PH records historic low unemployment rate of 4.2% in October 2023

The Philippines’ unemployment rate further dropped to 4.2 percent in October 2023 from 4.5 percent a month ago, the lowest level recorded since April 2005 and similar to the rate posted in November 2022.

The latest unemployment figure translates to 2.1 million unemployed persons, lower than the reported number of unemployed persons in October 2022 of 2.2 million.

The year-to-date (YTD) unemployment rate averaged 4.6 percent, way below the 5.3 to 6.4 percent target for 2023 as specified in the Philippine Development Plan (PDP) 2023-2028.

“We are now closer than ever to achieving the President’s vision of bringing down the Philippines’ unemployment rate to 4 to 5 percent in 2028. For our part, the Department of Finance (DOF) remains steadfast in our commitment to advocate for fiscal policies that attract meaningful investments, particularly those fostering job creation in the country,” Finance Secretary Benjamin E. Diokno said.

Meanwhile, the employment rate in October 2023 soared to 95.8 percent, the highest level since April 2005, also the same as the rate in November 2022.

The number of employed individuals reached 47.8 million in October 2023, generating 739,000 employment from the same period a year ago and 136,000 employment gains from the previous month.

The increase in employment was mainly due to accommodation and food service activities (generated 291,000 employment), administrative and support (224,000), and transportation and storage (150,000).

The increase in employment rate in these sectors can be attributable to greater economic activities.

However, employment losses were experienced in wholesale and retail trade; repair of motor vehicles and motorcycles (-193,000), mining and quarrying (-75,000), and manufacturing (-73,000).

By share of employment, the services sector consistently took the top spot, making up 60.1 percent of the total employed persons. This was followed by agriculture (22.2 percent) and industry (17.8 percent).

The labor force participation rate (LFPR) in October 2023 was registered at 63.9 percent, translating to 49.9 million Filipinos who were either employed or unemployed.

On the other hand, the underemployment rate in October 2023 stood