Unemployment eases to 6.1% in April

MANILA, Philippines - Some 2.6 million Filipinos remained jobless but employment registered a slight improvement compared to last year, the National Economic and Development Authority (NEDA) said yesterday.

NEDA said the unemployment rate was placed at 6.1 percent in April, down from 6.4 percent in April 2015, about 0.4 percentage point lower than the full-year target of 6.6 to 6.7 percent.

“These unemployment numbers are a reflection of the country’s vibrant economy,” Socioeconomic Planning Secretary Emmanuel Esguerra said.

Esguerra also noted the economic inactivity among the youth.

Youth unemployment rate stood at 14.6 percent in April. This means 23.8 percent of the total young working population – 4.7 million young Filipinos – were underutilized, neither being in school nor employed.

Underemployment, which refers to those employed but want more hours of work, was placed at 18.4 percent in April, higher than the 17 percent target in 2016. This is equivalent to 7.3 million underemployed persons mostly in the agriculture and services sector.

Esguerra said the incoming administration could help improve the employment situation in the country by creating conditions that would produce more high quality jobs. These include easing the country’s foreign investment restrictions.

“Improving the business climate is key, given the need for resiliency and adaptability to changes in the labor market,” Esguerra said.

He said the country also needs to focus more on income security rather than job security.

“This can be done by producing a better trained and agile workforce while exploring more flexible work contracts,” Esguerra said.

Esguerra, however, pointed out that more Filipinos were employed in April this year compared to the same period a year ago because of strong election-related spending.

Citing the report of the Philippine Statistics Authority (PSA), Esguerra said the country’s employment rate rose to 93.9 percent in April, up from 93.6 percent in the same month in 2015.

During the period, the country had a total labor force of over 40 million comprising Filipinos aged 15 years old and above.

Of the employed, more than three quarters were permanently employed and just over a fifth were employed on a temporary basis.

Labor Secretary Rosalinda Baldoz said the PSA survey indicated that more jobs were generated but the quality of employment has yet to improve.

“It seems that the increase in job creation is in the informal sector,” she said.

Trade Union Congress of the Philippines (TUCP) said the latest results of the PSA survey showed the failure of the government to address the country’s unemployment and underemployment problem.

TUCP spokesman Alan Tanjusay took exception to the statements of Esguerra attributing the increased workforce to election spending.

“Despite the opportunities created by the national campaign season, it was not able to absorb the graduates from vocational schools. Many graduates were unable to get a job,” Tanjusay said.  – Mayen Jaymalin