Philippine unemployment rate hits 18-year low in November 2023

The Philippines' unemployment rate fell to its lowest level in 18 years in November, driven by a decline in the number of jobless people, despite a drop in labor force participation.

The Labor Force Survey (LFS) for November 2023 showed 1.83 million unemployed Filipinos, 350,000 fewer than the 2.18 million in November 2022. This resulted in a decrease in the unemployment rate to 3.6%, the lowest since the Philippine Statistics Authority (PSA) introduced a new methodology for measuring the LFS in 2005, the National Economic and Development Authority (NEDA) said Tuesday.

However, the labor force participation rate fell to 65.9% from 67.5% in November 2022. This translates to an estimated 51.47 million Filipinos aged 15 years and older in the labor force, down from 51.88 million in November 2022.

The decline in participation was primarily attributed to reduced participation among young people (34.4% from 40.0%) and women (55.4% from 57.8%), influenced by factors such as family responsibilities, schooling, and age-related issues.

NEDA Secretary Arsenio M. Balisacan emphasized the need to expand the digital economy, including the digitalization of Micro, Small, and Medium Enterprises (MSMEs) and startups, to address the declining labor force and increase labor market gains in the coming years.

"Digitalization enables alternative work arrangements, particularly for the youth, women, and those in the creative sector. This will help address the declining labor force," Balisacan said.

He added that the government will focus on attracting investments in the Philippines, particularly in digital infrastructure, to create high-quality jobs. NEDA also plans to support the development of a more productive, agile, and adaptable workforce through legislative reforms and by establishing a framework for alternative work arrangements like part-time work.

While the unemployment rate declined, the underemployment rate also improved, falling to 11.7% from 14.4% in November 2022. The number of underemployed individuals, or those who want additional work or hours, dropped to 5.79 million, compared to 7.16 million in November 2022.