PH unemployment rate hit record-low 3.8% in ’24
The proportion of jobless Filipinos fell in December as the local labor market showed the kind of strength that is typical during the holiday season, bringing the average unemployment rate last year to the lowest level on record.
A nationwide survey of 11,163 households showed there were 1.63 million people who were jobless or out of business in December, lower than the 1.66 million unemployed in November, the Philippine Statistics Authority (PSA) reported on Thursday.
That translated to a jobless rate of 3.1 percent, easing from 3.2 percent.
For the entire 2024, the rate stood at 3.8 percent, the lowest reading in a data series dating back to 2005, when the PSA followed international recommendations by adopting a new definition of “unemployed persons”.
Last year’s average jobless rate was also better than the 4.4 percent registered in 2023.
At a press conference, National Statistician Claire Dennis Mapa said the Christmas shopping rush provided a wealth of seasonal jobs. That, in turn, encouraged more people to hunt for jobs.
Data showed there were 51.81 million individuals aged 15 years old and above who actively sought work in December, making up the country’s labor force.
That was equivalent to a labor force participation rate of 65.1 percent in December, up from the preceding month’s rate of 64.6 percent.
On a month-on-month basis, the agriculture sector, which added 735,000 jobs, posted the largest increase in employment despite the onslaught of powerful storms that hit the country late last year.
This was followed by the construction industry after recording a 583,000 increase in its headcount.
Interestingly, businesses engaged in wholesale and retail trade saw the biggest decline in employment in December after shedding 391,000 jobs on a sequential basis.
Manufacturing came next after posting a 305,000 drop in employment.
Underemployment
But for those who were able to find work in December, more of them ended up with jobs whose pay may not be enough to make ends meet.
Figures showed there were 5.48 million individuals that made up the country’s underemployed population, which counts employed persons who had to look for more jobs or extra working hours to augment their income.
That number was higher than the 5.35 million underemployed people in November.
This, in turn, translated to an underemployment rate of 10.9 percent in the final month of 2024, a tad higher than the 10.8 percent rate in November.
But overall, the proportion of underemployed Filipinos settled at 11.9 percent for the entire 2024, which was also the lowest since 2005 and an improvement from 12.3 percent in 2023.
Looking at other indicators, wage and salary workers –– a proxy for good quality jobs –– accounted for 63.1 percent of total employed persons in December, smaller than the 63.8 percent in the previous month. But it was nevertheless bigger than the 62.9 percentage share a year ago.
Analysts at Chinabank Research said the local job market “proved resilient” last year.
“A robust labor market would support income and spending growth, which could potentially boost investments and productivity and ultimately help the economy achieve its growth target this year,” Chinabank said.
