By Chloe Mari A. Hufana, Reporter
THE PHILIPPINES’ unemployment percentage in January climbed to its peak level in six months, as recruitment decreased following the festive season, the statistics agency reported on Thursday.
Initial findings from the Philippine Statistics Authority’s (PSA) Labor Force Survey revealed the unemployment rate at 4.3% in January, marginally lower than 4.5% a year prior but increased from 3.1% in December.
This meant there were 2.16 million unemployed Filipinos in the initial month of the year, unchanged from January 2024 but greater than the 1.63 million recorded in December 2024.
January experienced the highest unemployment rate since 4.7% in July 2024.
During a press conference, PSA Assistant Secretary Divina Gracia L. Del Prado mentioned that increased unemployment is a common occurrence in January.
“If you observe the trend, it consistently happens — employment surges in December, and then abruptly in January, it declines due to a lack of demand,” she conveyed in mixed English and Filipino.
The Bicol Region reported the highest unemployment rate at 6.5%, while the Zamboanga Peninsula recorded the lowest rate at 2.3%.
“While we appreciate this development, we also recognize that these newly created jobs are classified as vulnerable. Hence, our approach remains straightforward: to continue fostering job creation by promoting a vibrant and investment-friendly economy while equipping our workforce for high-growth and emerging industries that provide quality, well-compensated employment,” National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan stated in a press release.
In contrast, underemployment decreased to 13.3% in January, representing 6.47 million, down from 13.7% in the comparable month of the previous year.
However, the underemployment in January — the ratio of those already employed but still seeking additional work or longer hours — increased from 10.9% in December.
This was also the highest rate recorded in nine months or since April 2024 when it reached 14.6%.
“The sector with the largest share of underemployment is agriculture and forestry. Agriculture constitutes 44.5% of the total underemployment. Almost half of the workforce in this sector identifies as underemployed,” Ms. Del Prado mentioned in Filipino.
Soccsksargen (South Cotabato, Cotabato, Sultan Kudarat, and Sarangani) held the highest underemployment rate at 29.5%, while the Davao Region recorded the lowest at 3.3%.
The LFPR represents the proportion of the population that is economically active.
“This suggests robust employment growth in comparison to the previous year… due [to] increased monetary flow in the economy resulting from election expenditures by candidates and the influx of aid,” University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco shared with BusinessWorld via Facebook Messenger.
The youth LFPR increased to 31.8% in January from 29.7% in January 2024.
Finance Secretary Ralph G. Recto is hopeful that the participation of youth in the labor market will continue to rise amidst government initiatives aimed at “capitalizing on the country’s demographic sweet spot.”
“We have a comprehensive strategy to maintain our vibrant labor market, emphasizing education and workforce development, infrastructure, and investments. We are heavily investing in both intellectual and physical infrastructure,” Mr. Recto mentioned in a statement.
PSA data also illustrated that the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) had the highest LFPR at 72.5%, while the Bicol Region had the lowest at 59.1%.
CONCERNS
Federation of Free Workers (FFW) President Jose Sonny G. Matula expressed that the latest job statistics pose serious concerns.
“Unemployment, underemployment, and precarious employment arrangements continue to escalate, highlighting the urgent requirement for economic reforms that will provide secure, high-remuneration jobs while ensuring businesses can maintain growth,” he conveyed to BusinessWorld via a Viber chat.
PSA data indicated that the employment rate, representing the ratio of employed individuals to the overall labor force, stood at 95.7% in January. This was slightly above the employment rate of 95.5% for the same month in 2024.
Zamboanga Peninsula exhibited an employment rate of 97.7%, the highest nationwide, whereas the Bicol Region had the lowest at 93.5%.
The services sector remains the predominant employer, accounting for 61.6% of jobs, followed by agriculture and forestry (21.1%) and industry (17.2%).
Most positions in the services sector are contractual, seasonal, or unstable, Mr. Matula pointed out.
“Numerous workers are ensnared in labor-only contracting arrangements, job orders (JOs), or contracts of service (COS) lacking job security, and short-term employment cycles that provide no long-term stability,” he remarked.
Bukluran ng Manggagawang Pilipino President Renecio S. Espiritu, Jr. indicated that the rising underemployment rate reveals that Filipinos are grappling with inadequate wages or positions that do not align with their qualifications.
“Workers in vital sectors such as manufacturing continue to dwindle due to rampant contractualization and union suppression,” Mr. Espiritu stated in Filipino.
He further emphasized the “very low” LFPR for women at 52.9%.
“This indicates that we are either squandering a significant segment of our workforce or failing to acknowledge the reproductive labor women contribute — both scenarios are simply intolerable,” Mr. Espiritu expressed.
Meanwhile, agriculture and forestry marked the most significant annual growth in jobs during January, adding 883,000 positions. This was succeeded by wholesale and retail trade, repair of motor vehicles and motorcycles (850,000); accommodation and food service activities (533,000); and transportation and storage (141,000).
Conversely, manufacturing lost 209,000 jobs in January, the most among subsectors. The professional, scientific, and technical activities sector reduced 58,000 jobs, followed by arts, entertainment, and recreation (29,000), and construction (11,000).
Wage and salary workers comprised 63% of the workforce in January, followed by self-employed individuals without paid employees (28.2%), and unpaid family workers (6.6%). The smallest segment consisted of employers in family-run farms or businesses at 2.2%.
The average working hours stood at 40.4 hours per week in January, down from the average of 42.2 hours a year earlier.