underscored the importance of upskilling the Filipino workforce. NEDA advocates for greater investments in technical education, digital transformation, and innovative facilities to better position Filipinos in the evolving job market. As NEDA Secretary Arsenio Balisacan stated, with the rise of technologies like artificial intelligence, there’s an urgent need to modernize training facilities and refine the skills of the Filipino workforce.
