As the Philippine labor market continues to surge ahead, the government is unwavering in its focus on elevating job quality and increasing income for Filipinos, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority (PSA) reported today (January 8) that the country’s unemployment rate has plummeted to a mere 3.2 percent in November 2024, down from 3.6 percent in the same month last year.
Remarkably, the latest Labor Force Survey revealed a sharp decline in the underemployment rate to 10.8 percent in November 2024 from 11.7 percent in November 2023, showcasing significant improvements in job quality and fewer workers seeking additional hours or employment.
“Our labor market remains robust, with consistently high employment rates and a significant reduction in underemployment. The next phase is to amplify business and employment opportunities, empowering more Filipinos to actively and productively contribute to our economy. Additionally, we will drive business upgrading and skills training programs to ensure these jobs offer competitive wages as our workers elevate their productivity by developing their human capital,” NEDA Secretary Arsenio M. Balisacan declared.
The labor force participation rate (LFPR) in November was 64.6 percent, slightly lower than the estimated 65.9 percent for November 2023. Youth LFPR decreased to 32.4 percent, down from 34.4 percent in the same month last year. Many young individuals cited schooling (402,000) as the reason for not participating in the labor force. Similarly, the female LFPR fell to 53.9 percent, down from 55.4 percent, primarily due to prime-working-age women prioritizing household responsibilities (445,000).
NEDA emphasized a comprehensive approach to ensuring a dynamic labor market. This strategy involves facilitating investments in quality job-generating sectors, enhancing skills and workforce mobility, and bolstering employment facilitation services.
“The government must facilitate the adoption of alternative work arrangements to accommodate workers’ evolving preferences while addressing organizations’ emerging demands. Additionally, the government is committed to accelerating programs that increase employability, particularly among the youth,” Balisacan stated.
Balisacan also underscored the crucial implementation of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act and the Enterprise-Based Education and Training (EBET) Framework Act, highlighting the government’s dedication to enhancing the business climate, attracting investments, generating employment, and equipping the workforce with the skills to meet the demands of emerging industries.
Acknowledging the challenges posed by calamities, particularly to agriculture, the Department of Social Welfare and Development (DSWD) will extend its cash-for-work and training programs, such as the Local Adaptation to Water Access (LAWA) and Breaking Insufficiency through Nutritious Harvest for the Impoverished (BINHI), to reach climate-vulnerable communities.
“The effective execution of the Building on Social Protection for Anticipatory Action and Response in Emergencies and Disasters Program will mitigate the impact of flooding, typhoons, and droughts by preparing communities and implementing protective measures before disasters strike,” Balisacan added. “The government complements these efforts by developing climate-resilient infrastructure and early warning systems to bolster agricultural productivity and build long-term resilience.”
Moreover, the DSWD, in collaboration with NEDA and the Department of Labor and Employment (DOLE), is currently devising a tool to better assess beneficiaries’ eligibility for the Ayuda Para sa Kapos ang Kita Program (AKAP) and minimize leakage or duplication of aid. A process monitoring and impact evaluation mechanism will also form part of the program’s implementation to ensure its efficiency and effectiveness.
“In alignment with these efforts, we remain steadfast in achieving our employment targets under the Philippine Development Plan 2023-2028. The 2024 Philippine Development Report, which NEDA will release this month, will guide our initiatives with evidence-based strategies to create quality jobs and sustain economic growth,” the country’s chief economic planner concluded.
