PH jobless rate jumped in October to 5%
Unemployment in the Philippines spiked in October, reversing recent gains despite expectations of seasonal hiring ahead of the holidays and marking its second-highest level in three years.
Latest data from the Philippine Statistics Authority (PSA) reported that 2.54 million Filipinos were out of work in October, jumping from 1.96 million in September.
This pushed the jobless rate up to 5 percent from the previous month’s 3.8 percent, putting it just slightly below the three-year high recorded in July, when unemployment reached 5.3 percent or 2.59 million people.
In September, seasonal hiring gave a slight boost to employment ahead of the “ber” months, but this momentum failed to carry into October.
Leonardo Lanzona, a labor economist at Ateneo de Manila University, attributed the slowdown to the widening investigation into the flood control corruption scandal and recent economic developments, including a four-year low of 4 percent in gross domestic product growth.
“Obviously, this can be attributed to the brewing flood control scandal and reflected in the economic slowdown. The decline in both public and private investments due to the corruption scandal has led to layoffs,” he said.
When asked whether the back-to-back typhoons during the month affected the labor market, Lanzona said the corruption scandal overshadowed any impact.
“Over the years, we have been getting typhoons. Despite these disruptions, employment grew during the holiday months,” Lanzona said.
“In effect, the data this year, in some way, creates some experimental measure of how corruption affects the labor market. This seems to be the only factor that differentiates the employment picture this year from that in other years,” he added.
Labor market
National Statistician Claire Dennis Mapa said the rise in joblessness can be linked to the year-on-year increase in the labor force participation rate, noting that not all those entering the labor force have been “absorbed by their employers.”
Chinabank Research echoed this view, saying the unemployment rate “settled higher than usual in October, as jobs fell short to accommodate new participants in the labor market.”
The labor force participation rate in October stood at 63.6 percent, up from 63.3 percent in the same month last year, bringing the total labor force to 51.16 million Filipinos. Month-on-month, however, the rate slipped from 64.5 percent.
The number of employed persons also fell, with the employment rate easing to 95 percent—or 48.62 million Filipinos with jobs—from 96.2 percent in the previous month and 96.1 percent a year ago.
On the bullish side, wage and salary workers made up more than half of all employed Filipinos, accounting for 64.2 percent—or 31.2 million people—most of whom work in private establishments.
Finance Secretary Frederick Go said this reflects “strengthening labor market conditions.”
“This is encouraging news as it reflects the government’s continued commitment to create quality jobs that empower Filipinos and strengthen the economy,” Go said.
Meanwhile, underemployment rose month-on-month to 12 percent, or 5.81 million, from September’s 11.1 percent or 5.52 million. Compared with last year, however, the rate declined from 12.6 percent, or 6.08 million.
For its part, the Department of Economy, Planning and Development (DepDev) said it would continue to sustain gains in job quality and support long-term labor market resilience by leveraging landmark policies for investments and job creation.
“Guided by these plans, the government will boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services,” DepDev Secretary Arsenio Balisacan said.
