Diokno: Labor market holds strength in July 2023, supported by reforms to PH investment environment

The country’s unemployment rate in July 2023 decreased to 4.8 percent from the 5.2 percent recorded in the same period last year. The number of unemployed persons fell to 2.3 million in July, down by 329 thousand from July 2022, reflecting the continued improvement in the labor market.

“The July 2023 labor numbers show that the country’s jobs market continues to hold strength. In order to sustain this amid an uncertain global economy, the government will continue its efforts to attract job-generating investments, enhance the ease of doing business in the country, and boost productivity,” Finance Secretary Benjamin E. Diokno said.

The employment rate increased to 95.2 percent compared to 94.8 in July 2022 although the underemployment rate registered an increase at 15.9 percent compared to the recorded rate of 13.8 percent in July 2022.

However, the level of employment declined year-on-year (YoY) in July 2023 mainly due to lower employment in Wholesale and retail trade (declined by 2 million), Agriculture and forestry (1.6 million), and Public administration and defense (271 thousand). In addition, these could be partly attributed to elevated inflation levels, adverse weather conditions, and moderate government spending.

The labor force participation rate (LFPR) decreased to 60.1 percent from 65.2 percent in July 2022, translating to 46.9 million who were either employed or unemployed.

The Philippine Statistics Authority (PSA) attributed this decrease to a shift in focus of unpaid family workers to household duties, along with those that expressed that they are too young to be in the workforce and those who believe that there are no available jobs in the market.

By major sectors, Services remained the top employment hub accounting for 59.4 percent of the total employed persons. This is followed by Agriculture and Industry accounting for 21.5 percent and 19.0 percent, respectively.

The top three sub-sectors that registered increases in employment were Transportation and storage; Administrative and support service activities; and Professional, scientific and technical activities.

By worker classification, wage and salary workers, mainly those working in private