- The Philippines’ unemployment rate edged higher in September as the number of people entering the labor force outpaced employment gains, leaving more Filipinos without work despite improvements in underemployment.
- The Philippine Statistics Authority (PSA) reported that the jobless rate rose to 5.4% in September from 5.3% in August. This translated to 2.86 million unemployed Filipinos, up from 2.77 million a month earlier.
- The increase followed a brief improvement in August, when unemployment declined for the first time after three consecutive months of increases.
The Philippines’ unemployment rate edged higher in September as the number of people entering the labor force outpaced employment gains, leaving more Filipinos without work despite improvements in underemployment.
Unemployment rises as more Filipinos enter labor force
The Philippine Statistics Authority (PSA) reported that the jobless rate rose to 5.4% in September from 5.3% in August. This translated to 2.86 million unemployed Filipinos, up from 2.77 million a month earlier.
The increase followed a brief improvement in August, when unemployment declined for the first time after three consecutive months of increases.
More Filipinos joined or rejoined the labor force during the period. The labor force participation rate climbed to 64.5% from 64% in August, equivalent to 53.19 million people from 52.56 million.
Underemployment eases as employment rate holds steady
Meanwhile, the underemployment rate eased to 11% from 11.9%, indicating fewer employed Filipinos were looking for additional work or longer hours to earn more.
The number of underemployed workers fell to 5.56 million from 5.9 million in August.
The employment rate, meanwhile, was nearly unchanged at 94.6% from 94.7%. However, the number of employed Filipinos increased to 50.32 million from 49.79 million.
Construction, retail trade shed workers
Year on year, construction recorded the largest employment decline, shedding 271,000 workers. The wholesale and retail trade industry also lost 101,000 workers over the same period.
Weaker construction activity and subdued consumer spending weighed on employment in these sectors, with elevated material costs, higher borrowing expenses, and slower infrastructure spending adding pressure to the construction industry.
Inflation and holiday demand shape labor outlook
The September labor figures also came as inflation accelerated to 7.2%, its highest level in three years, amid unfavorable weather conditions and rising oil prices.
The holiday season could provide additional employment opportunities in the coming months, particularly as businesses prepare for increased consumer activity. However, the latest figures show that job creation continues to face pressure as more Filipinos seek work.