THE Philippine labor market exhibited a mixed performance in July 2024, with a slight decrease in the unemployment rate but an increase in the number of unemployed individuals. The unemployment rate in July 2024 was estimated at 4.7 percent, down from 4.9 percent in July 2023. However, the total number of unemployed individuals rose to 2.38 million, higher than the 2.29 million recorded in July 2023 and 2.04 million in April 2024.
The employment rate, which measures the proportion of the labor force that is employed, increased to 95.3 percent in July 2024, up from 95.1 percent in the same month last year. This indicates a rise in the number of employed individuals, reaching 47.70 million in July 2024. While this figure is higher than the 44.56 million employed in July 2023, it is lower than the 48.36 million recorded in April 2024.
The labor force participation rate (LFPR), which represents the percentage of the population aged 15 years and over who are either employed or unemployed, also saw an increase in July 2024, reaching 63.5 percent. This is significantly higher than the 60.0 percent recorded in July 2023 and slightly lower than the 64.1 percent in April 2024. This indicates a growing number of Filipinos actively seeking employment.
Despite the positive signs in the employment rate and LFPR, the underemployment rate, which measures the proportion of employed individuals who desire additional hours of work, decreased to 12.1 percent in July 2024. This is down from 15.9 percent in July 2023 and 14.6 percent in April 2024. This suggests that while more Filipinos are employed, a significant portion of them still lack sufficient work hours.
The services sector remained the dominant industry in terms of employment, accounting for 60.8 percent of the total employed individuals. The agriculture and industry sectors contributed 21.2 percent and 18.0 percent, respectively.
The top five sub-sectors with the highest annual increases in employment in July 2024 were: wholesale and retail trade; repair of motor vehicles and motorcycles (1.07 million); agriculture and forestry (936 thousand); accommodation and food service activities (512 thousand); public administration and defense; compulsory social security (385 thousand); and construction (171 thousand).
On the other hand, the following five sub-sectors experienced the highest annual decreases in employment: manufacturing (-154 thousand); professional, scientific and technical activities (-100 thousand); information and communication (-76 thousand); mining and quarrying (-36 thousand); and human health and social work activities (-27 thousand).
These figures suggest a mixed picture of the Philippine labor market in July 2024. While the unemployment rate has declined, the number of unemployed individuals has increased, and underemployment remains a concern. The government will need to address these challenges to ensure sustainable and inclusive economic growth.
