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The end of the Christmas holiday spending prompted an increase in the country’s unemployment rate at the start of the year, according to the Philippine Statistics Authority (PSA).
There were a total of 2.15 million unemployed Filipinos which translated to an unemployment rate of 4.5 percent in January 2024. This is higher than the 1.6 million jobless Filipinos in December 2023 which translated to a jobless rate of 3.1 percent during the period.
The data also showed it was also higher than the unemployed persons in October 2023 of 2.09 million but lower than the reported number unemployed persons in January 2023 of 2.38 million.
“The government sustains its push to attract more job-generating investments by creating an enabling policy and regulatory environment. At the same time, linkages between industry, the academe, and the public sector will be strengthened to address skill mismatches in the labor market,” said NEDA Secretary Arsenio M. Balisacan.
The PSA also revealed that the labor force contracted during the survey period. The overall labor force participation rate (LFPR) for January 2024 declined to 61.1 percent from 64.5 percent in January 2023.
This translated to about 1.6 million fewer individuals in the labor force. Most of the contraction was recorded among women (-1.3 million), the youth cohort (-1 million), and junior high school graduates (-652,000).
The top reasons cited for not joining the labor force are household duties, age-related restrictions, such as being too young/old or having a permanent disability, and schooling.
The return to onsite work has limited women’s participation to 49.3 percent from 53.7 percent in January 2023. Similarly, completely on-site schooling has brought the youth LFPR down to 29.6 percent from 34.8 percent in the same period last year.
“We will remain responsive to the needs of vulnerable groups, including women, youth, older individuals, and those with disabilities. Our existing policy framework governing alternative work arrangements will be revisited,” Balisacan said.
“Our pursuit of policies will be adaptive to the responsibilities of female workers and the evolving work landscape, with a focus on supporting the vulnerable, including those in the creative sector,” he added
The country’s chief socioeconomic planner anticipates the implementation of more positive and transformative employment programs following the approval of the implementing rules and regulations or IRR of the “Trabaho Para sa Bayan” (TPB) Act on March 5, 2024.
Signed by President Ferdinand Marcos Jr. in September 2023, the law aims to promote workers’ employability, competitiveness, and productivity, and to address issues such as unemployment and underemployment.
Under the TPB Act, an Inter-Agency Council will be created, with NEDA as the Chair, DOLE and DTI as co-chairpersons, and DOF, DBM, DILG, and TESDA as members. It will also include representatives from employers’ organizations, labor organizations, marginalized or vulnerable groups, and informal sectors.
Balisacan highlighted the significance of the upcoming Inter-Agency Council, stating, “The diverse perspectives from council members will expedite decision-making regarding improving working conditions across industries, promoting upskilling and reskilling, and creating high-paying employment opportunities for all.”
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