Unemployment eases to 3.9% in October 2024

Unemployment rate in the Philippines eased to 3.9% in October 2024 from 4.2% a year ago, the Philippine Statistics Authority (PSA) said Friday.

This brought the 10-month figure down to 4.3% from 4.6%, better than the 2024 target set by the Philippine Development Plan of 4.4% to 4.7%.

The National Economic and Development Authority (NEDA) said the government remains committed to generating high-quality employment for Filipinos, as the country’s labor market continues to improve with a declining unemployment rate.

Total employment reached 48.2 million during the period, marking an increase of 369,000 employed Filipinos from the previous year. This brings the full-year employment creation to approximately 600,000, driven by enhanced government initiatives to boost domestic employment opportunities.

However, the underemployment rate experienced a slight uptick, increasing to 12.6% from 11.7% during the same month last year. This increase translates to 486,000 additional underemployed individuals seeking more working hours, primarily from the wholesale and retail trade, agriculture, and forestry sectors. Despite this, full-year figures show a slight decline in underemployment to 13.3% in 2024 from 13.6% in 2023.

“The latest survey results show positive employment outcomes, with notable progress in reducing unemployment. Full-year headline figures reflect sustained improvement but underscore the need to intensify efforts to create more and better-quality jobs to meet the target set in the Philippine Development Plan (PDP) by 2028,” said NEDA Secretary Arsenio M. Balisacan.

Balisacan highlighted the administration’s commitment to implementing both supply- and demand-side measures to generate quality employment. The recently enacted Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to generate additional income opportunities and stimulate economic growth. Similarly, the Enterprise-based Education and Training Framework Act will address gaps in the labor sector by expanding training and upskilling programs in partnership with the private sector.

Along with these new laws, NEDA is finalizing the Trabaho Para sa Bayan Plan by the end of the year. The 10-year plan is expected to guide efforts to create a more dynamic labor market over the next decade.

“The Marcos Administration is working tirelessly to fast-track the critical infrastructure projects in key sectors such as connectivity, telecommunications, energy, and water to generate more income opportunities. Additionally, we are prioritizing the upskilling and reskilling of our workforce to equip Filipino workers with the knowledge and capabilities needed in today’s dynamic job market,” the country’s chief economic planner said.

NEDA emphasized collaboration with industry experts to support the Information Technology-Business Process Management (IT-BPM) sector in adapting to Artificial Intelligence (AI). This partnership aims to address challenges, leverage emerging opportunities, and promote upskilling and reskilling initiatives to equip the workforce with the advanced skills needed in today’s evolving labor market.

In light of recent calamities across various regions, the government will prioritize developing a governance framework for public-private partnerships to finance climate-resilient infrastructure and provide emergency employment assistance and other support for displaced workers. The Department of Labor and Employment will also continue granting cash-for-work wages under the Tulong Panghanapbuhay Para sa Ating Displaced Workers program.

Next month, NEDA will publish the 2024 Philippine Development Report, which will provide a comprehensive assessment of sectoral performance and recommend policy directions and strategies for 2025 to 2026, including the labor sector.

“With these policies in place, we are confident that we can further enhance the labor market and create more and better-quality income opportunities for Filipinos. This aligns with our goal of fostering sustainable and resilient economic growth for the country, even as we navigate disruptions such as AI and other emerging technological advancements,” said Balisacan.