PH jobless rate eased to 5.1% in February
The country’s labor market saw modest relief in February after the unemployment rate eased from the pandemic-era high recorded in the previous month, the Philippine Statistics Authority (PSA) reported on Wednesday.
The number of jobless Filipinos declined to 2.66 million in February, translating to a 5.1-percent unemployment rate—improving from 5.8 percent or 2.96 million in January, which was then the highest since June 2022.
Still, the latest print remained among the highest in the postpandemic period and was significantly worse than the 3.8 percent or 1.94 million recorded in the same month last year.
“February saw a modest improvement from January, but conditions remained markedly weaker year on year. Job gains were largely broad-based, though transport and logistics workers face rising downside risks,” economists at Chinabank Research said, referring to the impact of the latest Middle East crisis that has since rippled across the Philippine economy.
Driving the decline in unemployment was the rise in the labor force participation rate to 63.8 percent, equivalent to 52.09 million Filipinos, from 62.3 percent or 50.89 million in January.
Employment levels edged up to 94.9 percent, or about 49.43 million Filipinos, from 94.2 percent or 47.94 million in the previous month.
Month on month, gains were led by the wholesale and retail trade sector, which added 658,000 workers to reach 9.9 million. This was followed by agriculture and forestry, up by 380,000 to 7.9 million, and accommodation and food service activities, which grew by 361,000 to 3.16 million.
Meanwhile, the underemployment rate declined to 11.8 percent, with around 5.84 million employed Filipinos seeking additional work or longer hours to boost their income. This is down from 13.2 percent or 6.35 million in January.
Labor conditions still weak
Despite these improvements, labor conditions continue to show signs of fragility, Chinabank said, warning that the energy shock triggered by the Middle East war could soon spill over into the job market.
“The full impact of the recent oil price shock has yet to be captured in the latest labor force data. Nonetheless, we expect conditions to deteriorate more noticeably from March onward, with job losses likely to surface first among transport and logistics workers, given their direct exposure to higher fuel costs,” the economists said.
“Should elevated energy prices persist, spillover effects to related services sectors will likely follow,” they added.
The transport sector, which bears the brunt of rising fuel costs, is seen as particularly vulnerable, especially as some jeepney drivers have already stopped operating and are seeking alternative sources of income.
Citing the Department of Energy, Chinabank said the top users of petroleum products are transport (52.9 percent), wholesale trade (10.8 percent) and manufacturing (8.9 percent).
Further, underemployment could reverse its gains in the coming months as inflation has already accelerated to a 20-month high of 4.1 percent, eroding purchasing power and potentially pushing more Filipinos to seek additional work.
The Philippines has since been placed under a state of national energy emergency, prompting government agencies to roll out measures to cushion the impact of the crisis.
“Recent developments highlight the urgency to strengthen the resilience of our labor market. We must ensure that our policies and programs respond effectively to rapidly changing global conditions, especially for affected and displaced Filipino workers here and abroad,” Economic Planning Secretary Arsenio Balisacan said in a statement.
”The measures aim to safeguard the national interest by mitigating the impact of the conflict and ensuring the stability or continuity of essential services, sustaining economic activity, and supporting incomes amid rising fuel costs,” he added.
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