Jobless rate dips further to 4.7% in March

The number of jobless Filipinos declined further in March amid continued improvements in the domestic labor market, data from the Philippine Statistics Authority (PSA) showed.

The country’s unemployment rate dropped to 4.7 percent last March from 5.8 percent in the same period last year. Month-on-month, it also fell from 4.8 percent in February.

A total of 48.58 million individuals were estimated to be employed in March, which is 1.61 million higher than the figure recorded in the same period last year.

The country’s labor force participation rate also increased to 66 percent, from 65.4 percent a year earlier.

Across industries, the services sector remained the top contributor, with a share of 59 percent of the total employed population. The agriculture and industry sectors accounted for 23.5 percent and 17.5 percent of the total employed persons, respectively.

The quality of employment also displayed significant gains, with underemployment rate went down to 11.2 percent, the lowest since April 2005, from 15.8 percent in March last year.

On the other hand, the youth unemployment rate improved to 10.2 percent from 11.3 percent in March last year.

In a statement, National Economic and Development Authority Secretary Arsenio M. Balisacan said the government needs to continue address the persistent issues and constraints in improving labor productivity and high-quality job generation.

“Passing major economic liberalization reforms is a critical first step,” Balisacan said.

“However, in a region where our neighbors are also aggressively competing for investments, we must leverage on these changes to the country’s policy regime by ensuring that we urgently address on-the-ground concerns related to the ease of doing business,” he added.

Investors must not be kept waiting, Balisacan pointed out, noting that “we must create an enabling regulatory environment that makes it easy for them to set up shop, expand, and generate the high-quality jobs we need.”

Meanwhile, Finance Secretary Benjamin E. Diokno said the continued improvements in the labor market indicate that the economy is poised for continued recovery and growth.

Diokno expects the economy likely grew by at least seven percent in the first-quarter of 2023.

“The government’s drive to attract foreign direct investments, mainly through the economic liberalization laws and efforts to enhance the ease of doing business in the Philippines, are expected to generate jobs and business opportunities in the medium term,” Diokno said.

The amendments to the Retail Trade Liberalization Act, Foreign Investments Act, and Public Service Act opened up the Philippines to more foreign direct investments, which generate more and quality employment opportunities for Filipinos in a wider range of sectors.

“Furthermore, deepening our investments in infrastructure and human capital development will allow us to improve productivity, create more and better quality jobs, and foster a vibrant economy,” Diokno added. — Chino S. Leyco