The Philippines’ unemployment rate further dropped to 4.2 percent in October 2023 from 4.5 percent a month ago, the lowest level recorded since April 2005 and similar to the rate posted in November 2022.

The latest unemployment figure translates to 2.1 million unemployed persons, lower than the reported number of unemployed persons in October 2022 of 2.2 million.

The year-to-date (YTD) unemployment rate averaged 4.6 percent, way below the 5.3 to 6.4 percent target for 2023 as specified in the Philippine Development Plan (PDP) 2023-2028.

“We are now closer than ever to achieving the President’s vision of bringing down the Philippines’ unemployment rate to 4 to 5 percent in 2028. For our part, the Department of Finance (DOF) remains steadfast in our commitment to advocate for fiscal policies that attract meaningful investments, particularly those fostering job creation in the country,” Finance Secretary Benjamin E. Diokno said.

Meanwhile, the employment rate in October 2023 soared to 95.8 percent, the highest level since April 2005, also the same as the rate in November 2022.

The number of employed individuals reached 47.8 million in October 2023, generating 739,000 employment from the same period a year ago and 136,000 employment gains from the previous month.

The increase in employment was mainly due to accommodation and food service activities (generated 291,000 employment), administrative and support (224,000), and transportation and storage (150,000).

The increase in employment rate in these sectors can be attributable to greater economic activities.

However, employment losses were experienced in wholesale and retail trade; repair of motor vehicles and motorcycles (-193,000), mining and quarrying (-75,000), and manufacturing (-73,000).

By share of employment, the services sector consistently took the top spot, making up 60.1 percent of the total employed persons. This was followed by agriculture (22.2 percent) and industry (17.8 percent).

The labor force participation rate (LFPR) in October 2023 was registered at 63.9 percent, translating to 49.9 million Filipinos who were either employed or unemployed.

On the other hand, the underemployment rate in October 2023 stood at 11.7 percent, significantly lower compared to the rate in October 2022 of 14.2 percent.

The more remunerative class of work is the main source of the increase in employment year-on-year as the number of wage and salary workers increased by 697,000, particularly from private establishments.

Other sources of increase in employment are self-employment without any paid employee and the operation of family-owned farms or businesses. These gains offset the losses from unpaid family workers.

Meanwhile, the youth present in the labor force slightly decreased to 34.1 percent from 34.2 percent in October 2022, albeit an improvement from 33.1 percent in the previous month.

The youth employment rate slightly decreased to 88.6 percent from 88.8 percent in October 2022, while the youth unemployment rate slightly inched up to 11.4 percent, from 11.2 percent in October 2022.

“Amid global external headwinds, elevated inflation, and waning pent-up demand, the Philippine economy still managed to maintain generally favorable labor and employment conditions as most of the major indicators improved relative to the same period a year ago,” Secretary Diokno said.

He added that the government will continue to intensify the implementation of its proactive measures to minimize any adverse impacts of external shocks on the domestic economy.

With the lowest unemployment rate recorded in October 2023, the Finance Chief said the national government will continue to bolster investments by maintaining macroeconomic stability and supporting the full implementation of structural reforms needed to improve the investment environment, thereby creating more employment opportunities in the country.

The government will continue to maintain the country’s macroeconomic stability by staying on the path of fiscal consolidation through the Medium-Term Fiscal Framework (MTFF), which will ultimately lead to the creation of more quality jobs and reduction of poverty incidence by steering the economy back to its high-growth path in the near term while sustaining high and inclusive growth in the medium term.

“We are also committed to investing in human capital development, especially for the youth, in order to boost their readiness and employability for quality jobs,” Secretary Diokno said.