AS the holidays ended, so did seasonal work, resulting in a slight increase in the number of jobless Filipinos. 

The Philippine Statistics Authority (PSA) reported Thursday that some 2.37 million Filipinos were unemployed in January 2023, a slight increase compared to the 2.22 million unemployed in December 2022. 

This means the country’s unemployment rate rose from 4.3 percent in December 2022 to 4.8 percent in January 2023. 

End of the holiday season

Tataas ang unemployment rate sa 2023 first quarter dahil wala ng holiday season,”

PSA National Statistician and Undersecretary Dennis Mapa

But the PSA noted that the unemployment level in January was far lower than the 6.4 percent or 2.95 million jobless in the same month in 2022.

Mapa also said that the country’s employment rate is estimated to have been 95.2 percent in January 2023. This is slightly higher than the 93.6 percent recorded in the same month in 2022.

Results of the nationwide labor force survey showed that the construction sector reported the most significant decline in the number of employees, with 334,000. 

Employment drop

Other sectors with the highest decrease in employment include water supply, sewerage, waste management, and remediation activities, with 34,000, and professional, scientific, and technical activities, with 19,000.

In December 2022, the statistics bureau said the manufacturing sector recorded the highest drop in employment rate, with 585,000, despite the holiday rush.

More workers

In contrast, the PSA said the following sectors had the highest increase in the year-on-year number of employment in January 2023:

• Wholesale and retail trade, repair of motor vehicles and motorcycles- 1.53 million
• Agriculture and forestry- 960,000
• Accommodation and food service activities- 549,000
• Transportation and storage- 303,000
• Other service activities- 203,000

According to Mapa, wage and salary workers comprised the highest portion of the employed population in January 2023, accounting for 62.3 percent of the total. Self-employed individuals without any paid employees came in second at 27.1 percent, followed by unpaid family workers at 8.1 percent. 

The lowest share, at 2.6 percent, belongs to employers in family-owned farms or businesses, he said.

Higher regional unemployment rate

According to the PSA report, the number of individuals who were underemployed stood at 6.65 million or 14.1 percent, which was a decrease from the 14.2 percent in October and 14.9 percent in January last year. 

Underemployed workers are those who are looking for higher paying jobs or jobs with longer working hours. 

But the PSA said the January percentage is higher than the underemployment rate that was seen in December 2022, which was 12.6 percent.

Mapa also noted that in January 2023, there were five regions in the Philippines that had unemployment rates that were higher than the national rate of 4.8 percent. These five regions were Region V with 6.6 percent, CALABARZON with 5.9 percent, the National Capital Region with 5.7 percent, Region VI with 5.6 percent, and Caraga with 5.0 percent.

Government measures

Meanwhile, the National Economic and Development Authority said that in light of the recent unemployment rate in the country, the national government would prioritize the upskilling and reskilling of the workforce in order to provide them with greater levels of competency. 

It would increase the available opportunities for lifelong learning, said NEDA Secretary Arsenio Balisacan.

We note that employment created year-on-year were mostly part-time and classified as vulnerable. Thus, it is imperative that labor market policies and programs that directly contribute to labor productivity and employment generation must be prioritized, not only to preserve jobs but also to generate quality jobs,”

NEDA Secretary Arsenio Balisacan