By Pierce Oel A. Montalvo
The nation’s unemployment rate increased to a two-month peak in October, affected by the barrage of typhoons that month, the Philippine Statistics Authority (PSA) disclosed on Friday.
Initial figures from the PSA’s Labor Force Survey (LFS) indicated the unemployment rate stood at 3.9% in October, up from the 3.7% rate in the prior month yet lower than the 4.2% recorded a year earlier.
This equated to 1.97 million unemployed Filipinos in October, higher than the 1.89 million in the preceding month but below the 2.09 million prediction for October last year.
The average unemployment rate was 4% as of the end of October, a reduction from 4.6% during the same timeframe last year.
Job quality also declined as the underemployment rate reached 12.6% in October, an increase from 11.9% last month and 11.7% a year prior.
The average underemployment rate was 12.1% over the ten months leading to October, down from 12.5% experienced from January to October 2023.
Meanwhile, the employment rate inched down to 96.1% in October, lower than the 96.3% reported in September but higher than the 95.8% recorded in the same month last year.
This represented 48.16 million employed Filipinos, a decrease of 1.71 million from 49.87 million in September, but an increase of 369,000 from 47.79 million in October 2023.
The services sector remained the leading employer in October with an employment rate of 61%, followed by agriculture at 21.2% and industry at 17.9%.
On average, Filipino workers logged 41 hours per week, surpassing the 40.3 hours in September but declining from the 41.2 hours averaged in October 2023.
Three successive typhoons impacted labor force participation in October, stated PSA Undersecretary and National Statistician Claire Dennis S. Mapa.
“It began during the first few days of October. Julian first, followed by Kristine and Leon. Thus, the typhoons somewhat influenced our compatriots’ engagement in the labor market,” Mr. Mapa mentioned in a news briefing mixing English and Filipino.
Agricultural damage from Typhoon Krathon (Julian) was approximated at P607.38 million, as indicated in a Department of Agriculture (DA) bulletin released on Oct. 7.
Similarly, the combined repercussions of Tropical Storm Trami (Kristine) and Super Typhoon Kong-rey (Leon) amounted to P7.83 billion in agricultural damages, according to information from the National Disaster Risk Reduction and Management Council.
“The series of typhoons that caused fatalities and destruction of homes, livelihoods, agriculture, and infrastructure unleashed its fury during this period,” commented Julius H. Cainglet, vice president of the Federation of Free Workers, in a Viber message.
“Currently, we face uncontrollable super typhoons, but in a few months, we should brace for the opposite extreme — heat stress from soaring temperatures.”
Despite the year-on-year improvement in employment rates, adverse weather conditions have resulted in job losses not only in the agriculture, forestry, and fishery sector but also across various service and manufacturing industries, explained University of Asia and the Pacific Senior Economist Cid L. Terosa, via email.
The fishing and aquaculture sub-sector suffered the most losses in October, shedding 213,000 workers year on year.
This was trailed by wholesale and retail trade (down 212,000); agriculture and forestry (down 183,000), and manufacturing (down 123,000).
“Contract-based workers in the trade and manufacturing sectors had to be let go due to work disruptions caused by unfavorable weather conditions,” Mr. Terosa remarked.
“Typhoons directly affect agriculture. However, as not all manufacturing processes are insulated from climate change effects, employment in this industry is surely set to decline soon,” asserted Mr. Cainglet.
Both unemployment and underemployment have amplified at a time when the economy should be gearing up for the Christmas season, noted Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Josua T. Mata.
Mr. Mata highlighted that the proportion of wage and salary earners dropped from 63.9% to 63.8%, while self-employment increased from 27.4% to 27.7%.
“High-value positions in manufacturing continue to contract. Agriculture and fishing are also losing jobs, likely due to the severe impacts of extreme weather.”
Mr. Terosa further indicated that many individuals settled for positions that would help them cope with the loss of stable, quality jobs, consequently elevating the underemployment rate.
Seasonal employment associated with the consumption of products and services related to Christmas will likely contribute to a slight rise in employment, remarked Mr. Cainglet.
“The upcoming election season could also provide temporary employment. The most significant impact on employment is expected around the second quarter of 2025,” Mr. Cainglet added.
Additionally, Mr. Terosa shared that December labor data is likely to reflect a modest improvement, particularly in the underemployment rate.
“The surge in business and commercial activities will probably necessitate additional part-time workers,” Mr. Terosa stated.
