By means of Chloe Mari A. Hufana, Reporter
Unemployment in the Philippines fell to 4% in August as more female workers were hired in the service sector, the local statistics agency said on Tuesday.
Preliminary data from the Philippine Statistics Authority (PSA) Labor Force Survey shows that the unemployment rate fell from 4.7% in July and 4.4% in August last year.
This meant 2.07 million unemployed Filipinos, down 305,000 from July and 149,000 from a year earlier.
“One important factor that we saw in August 2024 is that many women entered the workforce and many of them were included in our labor market,” PSA Undersecretary and National Statistician Claire Dennis S. Mapa told a news briefing in mixed English and Filipino. .
About 1.03 million female workers joined the workforce, most of whom worked more than 40 hours a week, he added.
National Economic and Development Authority Secretary Arsenio M. Balisacan said Filipinos “are in for a potentially better holiday season as the latest labor survey showed promising labor market results.”
He said that accelerating the implementation of key infrastructure projects in energy, logistics and physical and digital connectivity is crucial to attract investment in higher value-added sectors such as manufacturing and agribusiness, and to stimulating labor productivity.
“With the government’s continued focus on attracting strategic investments and the timely implementation of key reforms, the Philippines is well positioned to translate its promising macroeconomic fundamentals into long-term prosperity for its workforce and economy,” it added he added.
The labor force participation rate among female Filipino workers rose to 54.7% from 52.4% in July and 52.9% in August last year. For male employees, the percentage fell from 76.3% a year ago to 74.8%. In July this was 74.5%.
The employment rate rose to 96% in August from 95.3% in July and 95.6% a year ago, equivalent to 49.15 million working Filipinos.
Women’s labor force participation rose to 95.3% from 94.8% in July and 95.1% a year earlier. The rate among male workers also rose to 96.5% from 95.6% in July and 96% in August last year.
INCREASED DIGITIZATION
The arrival of contract workers due to digitalization has led to more women being hired in August, said Leonardo A. Lanzona Jr., an economics professor at Ateneo de Manila University.
“In general, women are concerned with other factors that are not related to compensation,” he said in a Facebook Messenger chat. “Increased engagement with digital labor platforms allowed them to find additional income without leaving their home and their children.”
He said the hiring of more female workers is not seasonal, but a consequence of increasing digitalization and more flexible working hours, often at the expense of lower wages.
“These jobs offer very little protection and are often very unstable,” Mr Lanzona said. “In reality, people do not prefer these types of jobs, but are forced to accept them for lack of better options.”
“Improving working conditions can only be achieved if more options are available in domestic labor markets,” he added.
Benjamin B. Velasco, an assistant professor at the University of the Philippines School of Labor and Industrial Relations in Diliman, said the lower unemployment and underemployment rates and higher female labor force participation are “welcome news.”
“We just need to be aware of two things,” he told BusinessWorld via Messenger chat. “First, the fine print – working, means that you have worked at least one hour in the past week, and second, these positive numbers are only incidental or temporary changes.”
He also noted that women’s labor force participation was higher in June at 55.8% and in March at 55.1%. “So it’s certainly not a long-term trend,” he added, noting that while rates rise and fall slightly, the long-term interest rate is 50%.
“This means that half of working-age women are not working and are outside the labor force.”
Job quality improved slightly in August as the unemployment rate fell to 11.2% from 12.1% in July and to 11.2% a year earlier.
This meant that 5.48 million employed Filipinos were still looking for more work or longer working hours, compared to 5.78 million underemployed workers in July and 5.63 million a year earlier.
“The Employers’ Federation of the Philippines (ECoP) has emphasized that while declining unemployment rates are positive, there is a continued need to focus on creating high-quality jobs, especially for sectors such as retail and wholesale, which have significantly contributed to employment growth.” ECoP Governor Arturo C. Guerrero III shared this Business world in a Viber message.
“ECoP also advocates improving workers’ skills to meet industry demands, ensuring sustainable job growth and economic resilience,” he added.
“Let us hope that more jobs will open up for our compatriots as a result of the continued decline in inflation, which will strengthen the incomes of our companies and every family,” Treasury Secretary Ralph G. Recto said in a statement in mixed English and Filipino.
“The latest monetary policy easing following the slowdown in inflation will also spur further growth in consumption and investment, translating into more quality employment for Filipinos. More and better jobs will enable Filipino families to spend more, boosting our economy,” he added.
Mr Mapa said they expect employment figures to improve further this quarter as corporate profits and the economy get a boost from increased consumption.
“The expectation is that people will spend more because they will have more money from their thirteenth month,” Velasco said. “These are seasonal or occasional bumps, but unfortunately do not indicate a long-term shift in employment.”
“The structure of the economy has not changed, so we cannot expect any qualitative change in employment,” he added.
Jose Sonny G. Matula, president of the Federation of Free Workers, said in a Viber message that raising wages is crucial as Filipinos are likely to spend their extra money locally, effectively boosting the economy.
The average Filipino worker worked 40.7 hours per week in August, down slightly from 41.1% in July and 40.8 hours a year earlier.
The services sector remained the top employer with an employment rate of 63.3%, followed by agriculture at 19.3% and industry at 17.4%.
Bukluran ng Manggagawang Philippine National President Renecio “Luke” S. Espiritu said precarious working conditions and the lack of permanent employment impact women the most.
“They are the ones who have to take care of the home as unpaid reproductive labor, often resorting to unstable side jobs or turning to small family businesses to cope with rising prices and increasing their partner’s pittance,” he said in a Facebook Messenger. chat.