July 05, 2024 - The Philippines' employment data for May 2024 is expected to show improvement, driven by the hiring of more agricultural workers as weather conditions improve, according to an economist.
"Better weather conditions with the start of the rainy season have likely led to increased hiring in agriculture," said Michael Ricafort, chief economist at Rizal Commercial Banking Corporation, in a message on Friday.
The country's employment rate stood at 96% in April, exceeding the 95.5% recorded a year prior but dipping slightly from March's 96.1%. Meanwhile, the unemployment rate was at 4%, down from 4.5% in the previous year, but higher than March's 3.9%.
The Philippine Statistics Authority previously reported a significant decline in agricultural employment due to the El Niño phenomenon. Ricafort expects this trend to reverse with the arrival of the rainy season.
"The rise in travel and tourism activities during the summer season may have also contributed to positive employment data," he added. "Increased spending on travel, vacations, and festivities likely generated more jobs in these sectors."
Ricafort anticipates that preparations for the upcoming mid-term elections will further boost employment in the coming months.
"Government spending on infrastructure and various projects before the election ban will likely create more jobs," he said.
However, Ricafort also cautioned about potential factors that could dampen employment growth in the coming months. These include typhoons, the effects of La Niña, and the ghost month in August, which is traditionally seen as a slow period for businesses.
He believes these factors may be counterbalanced by the seasonal increase in import and production activities in the third quarter, in preparation for the holiday season.