Philippines Unemployment Rate Ticks Up to 4.8% in May

MANILA, Philippines — Unemployment went up in May from the previous month while underemployment declined, according to the Philippine Statistics Authority (PSA). In a press briefing yesterday, National Statistician Dennis Mapa said the unemployment rate increased slightly to 4.8 percent in May from 4.7 percent in the previous month. It was also higher than the 3.9 percent recorded in May last year. This translated to 2.5 million unemployed Filipinos in May, higher than the previous month’s 2.41 million and the 2.03 million in May 2023. The data is based on the results of the PSA’s Labor Force Survey. Meanwhile, the employment rate declined to 95.2 percent in May from the previous month’s 95.3 percent and 96.1 percent in May last year. There were 49.63 million employed Filipinos in May, up from the previous month’s 48.89 million, but down from 50.29 million in May last year. In terms of underemployment or those looking for an additional job or work hours, the rate declined to 12.2 percent in May from the previous month’s 15.2 percent and 13.1 percent in May 2023. There were 6.04 million underemployed Filipinos in May, lower than the previous month’s 7.41 million and the 6.60 million in the same month last year. The labor force participation rate was recorded at 63.8 percent in May, higher than the previous month’s 62.7 percent, but lower than the 65.8 percent registered in May 2023. This translates to 52.13 million Filipinos aged 15 years and over who were in the labor force in May, up from the previous month’s 51.30 million, but down from 52.32 million in May 2023. Philippine Institute for Development Studies senior research fellow John Paolo Rivera said in a Viber message that the latest data presents a mixed picture of the labor market. He said the improvements in employment and underemployment suggest that labor demand remains relatively resilient despite a slower economy. As for the year-on-year increase in unemployment, he said this shows that job creation has not kept pace with the growing labor force. “The challenge is no longer just creating jobs, but creating enough quality and productive jobs that provide stable incomes,” he said. To sustain employment growth, he said more investments, faster infrastructure spending and continued support for sectors with high job-generating potential such as manufacturing, tourism, construction and modern services are needed.