Holiday season expected to boost PH employment

The country's employment rate is expected to see further improvement in the coming months, fueled by heightened demand during the Christmas season, according to economic analysis. Rizal Commercial Banking Corporation’s (RCBC) chief economist, Michael Ricafort, emphasized the impact of the seasonal upswing on labor opportunities.

“The pickup in manufacturing and other production activities in preparation for the seasonal increase in demand for the Christmas season could have improved the latest employment data,” Ricafort explained in a Viber message to the Philippine News Agency.

As of August 2024, the number of employed Filipinos reached an estimated 49.15 million, with the employment rate climbing to 96 percent, a noticeable increase from 95.6 percent in August of the previous year. Analysts are optimistic that September’s employment figures, set to be released by the Philippine Statistics Authority this Wednesday, will reflect further progress.

Ricafort noted that the holiday season typically generates a surge in hiring, particularly in the services and retail sectors. This trend is expected to bolster employment opportunities, benefiting industries engaged in holiday-related activities such as sales, logistics, and hospitality.

The economist also highlighted the favorable impact of an easing inflation trend. “Easing inflation would fundamentally help boost economic and other business activities, thereby also helping increase employment,” Ricafort stated. Lower inflation rates generally contribute to increased consumer spending and business investment, strengthening the overall economy and labor market.

Additionally, Ricafort pointed out that potential interest rate cuts by the US Federal Reserve and the Bangko Sentral ng Pilipinas (BSP) could further stimulate economic growth. Reduced rates are anticipated to boost demand for loans, fuel new investments and expansion projects, and drive increased production and export activity—all of which would contribute to higher employment levels.

The anticipation of improved employment data comes as the Philippines enters a crucial economic period, with holiday shopping and festivities providing a significant boost to multiple sectors. As these developments unfold, economic stakeholders remain hopeful for sustained momentum in the country's labor market.