After reaching one of the lowest unemployment rates in 20 years, the Philippines recorded an increase in the unemployment rate to 4.7% in July, with 2.38 million Filipinos unemployed, according to Philippine Statistics Authority (PSA) data released on Friday, September 6.
This is the highest unemployment rate for the year 2024, following June's 3.1%, the second lowest since April 2005.
The number of employed Filipinos also decreased, from 96.9% in June or 50.28 million workers, to 95.3% in July, equivalent to 47.7 million employed individuals.
Meanwhile, the underemployment rate remained stable at 12.1% from June, down from 14.6% in April. Underemployment refers to those who are employed but are looking for more hours or longer hours of work.
National Statistician Dennis Mapa attributed the increase in unemployment to the increase in youth unemployment, where 1.02 million Filipinos aged 15 to 24 were unemployed in July, making up 43% of the total number of unemployed.
"We think that since it's July, many of the new graduates from college or senior high school have entered the labor market, but some have had a hard time finding work," said Mapa.
In July 2023, the unemployment rate reached 4.9%, but the decline from 4.5% in June was not as large as this year's decline. By August 2023, the unemployment rate had dropped to 4.4%.
Youth employment in July 2024 was recorded at 85.2%, lower compared to 85.8% in July 2023.
Wholesale, Retail, and Auto Repair: Growth Continues
As of July 2023, the sector with the largest job growth was wholesale and retail trade, including motor vehicle and motorcycle repair, which added 1.07 million new jobs.
Other sectors that contributed to job growth were agriculture and forestry with 936,000 new positions, accommodation and food services with 512,000, public administration and defense with 385,000, and construction with 171,000 new jobs.
On the other hand, the sectors with the largest decrease in the number of jobs were manufacturing which lost 154,000 jobs, followed by professional, scientific, and technical services which decreased by 100,000 jobs, information and communication with 76,000 lost, mining and quarrying which decreased by 36,000, and human health and social work which lost 27,000 jobs.
Metro Manila recorded the highest unemployment rate of 6.5%, while the Cordillera Administrative Region had the lowest rate of 2.3%.
