ONE of the major issues that the new administration faced was the high number of unemployed Filipinos post pandemic.
The employment rate has shown an increase, but is it safe to say that the government is doing a good job?
Based on the May 2023 Labor Force Survey of the Philippine Statistics Authority (PSA), the employment rate in the country was estimated at 95.7 percent, which is higher than the 94 percent employment rate in May 2022, and 95.5 percent in April 2023.
In terms of magnitude, the number of employed persons stood at 48.26 million in May 2023, higher than the reported number of employed persons in the same period last year which was 46.08 million.
The data brought down the country’s unemployment rate to 4.3 percent in May 2023 from 6.0 percent in May 2022 and 4.5 percent in April 2023.
In fact, the May 2023 unemployment rate ranks the second lowest since April 2005, following the 4.2 percent unemployment rate in November 2022.
This brought the Labor Force Participation Rate (LFPR) to 65.3 percent which was higher than the reported LFPR in May 2022 (64.0%) and in April 2023 (65.1%). This means there were 50.43 million individuals aged 15 years old and over who were either employed or unemployed in May 2023.
Sectors with highest employment increase
Throughout the first year of the Marcos administration, there were industries that enjoyed labor force dominance, covering over 58.8 percent of the total employed population in May 2023.
These are the following:
- Agriculture and forestry (1.25 million);
b. Accommodation and food service activities (398 thousand);
c. Other service activities (365 thousand);
d. Fishing and aquaculture (351 thousand); and
e. Arts, entertainment, and recreation (305 thousand).
Meanwhile, the industries that showed a drop in the number of employed persons from May 2022 to May 2023 were as follows:
a. Wholesale and retail trade; repair of motor vehicles and motorcycles (-781 thousand);
b. Construction (-274 thousand);
c. Manufacturing (-253 thousand);
d. Water supply; sewerage, waste management and remediation activities (-78 thousand);
e. Information and communication (-51 thousand).
Wage and salary workers still account for the largest share of employed persons, which were 60.5 percent of the total number of employed persons in May 2023.
This was followed by self-employed persons without any paid employee at 28.1 percent and unpaid family workers at 9.2 percent.
Employers with their own family-operated farm or business had the lowest share at 2.2 percent.
Youth labor participation
Meanwhile, the PSA also logged an increase in youth employment, from 87.9 percent in May 2022 to 89.4 percent in May 2023. Among the employed youth, 11.0 percent were underemployed in May 2023, which was lower than the reported 11.6 percent in May 2022.
The report also recorded the Youth Labor Force Participation Rate at 33.8 percent. This was lower than the 36.2 percent reported rate in the same month last year and the 34.7 percent youth LFPR in April 2023.
Fresh grads struggle
But even with the higher employment rate, many Filipinos, especially fresh graduates, struggle to find a job.
A Commission on Human Rights report released in February said pandemic graduates actually have difficulty securing jobs or staying long in their current jobs.
In its Human Rights Situation Report–School to Work Transition 2022, the CHR noted that since many companies were forced to shut down, downsize, or freeze their hiring because of the global health crisis, “more fresh graduates found it more difficult to be employed due to the limited opportunities available.”
As a result, it took longer for fresh graduates to get employed during the pandemic. From just 30 to 90 days pre-pandemic, it now took fresh graduates three to six months to get hired, it said.
The report also said that while some companies hire K to 12 graduates, many of them still find it hard to get a job because a lot of employers still prefer those with bachelor’ degrees.
It found as well that students essentially lacked the abilities and competencies required in the workplace as a result of the sudden move to digital learning.
