Unemployment down to 18-year low 3.6 percent in November

MANILA, Philippines — The country’s unemployment rate in November declined to its lowest level since 2005, as more jobs were created by the increased economic activity during the holiday season.

National Statistician Dennis Mapa said at a press conference yesterday that results of the Labor Force Survey (LFS) conducted by the Philippine Statistics Authority (PSA) showed the jobless rate was at 3.6 percent in November 2023, lower than the 4.2 percent in October 2023 and the 4.2 percent in November 2022.

Mapa said the unemployment rate in November “is the lowest since April 2005.”

It was in 2005 when the PSA introduced a new methodology for measuring unemployment that is aligned with the International Labor Organization.

The number of jobless Filipinos declined to 1.83 million in November 2023 from 2.09 million in October 2023 and 2.18 million in November 2022.

The country’s employment rate, meanwhile, rose to 96.4 percent in November 2023 from 95.8 percent in October 2023 and 95.8 percent in November 2022.

Mapa said the November employment rate is the highest since April 2005.

There were 49.64 million employed individuals in November 2023, up from the 47.80 million in October 2023 and 49.71 million in November 2022.

“In the fourth quarter, because of the holidays, we have many activities. So, that is when we see an increase in the number of employed persons,” Mapa said.

Industries with the largest increase in employment in November 2023 from October 2023 are agriculture and forestry (1.47 million); wholesale and retail trade; repair of motor vehicles and motorcycles (794,000); accommodation and food service activities (148,000); transportation and storage (124,000); fishing and aquaculture (124,000).

Meanwhile, those which registered the biggest month-on-month drop in employed individuals in November 2023 are manufacturing (-656,000); human health and social work activities (-144,000); information and communication (-77,000); professional, scientific and technical activities (-74,000); public administration and defense; compulsory social security (-61,000).

Sectors with the highest annual increase in employment in November 2023 are agriculture and forestry (1.24 million); construction (453,000); transportation and storage (308,000); fishing and aquaculture (305,000); administrative and support service activities (189,000).

On the other hand, those with the largest year-on-year decrease in the number of employed persons in November 2023 are manufacturing (-1.39 million); wholesale and retail trade; repair of motor vehicles and motorcycles (-396,000); public administration and defense; compulsory social security (-184,000); information and communication (-165,000); real estate activities (-145,000).

The underemployment rate in the country was at 11.7 percent in November 2023, unchanged from October 2023, but dipped from 14.4 percent in November 2022.

There were 5.79 million underemployed individuals or those who want to have an additional job or work hours in November 2023, higher than the 5.60 million in October 2023, but down from 7.16 million in November 2022.

The labor force participation rate was at 65.9 percent in November 2023, up from 63.9 percent in October 2023, but declined from the 67.5 percent in November 2022.

This translates to 51.47 million Filipinos aged 15 years and older in the labor force in November 2023, higher than the 49.89 million in October 2023, but lower than the 51.88 million in November 2022.

The National Economic and Development Authority (NEDA) said the year-on-year decline in labor force participation in November was mainly due to reduced participation of young people and women given family responsibilities, schooling and age-related factors.

To address the decline in the labor force and increase labor market gains, NEDA Secretary Arsenio Balisacan underscored the need to expand the digital economy, including the digitalization of micro, small and medium enterprises and startups.

“Digitalization enables alternative work arrangements, particularly for the youth, women and those in the creative sector. This will help address the declining labor force,” Balisacan said.

“We will take full advantage of the liberalization reforms intended to attract investments in the Philippines, especially in digital infrastructure. Upgrading our infrastructure will attract investments that generate high-quality jobs,” he said further. — Mayen Jaymalin