The Philippines’ July unemployment rate rose to 4.8% from 4.5% in the previous month. The number of unemployed individuals currently stands at 2.60 million. The employment rate stood at 95.2% while the underemployment rate was at 15.9% or 7.10 million workers. <\/p>\n\n\n\n
The July underemployment rate was the highest since 2021. Meanwhile, the July Labor Force Participation Rate (LFPR) dropped significantly from 66.1% in June to 60.1%, the lowest since 2020. On average, employed individuals worked 42.3 hours per week, an increase from July 2022 and April 2023. The services sector remained the dominant source of employment, accounting for 59.4% of total employment, while agriculture and industry sectors made up 21.5% and 19.0%, respectively. Salaried workers constituted the majority of employed individuals at 67.2% while self-employed individuals without paid employees was at 25.2%.<\/p>\n\n\n\n
Our View: <\/strong>The Philippine labor market is beginning to exhibit sigs of strain, with notable issues emerging in job creation and retention during the recent reporting period. While the uptick in the unemployment rate is a concern, the more pressing issue lies in the substantial underemployment rate and the significant decline in labor force participation. <\/p>\n\n\n\n These statistics collectively highlight the difficulties faced by workers in securing full-time and stable employment opportunities. Clearly there are emerging signs of discouragement within the labor force due to challenges in finding suitable employment. Such actions may be indicative of a broader economic slowdown on the horizon. <\/p>\n\n\n\n If left unaddressed, this trend could lead to a decrease in disposable income among workers, subsequently impacting consumer spending levels.<\/p>\n\n\n\n