QUEZON CITY (PIA) -- In February 2023, the Philippines recorded a significant decrease in the unemployment rate, with only 4.8 percent of the population out of work.

This marks a remarkable improvement compared to the same period in 2022 when the unemployment rate was at 6.4 percent. This positive trend can be attributed to more Filipinos joining the workforce, with the labor force participation rate rising to 66.6 percent from 64.5 percent the previous month and 63.8 percent in February 2022.

Moreover, the employment rate has maintained its previous month's rate at 95.2 percent, which is higher than the 93.6 percent recorded in the previous year. The youth employment rate has also improved, with 90.9 percent of young people employed in February 2023 compared to 89.2 percent in January 2023 and 85.7 percent in February 2022.

However, while the employment rate has increased, there is still room for improvement. About 6.29 million Filipinos expressed their desire to have additional jobs or work hours, resulting in an underemployment rate of 12.9 percent, which is lower than the 14.0 percent in February 2022 and the 14.1 percent in January 2023.

For worker classification, wage and salary workers made up the largest share of the employed population at 60.9 percent, followed by the self-employed at 27.2 percent. In terms of major sectors, Services continue to dominate the labor market, accounting for 59.6 percent of employment. Agriculture and Industry followed with 24.1 percent and 16.3 percent, respectively.

The government aims to achieve an unemployment rate of 5.3 to 6.4 percent for the full-year 2023. To achieve this target, employment-generating policies will be implemented as outlined in the Philippine Development Plan (PDP) 2023-2028.

Additionally, the government will continue to focus on improving business regulations and bureaucratic efficiency, leveraging game-changing reforms such as the Retail Trade Liberalization Act (RTLA), Foreign Investment Act (FIA), and Public Service Act (PSA) to attract investments, promote better quality jobs, and accelerate economic growth. These efforts will contribute a lot to the sustained improvement of the country's labor market. (DOF/PIA-NCR)