In July, the Philippines witnessed a notable spike in unemployment, according to the Philippine Statistics Authority (PSA). The number of unemployed Filipinos aged 15 and above surged to 2.38 million, up from 1.62 million in June and 2.29 million in July 2023. This increase pushed the unemployment rate to 4.7%, a marked rise from June’s 3.1%.
Youth Unemployment Drives the Increase
The primary driver behind the rise in unemployment is the struggle faced by young job seekers. National Statistician Claire Dennis Mapa highlighted that many new graduates from colleges and senior high schools were unable to find jobs. Youth unemployment accounted for 43% of the total unemployed in July. Out of 6.89 million young Filipinos who entered the labor market that month, 1.02 million, or 14.8%, were without work. Additionally, weather-related disruptions in July further dampened employment prospects by affecting various sectors and reducing overall labor demand.
Employment Trends and Future Outlook
July also saw a decline in the number of employed persons, which fell to 47.70 million from 50.28 million in June, translating to an employment rate of 95.3%, down from 96.9%. The services sector continued to be the largest employer, accounting for 60.8% of the workforce. However, notable job losses were recorded in several sectors: manufacturing (-154,000), professional services (-100,000), and information and communication (-76,000).
Looking ahead, the National Economic and Development Authority (NEDA) is actively working on the Trabaho Para sa Bayan Master Plan, aimed at enhancing job opportunities and skills development. NEDA Secretary Arsenio Balisacan emphasized the need for accelerated infrastructure development and upskilling programs to tackle employment challenges. Efforts to boost digital transformation and attract high-quality investments are also underway, with the goal of improving the labor market and achieving the country’s development targets.
