Philippines Labor Market Shows Positive Signs in April 2024

The latest Philippine Statistics Authority (PSA) Labor Force Survey results for April 2024 paint a cautiously optimistic picture of the country's labor market. Here are the key takeaways:

Unemployment Down:

  • The unemployment rate fell to 4.0%, a significant improvement compared to 4.5% in both April 2023 and January 2024.
  • This translates to a decrease in the number of unemployed individuals, with 2.04 million Filipinos actively seeking work in April 2024, down from 2.26 million a year earlier.

Employment Up:

  • The employment rate rose to 96.0%, indicating more Filipinos are finding jobs.
  • The number of employed individuals reached 48.36 million, exceeding figures from April 2023 (48.06 million) and January 2024 (45.94 million).

Labor Participation Dips Slightly:

  • The labor force participation rate (LFPR) decreased to 64.1%, compared to 65.1% in April 2023. This might be due to more young people choosing to pursue education.

Working Hours:

  • The average workweek increased to 40.5 hours, higher than April 2023 (36.9 hours) but lower than January 2024 (42.1 hours).

Underemployment on the Rise:

  • Despite a decrease in unemployment, underemployment rose to 14.6%, indicating a need for more quality jobs with sufficient hours.

Industry Trends:

  • The services sector remains dominant, employing 61.4% of the workforce.
  • The biggest employment gains occurred in accommodation & food service (+638,000), construction (+378,000), transportation & storage (+289,000), and manufacturing (+285,000) compared to April 2023.
  • Agriculture and forestry saw the sharpest decline in employed individuals (-818,000).

Regional Variations:

  • Unemployment rates differed across regions, with Region V (Bicol) having the highest (5.4%) and Region IX (Zamboanga Peninsula) the lowest (2.3%).

Youth Labor Market:

  • The youth LFPR and employment rate decreased slightly.
  • The proportion of youth not in education, employment, or training (NEET) increased, highlighting the need for targeted programs.

Overall:

The April 2024 labor market data suggests a positive trend with decreasing unemployment and increasing employment. However, underemployment remains a concern, and disparities exist across sectors and regions. Continued government efforts are crucial to create more quality jobs and address the needs of young Filipinos entering the workforce.