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By Chloe Mari A. Hufana, Reporter
THE PHILIPPINES’ jobless rate fell to 3.9% in August, propelled by renewed employment in the agriculture and construction fields, the Philippine Statistics Authority (PSA) disclosed on Wednesday.
The August unemployment rate is an enhancement from the three-year peak of 5.3% in July, and 4% in August 2024, preliminary Labor Force Survey statistics indicated.
The count of unemployed Filipinos decreased to 2.03 million in August from 2.59 million in July and 2.07 million a year earlier.
PSA Undersecretary and National Statistician Claire Dennis S. Mapa ascribed the advancement in the labor market in August to the recovery in certain sectors that faced impacts from typhoons in July.
“What we noted was that the largest drop in July occurred in agriculture, retail trade, and construction — but they have now rebounded,” he conveyed during a news briefing in Filipino.
“Thus, the job losses in July were deemed temporary, and those who were affected have returned. Essentially, these are the sectors that have bounced back,” he added.
For the initial eight months, the unemployment rate was at 4.1%, slightly above the 4% rate from a year ago.
In August, the agriculture and forestry industry added 1.35 million jobs since July, a month plagued by severe weather. This elevated the total workforce in this sector to 8.73 million, up from 7.38 million the previous month. Year on year, this industry welcomed 300,000 workers in August.
The Philippines faces more tropical storms yearly than any other region, averaging 20 storms annually. As per the national meteorological agency, typhoon activity peaks between July and October, accounting for nearly 70% of all cyclone formations during this timeframe.
Labor Secretary Bienvenido E. Laguesma applauded the positive employment data, asserting the government’s commitment to “future-proofing” and “weather-proofing” jobs.
“We aspire to maintain these encouraging employment statistics through stronger collaboration and partnerships with business entities and the private sector, along with government agencies and departments,” he stated via Viber.
UNDEREMPLOYMENT DECLINES
Meanwhile, underemployment reduced to 10.7% in August from 11.2% a year prior and 14.8% the previous month.
This was equivalent to 5.38 million Filipino workers desiring additional working hours or an extra job in August.
Among those underemployed in August, 62.4% worked fewer than 40 hours per week, whereas 37.6% worked 40 hours or more each week.
For the January-to-August timeframe, the underemployment rate climbed to 12.7% from 12.1% a year ago.
Additionally, the employment rate increased to 96.1% in August from 94.7% in July, with the total employed individuals reaching 50.1 million.
This brought the average employment rate for the eight-month period to 95.9%, down from 96% a year earlier.
Wage and salary workers comprised 64.4% of employed individuals, followed by self-employed persons without paid staff (27%), unpaid family workers (7%), and proprietors in their family-run farm or business (1.6%).
Among wage and salary employees, those working for private firms constituted 78%, followed by those employed in government or government-affiliated entities (14.1%).
The labor force participation rate rose to 65.1% in August from 60.7% in July, corresponding to 52.13 million Filipinos aged 15 and above either employed or seeking work.
PSA data revealed the service sector continued to be the largest employer in August, accounting for 61.5% of total jobs, trailed by agriculture at 20.4% and industry at 18.1%.
Wholesale and retail trade, agriculture and forestry, and construction were the leading sub-sectors.
On an annual basis, construction added 540,000 workers, followed by fishing and aquaculture (448,000), administrative and support service activities (307,000), agriculture and forestry (300,000), and other service activities (239,000).
Conversely, wholesale and retail trade; repair of motor vehicles and motorcycles recorded the most significant annual drop in workforce by 788,000, succeeded by public administration and defense, mandatory social security (-220,000); education (-151,000); human health and social work activities (-134,000); and real estate activities (-75,000).
Youth employment also improved, with the employment rate for those aged 15 to 24 increasing to 88.3% from 81.9% in July, as reported by the local statistics agency.
On average, employees worked 41 hours weekly, up from 40.7 hours in August last year.
RISK OF INCLEMENT WEATHER
Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan urged for sustained investment in workforce development, infrastructure, and digitalization — particularly for micro, small, and medium enterprises — to enhance resilience in susceptible sectors.
“Our goal is to bolster resilience in sectors at risk from disruptions, such as retail trade and agriculture, by prioritizing enhancements in logistics, infrastructure, digital technology, and workforce development,” he highlighted.
“The government is also intensifying its investments in climate-resilient infrastructure and proactive strategies, alongside prompt emergency employment programs to aid workers impacted by disruptions.”
In a report, Chinabank Research stated that the threat of adverse weather conditions persists, continuing to jeopardize job prospects, especially in agriculture and fisheries, retail trade, and construction.
“On a more optimistic note, seasonal demand linked to the upcoming holidays should lend some support to the labor market this quarter,” it further stated.
University of the Philippines School of Labor and Industrial Relations Benjamin B. Velasco indicated that historical data reveals an increase in employment as the holiday season approaches.
“However, it may still be hindered by the effects of climate-related events on vulnerable sectors like agriculture,” he commented via Facebook Messenger.
Mr. Velasco noted that the decline in unemployment and rise in labor force participation are encouraging trends as more individuals previously out of work or disheartened from working are now employed.
“Hopefully, a greater number of them are in full-time positions and quality jobs, as indicated by [a] slight reduction in the underemployed.”
PSA’s Mr. Mapa mentioned that the labor market in September might have been influenced by the array of typhoons and the recent 6.9-magnitude earthquake that struck southern Philippines.
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