{"id":10856,"date":"2025-04-09T04:55:07","date_gmt":"2025-04-09T02:55:07","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=10856"},"modified":"2025-04-09T04:55:07","modified_gmt":"2025-04-09T02:55:07","slug":"unemployment-rate-hits-lowest-point-in-two-months","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/04\/09\/unemployment-rate-hits-lowest-point-in-two-months\/","title":{"rendered":"Unemployment Rate Hits Lowest Point in Two Months"},"content":{"rendered":"

<\/p>\n

By Chloe Mari A. Hufana, <\/b>Correspondent<\/i><\/p>\n

THE UNEMPLOYMENT RATE dipped to its lowest in two months in February, as an increasing number of Filipinos entered the workforce in anticipation of the summer period and midterm elections, according to the statistics bureau on Tuesday. <\/span><\/p>\n

Concurrently, the underemployment rate \u2014 a measure of job quality \u2014 declined to a nine-month low of 10.1%.<\/p>\n

Initial findings from the Philippine Statistics Authority\u2019s (PSA) Labor Force Survey (LFS) indicated that the unemployment rate registered at 3.8%, down from 4.3% in January.<\/span><\/p>\n

<\/a><\/p>\n

In comparison to last year, this figure was slightly greater than 3.5% a year earlier.<\/p>\n

This meant that there were 1.94 million unemployed Filipinos in the second month of the year, fewer than the 2.16 million recorded in January 2025. Year on year, it exceeds the 1.8 million unemployed Filipinos noted in February 2024.<\/span><\/p>\n

For the initial two months of 2025, the unemployment rate averaged 4%, the same as the previous year.<\/p>\n

\u201cWe are already observing an increase in employment in February, primarily attributed to political organizations recruiting individuals, which accounts for around 41,000 jobs. This trend is likely to persist until May, creating a seasonal effect,\u201d PSA Undersecretary and National Statistician Claire Dennis S. Mapa mentioned in a news briefing delivered in a mix of English and Filipino.<\/p>\n

In February, the employment rate increased to 96.2%, equating to 49.15 million, up from 95.7% in January, representing 48.49 million employed Filipinos.<\/p>\n

Year over year, this was slightly less than the 96.5% recorded in February 2024, which translated to 48.95 million Filipinos with jobs.<\/p>\n

Mr. Mapa pointed out that election-related jobs are not significant compared to \u201ccore sectors\u201d such as the service industry and wholesale and retail trade, particularly regarding food and accommodation.<\/p>\n

The campaign season for the May 12 elections commenced in February.<\/span><\/p>\n

Simultaneously, job quality showed signs of improvement in February as the underemployment rate decreased to 10.1% from 12.4% in the same month last year and 13.3% in January.<\/span><\/p>\n

The number of underemployed Filipinos \u2014 individuals desiring longer hours or additional employment \u2014 dropped to <\/span>4.96 million from 6.08 million the previous year <\/span>and 6.47 million in January.<\/span><\/p>\n

For the two-month duration, underemployment averaged 11.7%, down from 13% a year prior.<\/p>\n

\u201cWhat is significant here is the visible underemployed, those working less than 40 hours, and those sectors that have experienced a considerable rise,\u201d Mr. Mapa stated.<\/span><\/p>\n

Underemployment diminished across various sectors including wholesale and retail trade, transport and storage, other service activities, and manufacturing.<\/p>\n

\"Yearly<\/a>BIGGER LABOR POOL
\n<\/b>PSA statistics also revealed that 51.09 million Filipinos participated in the labor force in February, surpassing the 50.65 million in January, as well as the 50.75 million in the same month of the previous year.<\/span><\/p>\n

The labor force participation rate (LFPR) \u2014 the percentage of the working-age population (15 years old and above) that is included in the total labor force \u2014 decreased to 64.5% in February from 64.8% a year ago. Month-on-month, the LFPR slightly rose from 63.9% in January.<\/span><\/p>\n

\u201cSignificantly, the labor force participation in the country surged by 345,000. The notable drop in participation among youth aged 15-24 indicates a growing trend of young people actively engaging in education, highlighting our National Government\u2019s commitment to investing in the future of its youth,\u201d Labor Secretary Bienvenido E. Laguesma communicated to BusinessWorld<\/i> via a Viber chat.<\/p>\n

The youth LFPR slipped to 31.1% in February, down from 33.8% a year earlier and compared to 31.8% in January 2025.<\/p>\n

The youth employment rate recorded at 89.6% in February, lower than the 91.4% noted a year ago.<\/p>\n

In a different statement, Mr. Laguesma expressed that the jobs data for February reflect the government\u2019s \u201cstrong commitment as it maintains a positive outlook and promising trajectory for our labor market.\u201d<\/span><\/p>\n

The National Economic and Development Authority (NEDA) indicated that the unemployment rate in the Philippines \u201cremains comparable\u201d to Malaysia (3.1%) and Vietnam (2.2%), while being lower than that of China (5.4%) and India (6.4%).<\/p>\n

\u201cWe will build on our momentum and intensify our efforts to secure strategic job-generating investments, foster a dynamic and innovative business environment, and diversify growth drivers,\u201d NEDA Secretary Arsenio M. Balisacan stated.<\/p>\n

\u201cThe ongoing rollout and implementation of high-impact flagship infrastructure projects, particularly in energy, transportation, and digital connectivity, will enhance domestic employment and business activity,\u201d he further added.<\/p>\n

Finance Secretary Ralph G. Recto remarked that a robust labor market can help safeguard the Philippine economy from an impending trade war and global uncertainties.<\/p>\n

\u201cA strong and expanding workforce translates to rising incomes, increased purchasing power, and sustained job creation. This stimulates consumer demand and propels our economy forward,\u201d Mr. Recto articulated in a statement.<\/p>\n

\u201cWe must continue to enhance domestic demand, particularly during these unpredictable times marked by potential trade wars. A strong and resilient domestic market is our best safeguard,\u201d he concluded.<\/p>\n

\"Monthly<\/a>Federation of Free Workers President Jose Sonny G. Matula opined that the enhancement of the labor market is due to a mix of economic recovery efforts and government initiatives.<\/span><\/p>\n

\u201cThe momentum gained from post-pandemic recovery has contributed to enhanced consumer activity and the reopening of businesses, particularly in services and hospitality,\u201d he stated via a Viber chat. <\/span><\/p>\n

He also pointed out that the administration\u2019s \u201cBuild Better More\u201d infrastructure program continues to create construction-related jobs and improve mobility and tourism in essential provinces.<\/p>\n

Government cash-for-work programs and localized employment initiatives may have similarly aided the rise in employment, Mr. Matula added.<\/p>\n

University of the Philippines Diliman School of Labor and Industrial Relations Assistant Professor Benjamin B. Velasco acknowledged the progress in job creation but emphasized the importance of quality.<\/span><\/p>\n

\u201cThe improved employment figures presented in the LFS are encouraging. However, an increased number of jobs does not guarantee better job quality,\u201d he remarked in a Facebook Messenger conversation.<\/span><\/p>\n

By sector, services remained the leading employer,accounting for 61.6% of the total workforce in February, succeeded by agriculture (20.1%) and industry (18.3%).<\/span><\/p>\n

The hospitality and dining sector recorded the highest annual employment increases in February, adding 377,000 positions. This was trailed by fishing and aquaculture (+365,000), public administration and defense (+330,000), construction (+258,000), and various service activities (+232,000).<\/span><\/p>\n

Mr. Mapa remarked that there was a rise in jobs within the hospitality and dining sector in anticipation of the summer season.<\/span><\/p>\n

From one month to the next, wholesale and retail trade; repair of motor vehicles and motorcycles experienced the most significant increase in employed persons at 620,000.<\/p>\n

According to Mr. Mapa, the additional 620,000 were primarily hired in general stores specializing in food and beverages.<\/p>\n

PSA statistics indicated that agriculture and forestry experienced the largest loss of workers year on year, losing nearly 950,000 in February.<\/p>\n

This\u00a0 <\/span>was followed by administrative and support service activities (-201,000) and logistics and storage (-158,000).<\/p>\n

\u201cWhenever job losses occur, regardless of the sector, it raises concerns,\u201d Mr. Laguesma stated.<\/span><\/p>\n

The labor secretary pointed out that in 2024, the nation faced several destructive typhoons and weather disturbances that impacted agriculture and forestry.<\/p>\n

\u201cThe nation is prone to calamities, which significantly contributes to our losses in agriculture and fisheries. We hope not to repeat this situation this year,\u201d Mr. Laguesma expressed.<\/p>\n

From month to month, agriculture and forestry lost the highest number of workers (-520,000), followed by administrative and support service activities (-308,000), and logistics and storage (-176,000).<\/p>\n

Mr. Laguesma mentioned that the government will persist with its initiatives to enhance employment, including the forthcoming Labor Day Job Fair.<\/p>\n

The department is also intensifying its efforts to empower the youth through the JobStart Program, Special Program for Employment of Students, and Government Internship Program.<\/p>\n

\u201cTo ensure this focus, [we are] actively involved in ongoing capacity-building initiatives nationwide to strengthen the implementation of these youth employability programs via our Public Employment Service Offices and program implementers,\u201d he added.<\/p>\n

In a note, Chinabank Research indicated that the Philippine labor market is anticipated to stay stable, though it highlighted risks like global uncertainties, increased US tariffs, and a worldwide economic slowdown.<\/p>\n

\u201cLooking forward, the service sector is likely to remain a crucial driver of job creation, bolstered by consistent domestic demand. Conversely, goods-producing sectors, particularly those dependent on foreign demand, may encounter challenges from rising tariffs from the Philippines\u2019 largest export market: the US. Nonetheless, prospects remain viable through diversification and policy support,\u201d Chinabank Research noted.<\/p>\n

Meanwhile, Mr. Balisacan stated that the government is preparing to introduce the Trabaho Para sa Bayan Act Plan 2025-2034.<\/p>\n

This encompasses programs aimed at enhancing the competitiveness of the Filipino workforce, promoting innovation, and fostering technology adoption among businesses, as well as improving labor market governance.<\/span><\/p>\n

For his part, Mr. Matula suggested a transition towards agro-industrialization as a long-term strategy, particularly in rural regions.<\/p>\n

He emphasized the significance of investing in value-added sectors within agriculture and fisheries \u2014 such as food processing, logistics, and export development \u2014 to create more stable, higher-paying employment opportunities.<\/p>\n

He also underscored the necessity for more robust government support for micro, small, and medium enterprises.<\/p>\n


\n
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By Chloe Mari A. Hufana, Correspondent THE UNEMPLOYMENT RATE dipped to its lowest in two months in February, as an increasing number of Filipinos entered the workforce in anticipation of the summer period and midterm elections, according to the statistics bureau on Tuesday. 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