Unemployment rate falls to 3.5% in February

The National Economic and Development Authority (NEDA) said that the Marcos Administration remains firm in prioritizing people-centered policies and attracting job-creating investments to support the continued improvement of the Philippine labor market and enable Filipinos to earn higher wages from better jobs.

NEDA said this following the release today (April 11, 2024) of the Philippine Statistics Authority's February 2024 Labor Force Survey (LFS) results, which showed that the country's labor market remained strong as unemployment and underemployment rates continued to decline, year on year. 

The country's unemployment rate decreased to 3.5 percent in February from the 4.8 percent recorded in the same month last year, which indicates 679,000 fewer unemployed individuals.%u202F 

Moreover, the LFS showed an improvement in the quality of employment, with a decline in the underemployment rate to 12.4 percent in February 2024 from 12.9 percent in the same month of 2023. Also, there is an increase in the proportion of wage and salaried employment, middle-skilled occupations, and full-time work. 

"The government remains resolute in creating an enabling policy and regulatory environment to attract employment-generating investments. We will also continue to implement measures to address bottlenecks and expedite processes to realize investment pledges, particularly in priority sectors holding much promise, such as renewable energy and critical minerals," said NEDA Secretary Arsenio M. Balisacan. 

He added that the Inter-Agency Investment Promotion Coordination Committee is currently coordinating the formulation of the medium- and long-term Foreign Investment Promotion and Marketing Plan. 

"We also recognize that the fast-tracked implementation of the government's infrastructure flagship projects, housing program, and recovery of the tourism sector contributed to positive employment outcomes," said Balisacan.%u202F 

On the other hand, the LFS showed that the labor force participation rate decreased to 64.8 percent in February 2024, from 66.6 percent last year, with young people (-669,000) and women (-404,000) withdrawing from the labor force.%u202F 

"The needs of vulnerable groups, including women, youth, older people, and those with disabilities, remain our priority to encourage workforce participation. We will improve access to quality childcare, finance, and entrepreneurship opportunities to support women's entry and retention in the labor market," the NEDA chief said. 

Balisacan added that the government will revisit the existing policy governing alternative work modes, such as the Telecommuting Act, and adapt it to the evolving work landscape to address the growing preference for remote work.%u202F 

"The government will explore enhancing the potential of part-time work to help promote lifelong learning. A framework for part-time work and similar set-ups can allow workers to retool or upskill without leaving the workforce," he said. 

Moreover, to facilitate the development of soft and hard skills among workers and create a more agile and adaptive workforce, the government continues to advocate for the passage of the Apprenticeship Bill, Lifelong Learning Bill, and Enterprise Productivity Act. 

Meanwhile, with the recent issuance of the Implementing Rules and Regulations of the%u202FTrabaho Para sa Bayan%u202F(TPB)%u202FAct, the government will start formulating the TPB plan, which will be the country's master plan for employment generation and recovery.