By means of Karis Kasarinlan Paolo D. Mendoza
THE PHILIPPINE unemployment rate rose to one The highest level in four months in May, while job quality improved to the best level since 2005, the Philippine Statistical Authority (PSA) said on Monday.
Preliminary data from the PSA’s Labor Force Survey (LFS) shows the unemployment rate rose to 4.1% from 4% in April as the labor force grew. However, it was lower than the 4.3% recorded in May last year.
May saw the highest unemployment rate in four months, or since January’s 4.5%.
This translated to 2.11 million unemployed Filipinos in May, up by 65,000 from 2.04 million in April.
Year on year, the number of unemployed Filipinos fell by 61,000 from 2.17 million in May 2023.
In the first fiFor five months a year, the unemployment rate averaged 4%, lower than the average of 4.6% a year ago.
PSA Undersecretary and National Statistician Claire Dennis S. Mapa said the larger labor force was the main contributor to the rise in unemployment.
“One of the reasons why unemployment has risen is the increase in the number of participants in the labor market. More than half a million people joined the workforce, but not all of them found work,” he said in mixed English and Filipino at the news conference.Fon Monday.
PSA data showed that 50.97 million people entered the labor force in May, an increase of 575,000 compared to 50.4 million in April.
On an annual basis, the working population increased by 544,000, compared to 50.43 million in May 2023.
This translated into a labor force participation rate (LFPR) of 64.8%, up from 64.1% in the previous month, but down from 65.3% a year ago. To date, the LFPR has averaged 64%.
WORK QUALITY IMPROVES
Meanwhile, job quality improved in May as the underemployment rate fell to 9.9%, down from 14.6% in April and 11.7% in May last year.
May was the lowest unemployment rate since the start of the revised series, almost two decades ago.
The number of underemployed Filipinos — those who want longer work hours or an additional job — stood at 4.82 million in May, down 2.22 million month over month and 846,000 year over year.
At the end of May, the average unemployment rate was 12.3%.
“A substantial amount that contributed to the decline in underemployment came from those in the visibly underemployed category or those working less than 40 hours per week. There were those who said they had a second job, so they were content with working less than 40 hours in their primary job,” Mr Mapa said.
He also said that the decline in underemployment is seen in certain subsectors such as wholesale and retail trade, agriculture and forestry, construction, manufacturing, other service activities, transport and warehousing, and accommodation and food service activities.
“Notably, underemployment fell dramatically in May, indicating better employment quality and skills matching, despite the slight increase in unemployment,” said Robert Dan J. Roces, chief economist at Security Bank Corp., in an email.
In contrast, the labor force participation rate fell from 96% in April to 95.9%, but is still higher than 95.7% in May 2023.
This equated to 48.87 million working Filipinos, up 510,000 from 48.36 million in April, and 605,000 from 48.26 million in May last year.
Labor participation averaged 96% in the January-May period, compared to 95.4% a year ago.
In May, the largest monthly job losses occurred in accommodation and catering activities, with 322,000 jobs lost, bringing the total to 2.43 million. Job losses were also seen in fishing and aquaculture (from 241,000 to 1.2 million) and in administrative and support services (from 135,000 to 2.42 million).
Meanwhile, month-on-month employment increases were recorded in agriculture and forestry (up 610,000 to 8.96 million), construction (up 391,000 to 5.09 million), and public administration and defense (up 309,000 to 3.13 million).
Year after year, agriculture and forestry lost 1.02 million jobs, bringing the total to 10.17 million. There were also annual job losses Ffisheries and aquaculture (from 543,000 to 1.2 million) and arts, entertainment and recreation (from 178,000 to 475,000).
On the other hand, the construction sector posted the largest annual job growth, adding 745,000 jobs to 5.09 million. SigniFSignificant job growth was also observed in administrative and support services (up 371,000 to 2.42 million) and manufacturing (347,000 to 3.85 million).
“The construction, administrative services and manufacturing sectors showed strong growth, offsetting losses in other areas. Given these mixed signals, future trends in unemployment are uncertain, but could stabilize or decline if positive sector growth continues,” Roces said.
He expects unemployment to continue Ffluctuate, although “not as extreme” as the shift from April to May.
“In the coming months, La Niña could cause business disruptions that could negatively impact employment figures,” Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in an email.
Sentro ng mga Nagkakaisa of Progresibong Manggagawa Secretary General Josua T. Mata said the government’s job generation program is lacking.
“The government clings to an outdated belief that its role is merely to facilitate the private sector, and resists the idea of a robust public employment program that guarantees jobs for those who want them.” to work,” he said in a Viber message.