Quality of jobs continues to improve as PH records lowest-ever underemployment rate

The quality of jobs for Filipinos continues to improve as the country’s underemployment rate decreased to 10.7 percent in September 2023, the lowest figure ever recorded since earliest available data starting April 2005.

The latest underemployment figure is significantly lower than the pre-pandemic level at 14.8 percent and the 15.4 percent recorded in September 2022 as well as the 11.7 percent in August 2023.

This development is supported by the significant contribution of the more remunerative class of work to employment generation, as the number of wage and salary workers increased by 1.3 million year-on-year, particularly coming from private establishments.

Meanwhile, the unemployment rate improved to 4.5 percent in September 2023 from 5.0 percent in the same month last year but slightly inched up from 4.4 percent in August 2023.

Year-to-date (YTD), the unemployment rate averaged at 4.6 percent.

“President Ferdinand Marcos, Jr.’s ultimate goal is to bring down unemployment to 4 to 5 percent in 2028. Right now, the year-to-date unemployment rate is at 4.6 percent, way below the 5.3 to 6.4 percent target for 2023,” Finance Secretary Benjamin E. Diokno said.

Employment rate for September 2023 stood at 95.5 percent, higher than the 95.0 percent posted in the same period last year but slightly lower than the 95.6 percent recorded in August 2023.

The labor force participation rate (LFPR) was recorded at 64.1 percent in September 2023, slightly lower than LFPRs of 65.2 percent and 64.7 percent for September 2022 and August 2023, respectively.

The services sector continued to take the top spot in terms of employment with a share of 60.4 percent in September 2023. This was followed by Agriculture (21.5 percent) and Industry (18.1 percent).

In terms of sub-sectors, the following recorded annual increases in the number of employed persons: accommodation and food service activities (608,000); administrative and support service activities (535,000); construction (481,000); transportation and storage (255,000); and fishing and aquaculture (193,000).

However, employment losses versus the prior year were experienced in manufacturing (-888,000), wholesale and retail trade