Unemployment rate drops to 5.1% from 5.5% in April —PSA

LABOR FORCE SURVEY

By JON VIKTOR D. CABUENAS, GMA News, 5 Jun 2019

The unemployment rate dropped to 5.1 percent in April 2019, from 5.5 percent a year earlier, the Philippine Statistics Authority said Wednesday, citing results of the Labor Force Survey.

As a result, the employment rate improved to 94.9 percent from the 94.5 percent in the same comparable period.

The country’s labor force totaled 72. 538 million, made up of the population 15 years old and over, data released by the statics office showed.

The drop in unemployment rate translates to 74,000 less unemployed Filipinos during the month, National Statistician Claire Dennis Mapa said in a press conference in Quezon City.

The majority of the unemployed 62.7 percent males, 43.8 percent 15 to 24-year-olds, and 10.7 percent college undergraduates.

Among the regions with the highest unemployment rate were:

Autonomous Region in Muslim Mindanao—9.0 percent
National Capital Region—6.3 percent
Ilocos Region—5.9 percent
Bicol Region—5.8 percent
Employed, underemployed

The PSA classifies employed persons as either full-time or those working 40 hours a week, or part-time and working less than 40 hours a week.

“By definition, employed persons who express the desire to have additional hours of work in their present job, or to have additional job, or to have a new job with longer working hours are considered underemployed,” the PSA said.

In April 2019, the underemployment rate, which is the percentage of the underemployed to the total employed, was estimated at 13.5 percent. In April 2018, the underemployment rate was 17.0 percent.

The drop in the underemployment rate is equivalent to a reduction of 1.226 million Filipinos.

“Underemployed persons who work for less than 40 hours in a week are called visibly underemployed persons. They accounted for 60.0 percent of the total underemployed in April 2019 and 52.6 percent in April 2018,” the PSA said.

By sector, 47.6 percent of the underemployed worked in the services sector, while 34.0 percent were in the agriculture sector. Those in the industry sector accounted for 18.5 percent,” it added.

The National Economic and Development Authority (NEDA) noted the employment momentum must be sustained to meet the Philippine Development Plan (PDP) targets by 2022.

Approved in 2017, the PDP is a six-year framework for the Philippines to achieve inclusive growth and reduce the poverty rate by as much as 7.6%.

“The expansion may be attributed to increased business activities in line with the campaign period for the Philippine midterm elections. Adding to this is the increase in consumer demand during summer and harvest seasons,” Socioeconomic Planning Secretary Ernesto Pernia said in a separate statement.

Supporters and allies of President Rodrigo Duterte dominated the Senatorial race during the midterm elections last month, which Fitch said was positive for the continuity of policy reforms of the administration.

“Both quality and quantity of work need to be addressed. At the same time that employment opportunities are being increased, workers and jobseekers must be enabled to improve their knowledge and skills through training and education,” added Pernia. —VDS, GMA News