Unemployment Eases to 4.7% in April Amid Underemployment Concerns

Unemployment Eases to 4.7% in April Amid Underemployment Concerns

The Philippine Statistics Authority reported on June 9 that unemployment in the country eased to 4.7% in April, equivalent to around 2.41 million jobless Filipinos. This is a slight improvement from March's 5% or 2.58 million Filipinos without work, which means around 170,000 fewer people were unemployed in April compared to March. Despite this, underemployment concerns have increased, with the rate jumping to 15.2% or 7.41 million Filipinos, higher than March's 12.3% or 6.03 million underemployed individuals.

National Statistician Dennis Mapa noted that the accommodation and food services sector added 510,000 jobs to the economy year-on-year, particularly in mobile restaurants, which have become popular alternatives to traditional dining. The manufacturing sector also added around 259,000 jobs, with a focus on semiconductors and food production, reflecting the country's shift towards high-tech and high-value industries. The transport and storage sector added around 189,000 jobs, especially in land transport like jeepneys and ride-hailing services, which have become ubiquitous in urban areas.

However, underemployment within these sectors grew as drivers worked shorter hours, affecting around 677,000 individuals. The wholesale and retail trade industry shed the most jobs in April, losing around 450,000 jobs year-on-year due to lower incomes and price increases, which have severely impacted consumer spending. Mapa attributed this to the fact that lower incomes and higher prices have discouraged consumers from spending, leading to job losses in the sector.

Another sector hit by high fuel prices is the fishing and aquaculture industry, which lost 155,000 jobs. Higher diesel costs have discouraged fishermen from making their trips, resulting in significant job losses. Labor Secretary Francis Tolentino directed the Department of Labor and Employment to continue improving pathways to employment, emphasizing the need to equip workers with industry-relevant skills to compete in the modern job market. The Department of Economy, Planning, and Development attributed the improving employment conditions to livelihood initiatives across the country, including the Unified Package for Livelihoods, Industry, Food, and Transport (UPLIFT) framework, which aims to provide support to vulnerable sectors and promote economic growth.

DEPDev Secretary Arsenio Balisacan noted that while job demand softened in sectors like agriculture and trade, the government will focus on broadening market access and attracting investments in emerging industries like artificial intelligence and high-growth sectors, which have shown promise in creating new job opportunities. Balisacan said, 'We are working to broaden market access and attract investments in emerging industries, including artificial intelligence and other high-growth sectors, through strengthened economic partnerships and initiatives such as the Luzon Economic Corridor.'

Context

The Philippine job market has been facing challenges in recent months due to the Middle East crisis, which has led to a significant decline in remittances from overseas Filipino workers. The government has been implementing initiatives to cushion the impact of this crisis, including the UPLIFT framework and the reconvening of the inter-agency El Niño Task Force to safeguard agricultural jobs. The government is working to mitigate the effects of the economic downturn by promoting economic growth and creating new job opportunities in emerging industries like artificial intelligence and high-growth sectors.