Philippine Labor Market Poised for Fourth-Quarter Recovery, Balisacan Says

The Philippine labor market is poised to turn a corner in the fourth quarter, with economic momentum picking up and public construction activities gradually gaining traction, according to Socioeconomic Planning Secretary Arsenio Balisacan. Speaking to reporters on the sidelines of the Luzon Economic Corridor forum, Balisacan noted that the recent deterioration in the labor market was primarily attributed to elevated inflation and its dampening effect on private consumption. However, with inflation showing signs of easing and the possibility of interest rate cuts on the horizon, private consumption is expected to rebound. This resurgence in consumer spending, coupled with the government's infrastructure development initiatives, is anticipated to drive job creation, particularly in the construction sector and its related industries. The Philippine economy grew by 5.9% year-on-year in the second quarter, slightly below analyst forecasts. The government remains committed to its annual growth target of 6.0% to 7.0%, focusing on stimulating domestic demand and improving the investment climate. A recovery in the labor market will be a crucial indicator for the overall economic objectives. Remittances from overseas Filipino workers (OFWs) continue to be a vital source of foreign exchange and a pillar of private consumption. An improvement in the domestic labor market could potentially reduce the reliance on overseas employment and foster more self-sustaining economic growth within the country.