PH jobless rate hits ‘pandemic’ level; climate big factor
Intense downpours that swamped farms and paralyzed roads pushed the Philippines’ jobless rate in July to a pandemic-era high, laying bare the local labor market’s vulnerability to climate shocks.
A nationwide survey of 178,820 households found that 2.59 million people were unemployed or out of business, up sharply from 1.95 million in June, the Philippine Statistics Authority (PSA) reported on Wednesday.
That surge drove the unemployment rate to 5.3 percent, from 3.7 percent a month earlier. The figure was the worst since June 2022, when the country was still clawing its way back from COVID-19 pandemic’s economic devastation.
National Statistician Claire Dennis Mapa blamed the spike on the late-July monsoon rains, which had inundated roads and fields. The sobering data landed as the government investigates alleged corruption in flood control projects—underscoring how both climate disasters and governance failures are washing away jobs.
Economic Planning Secretary Arsenio Balisacan warned that the government must “intensify efforts to enhance climate resilience and improve workforce agility” if the labor market is to be future-proofed.
“This must be complemented by expanded rural infrastructure, improved digital connectivity and increased access to training opportunities,” Balisacan said.
Job quality
Mapa noted that the job losses were concentrated in “weather-sensitive” industries. Agriculture posted the steepest year-on-year decline at 1.38 million, followed by retail (-897,000), fishing (-173,000) and construction (-147,000).
The job shedding coincided with a decline in the number of job seekers. The labor force participation rate—a key measure of the share of the working-age population that is employed or actively looking for work—fell to 60.7 percent in July from 65.7 percent in June.
Those who dropped out of the workforce cited schooling, household duties, unavailability of work and bad weather as top reasons. But even among those who found work, many faced precarious employment conditions.
The underemployment rate—which tracks the share of employed individuals seeking additional hours or income—rose to 14.8 percent, the highest in two years or since July 2023’s 15.9 percent.
In a commentary, economists at Chinabank Research said the next round of jobs data may show improvements due to better weather.
“Additionally, employment will likely benefit from the expected seasonal uptick in demand as the holiday season approaches,” they said.
“Looking ahead, if the soft labor force data at the start of the third quarter translate to weaker output growth, it could prompt the central bank to consider cutting interest rates,” they added.
