MANILA, Philippines – The Philippines’ unemployment rate dropped for the second straight month to 3.7% in September 2024, but the underemployment rate rose to 11.9%, indicating the need for better-quality jobs.
The 3.7% unemployment rate for September 2024 is equivalent to 1.89 million Filipinos. It is lower than the 4% or 2.07 million Filipinos recorded in August 2024, and the 4.5% or 2.26 million Filipinos in September 2023.
There were 49.87 million employed persons in September 2024, bringing the employment rate to 96.3%. This is slightly higher than the 96% or 49.15 million in August 2024, and the 95.5% or 47.67 million in September 2023.
But out of the 49.87 million employed persons, 5.94 million are considered underemployed, for an underemployment rate of 11.9%. This is higher than the 11.2% or 5.48 million Filipinos logged in August 2024, and the 10.7% or 5.11 million Filipinos in September 2023.
Underemployment refers to employed individuals who want more work hours in their current job, a second job to augment their income, or a new job with longer work hours.
“The government is urgently addressing the constraints to high-quality job creation and collaborating with the private sector to capacitate our workers with the right skills and competencies simultaneously,” National Economic and Development Authority Secretary Arsenio Balisacan said in a statement on Wednesday, November 6.
Balisacan noted that the government aims to finalize the Trabaho Para sa Bayan (TPB) Plan by the end of 2024.
The TBP Plan is a 10-year road map that will include “strategies to encourage investments in priority sectors, improve the employability of the current and future workforce, and enhance labor market governance for the next decade.”
Industries adding, shedding workers
A big majority of employed persons work in the services sector (62.8% of the 49.87 million), followed by agriculture (19.9%) and industry (17.4%).
Year-on-year, the administrative and support service activities subsector added the most workers in September 2024 (+735,000 compared to September 2023). Next are other service activities (+559,000); wholesale and retail trade, repair of motor vehicles and motorcycles (+486,000); public administration and defense, compulsory social security (+333,000); and manufacturing (+200,000).
In contrast, these subsectors shed the most workers year-on-year: accommodation and food service activities (-242,000); agriculture and forestry (-210,000); fishing and aquaculture (-136,000); construction (-87,000); and electricity, gas, steam, and air conditioning supply (-83,000). – Rappler.com