Unemployment rises to P7.5% in January

MANILA, Philippines - The number of jobless Filipinos grew in January compared to a year ago despite the country’s strong economic performance.

The Labor Force Survey (LFS) released by the Philippine Statistics Authority (PSA) yesterday showed the country’s unemployment rate at 7.5 percent or an estimated 2.9 million individuals.

The unemployment rate in January 2013 was at 7.1 percent or 2.7 million individuals.

The latest survey did not cover provinces in Eastern Visayas that were devastated by Super Typhoon Yolanda.

The PSA said Metro Manila still has the highest unemployment rate at 11.2 percent, up from the 9.5 percent in the same month a year ago.

By age group, 48.2 percent of those who had no job were 15 to 24 years old, while those between 25 to 34 years old accounted for 29.9 percent. Most or 34 percent of the jobless were high school graduates.

A majority or 63.9 percent of the unemployed were males.

Employment rate

The employment rate was estimated at 92.5 percent in January compared to the 92.9 percent in the same month in 2013.

Of the estimated 61.7 million population of those aged 15 years and over in January, the PSA said 36.4 million individuals were employed, up from the 36.1 million in the previous year.

Workers in the services sector continued to comprise the largest proportion of the population who are employed, making up a 54.1 percent share in January followed by the agriculture sector at 30 percent and industry sector at 15.9 percent.

Lower unemployment

The number of underemployed Filipinos in January meanwhile, was estimated at 7.1 million, lower than the 7.5 million last year.

By sector, about 41.7 percent of underemployed worked in the agriculture sector while 41.1 percent were in the services sector and 17.2 were engaged in the industry sector.

Inconsistent

University of the Philippines economist Benjamin Diokno said the latest unemployment rate is inconsistent with the picture of a growing economy.

The economy expanded at a faster 7.2 percent in 2013 compared to the 6.8 percent growth posted in the previous year.

“A growing economy should be creating more jobs, not losing them,” Diokno said.

Citing a 2013 World Bank study, he noted that by the time President Aquino steps down in 2016, the state of unemployment in the country will be as dismal as it was before he assumed the presidency, if not worse.

The study forecasts that 12.4 million Filipinos, or 11.5 percent of projected population by then “would still be unemployed, underemployed, or would have to work in the informal sector where moving up the job ladder is difficult.”

14.6 million jobs needed

With about 1.2 million new workers joining the labor force every year, Diokno said the challenge for the government is to create 14.6 million jobs in the next four years.

“But, in addition, they should make available better jobs for the other 21 million Filipinos who are informally employed – those who were self-employed, unpaid family workers, and wageworkers with no written contract, social insurance or protection from dismissal,” he said.

DOLE downplays survey

The Department of Labor and Employment downplayed the survey, saying the quality of jobs continues to improve despite the growth in the number of jobless people.

Labor Secretary Rosalinda Baldoz said the survey also indicated a “positive trend” in the quality of employment.

She also noted that the number of underemployed significantly dropped from 7.4 million to 7.1 million. 

 Baldoz expressed hope that the government would be able to cushion the impact of the job losses with the livelihood and cash for work programs as well as other job facilitation projects.

Understated

Organized labor expressed surprise over what they described as “understated” results of the survey.

“The figures were understated. For unless the government is able to improve the agricultural sector, unemployment will be a perpetual problem in the country,” Kilusang Mayo Uno chairman Elmer Labog said. – With Helen Flores, Aurea Calica, Mayen Jaymalin