The Philippines’ unemployment rate fell to 3.7% in September, its lowest in recent months. Still, a significant rise in underemployment suggests that many Filipinos are grappling with financial instability, the Philippine Statistics Authority (PSA) reported Wednesday.
Driven by an influx of women and youth into the workforce ahead of the holiday season, the unemployment rate dropped from 4% in August, marking an improvement from 4.5% a year ago. This translates to 1.89 million unemployed Filipinos, down by 370,000 from the previous year. However, underemployment — the portion of employed individuals seeking additional work or longer hours — rose to 11.9% from 10.7% in September 2023, affecting approximately 5.94 million people.
Labor Market Trends Show Growth, But Quality of Jobs Remains a Concern
The PSA’s report shows a labor force participation rate increase to 65.7% in September, with female workers comprising a significant portion of new entrants. Finance Secretary Ralph Recto sees this as a positive trend, noting that more Filipinos are finding work, especially in retail and services, as the holiday season nears.
Yet, the quality of employment remains an issue. Undersecretary and National Statistician Claire Dennis S. Mapa highlighted that more Filipinos are underemployed despite gains in employment numbers. Experts suggest that many workers are relegated to part-time or temporary roles, which may not provide sufficient income.
Assistant Professor Benjamin Velasco from the University of the Philippines explained, “The rise in underemployment suggests that while people are finding jobs, these are often freelance or temporary positions, pushing them to seek additional work.”
Vulnerabilities Persist in Key Sectors Despite Employment Gains
Although the services sector leads in employment with over 31 million workers, other vital areas face declines. Sectors like accommodation, agriculture, and construction saw notable job reductions, raising concerns among labor advocates. Federation of Free Workers President Jose Sonny Matula warned that this trend could signal deeper economic issues, where short-term contracts dominate, and many workers cannot secure full-time positions.
“Rising underemployment highlights the income insufficiency faced by workers,” Matula said. “Many are forced to take on extra jobs just to meet their basic needs, putting their health at risk.”
The Philippine government aims to address these challenges through the upcoming Trabaho Para sa Bayan Plan, a decade-long roadmap designed to enhance job quality and strengthen labor market policies.
Jaja has a degree in journalism and took classes in international law and business communication. Her career spans roles at prominent international media outlets, including International Business Times, Celebeat and Delightful Philippines. As a news editor, Jaja covered a wide range of beats, including legal, business, economy, cryptocurrency, personal finance, gaming, technology, and entertainment.