By Chloe Mari A. Hufana, A reporter
Johannesburg – Unemployment in the Philippines fell to 4% in August as more women were employed in the service sector, the local statistics agency said on Tuesday.
Preliminary data from the Philippine Statistics Authority (PSA) survey revealed that the unemployment rate dropped from 4.7% in July and 4.4% in August last year.
This translated to 2.07 million unemployed Filipinos, down 305,000 from July and 149,000 from last year.
“The biggest thing we saw in August 2024 is that more women are participating in the workforce and many of them are attracted to our labor market,” PSA Undersecretary and National Statistician Claire Dennis S. Mapa told a news conference in mixed English and Filipino. .
About 1.03 million female workers have joined the workforce, most of whom work more than 40 hours a week, he added.
National Economic and Development Authority Secretary Arsenio M. Balisacan said Filipinos are “in for a better holiday season as the latest labor force survey showed promising labor market results.”
He said accelerating the pace of key infrastructure projects in energy, transport and physical and digital communication is essential to attracting investment in high-value sectors, such as manufacturing and agribusiness, as well as improving labor productivity.
“With the government’s continued focus on attracting strategic investments and the timely passage of key reforms, the Philippines is well positioned to translate its promising macroeconomic fundamentals into long-term prosperity for its workforce and economy,” he added.
The labor force participation rate among Filipino women workers rose to 54.7% from 52.4% in July and 52.9% in August last year. For male workers, the rate dropped to 74.8% from 76.3% last year. It was 74.5% in July.
The employment rate in August rose to 96% from 95.3% in July and 95.6% last year, which equates to 49.15 million Filipinos employed.
The employment rate for women increased to 95.3% from 94.8% in July and 95.1% last year. The rate of male employees also increased to 96.5% from 95.6% in July and 96% in August last year.
THE RISE OF DIGITALIZATION
The influx of contract workers due to digitalization led to the hiring of more women in August, said Leonardo A. Lanzona, Jr., an economics professor at Ateneo de Manila University.
“In general, women are concerned about other factors that are not related to compensation,” he said in a Facebook Messenger chat. “The greater involvement in social media enabled them to earn more money without leaving home and their children.”
He said that more female workers are employed not seasonally, but rather the result of digital growth and flexible working hours, which often lead to lower pay.
“These jobs offer very little protection and tend to be unstable,” said Mr. That’s it. “In reality, people do not choose these types of jobs but are forced to accept them if there are no better options.”
“Improving working conditions can only be achieved if other options in the domestic labor market exist,” he added.
Benjamin B. Velasco, an assistant professor at the University of the Philippines School of Labor and Industrial Relations in Diliman, said the low unemployment and employment rates and high participation of women in the workforce are “welcome news.”
“We just need to be aware of two things,” he told BusinessWorld via Messenger chat. “First, the fine print – employed means working at least one hour last week, and secondly, these fine statistics are episodic or temporary changes.”
He also noted that the participation rate for women is highest in June at 55.8% and March at 55.1%. “So, it’s not a long-term trend,” he added, noting that the rate rises and falls a little, but the long-term is at 50%.
“In other words, half of women of working age are unemployed and out of the workforce.”
The employment rate improved slightly in August as the unemployment rate fell to 11.2% from 12.1% in July and 11.7% last year.
This meant that 5.48 million Filipinos with jobs were still looking for more work or more hours, compared to 5.78 million unemployed workers in July and 5.63 million a year ago.
“The Employers Confederation of the Philippines (ECoP) emphasized that although the declining unemployment rate is good, there is a continued need to focus on creating quality jobs, especially in sectors such as retail and supermarkets, which have had a significant impact on employment gains,” ECoP Governor Arturo C Guerrero III told BusinessWorld in a Viber message.
“The ECoP also promotes the development of workforce skills to meet the needs of the industry, ensure continued job growth and economic stability,” he added.
“Let’s hope that job opportunities will open up for our people due to the continued decline in the rate of inflation, which will strengthen the income of our businesses and every family,” said Finance Secretary Ralph G. Recto in a statement written in mixed English and Filipino.
“The recent easing of monetary policy due to inflation will further stimulate consumption and investment growth which will lead to more quality employment for Filipinos. More and better jobs will allow Filipino families to spend more, growing our economy,” he added.
Mr. Mapa said they expect the employment figures to improve this quarter, as the income of companies and the economy increases with the increase in spending.
“The expectation is that people will spend more money as they will have more money in their 13-month salary,” said Mr. Velasco. “These are seasonal or episodic bumps, but unfortunately they don’t mean long-term changes in work.”
“The structure of the economy has not changed, so we cannot expect a high-level change in work,” he added.
Federation of Free Workers President Jose Sonny G. Matula in a Viber message said the increase in wages is important as Filipinos are likely to use their extra money locally, to effectively develop the economy.
The average Filipino worker worked 40.7 hours per week in August, down slightly from 41.1% in July and 40.8 hours a year earlier.
The service sector remains the leading employer with an employment rate of 63.3%, followed by agriculture at 19.3% and industry at 17.4%.
Bukluran ng Manggagawang Pilipino National President Renecio “Luke” S. Espiritu said poor working conditions and lack of job security affect women the most.
“They are the ones who are left to take care of the home as unpaid reproductive work, often turning to unstable jobs or taking care of small family businesses to cope with the rising prices and to add to the hunger income of their partners,” he said on Facebook Messenger. discuss.
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