Employment uptrend reflects economic vitality; unified endeavor imperative

More Filipinos were employed in February 2024 compared to February 2023 and January 2024, according to the Philippine Statistics Authority (PSA). This translates into a 96.5 employment rate, higher than 95.2 percent in February 2023, and 95.5 percent in January 2024. The number of unemployed persons 15 years old and over was estimated at 1.80 million, or 350,000 less than the January 2024 figure, and 670,000 less than the year-ago magnitude. Conversely, the number of employed Filipinos rose to 48.95 million, higher by 3.01 million over January 2024 and by 150,000 over February 2023.

That there were only 150,000 more employed Filipinos compared to year-ago levels is explained further by the fact that the Labor Force Participation Rate (LFPR) in February 2024 at 64.8 percent was lower than the February 2023 level, which was at 66.6 percent, but higher than January 2024 at 61.1 percent. The PSA reported further: “The underemployment rate in February 2024 was posted at 12.4 percent, lower than the recorded rate in February 2023 at 12.9 percent and in January 2024 at 13.9 percent.”

This is buttressed by the fact that: “On average, employed persons worked 40.1 hours per week, which was higher than the average hours worked in a week in February 2023 at 39.5 hours, but lower than the reported average hours worked in a week in January 2024 at 42.1 hours.”

It must be emphasized, too, that of the 48.95 million employed individuals, 6.08 million, or one out of every eight workers, “expressed the desire to have additional hours of work in their present job, to have additional job, or to have a new job with longer hours of work in February 2024.”

These latest figures on the employment situation reflect the fact that, despite posting the highest growth rate in terms of Gross Domestic Product (GDP) among major Asian economies, including China, in 2023, the pace and features of such growth are still slower and less robust than planned by the country’s economic managers. The country posted a 5.6 percent GDP growth rate for 2023.

Yet, there are sufficient indicators for a more optimistic outlook. The construction sector accounted for the highest increase in the number of employed persons, at 470,000, followed by transportation and storage at 444.000. This indicates an increased level of activity in government infrastructure and business expansion projects that have significant multiplier effects in terms of generating higher income and employment levels. Also boosting higher hopes are significant increases in manufacturing and tourism industry employment.

New job creation is premised upon a confluence of beneficial factors that include, among others: business growth and expansion; influx of fresh investments; availability of skilled people; and ease of doing business. It is imperative for government to provide a suitable environment that enables the optimum participation of investors, employers, and community in the unified endeavor of nation building.