QUEZON CITY (PIA) -- The labor market in the Philippines continued to show signs of improvement in March 2023. The unemployment rate decreased to 4.7 percent, compared to 5.8 percent in March 2022, while the employment rate increased to 95.3%, up from 94.2% the previous year.

This positive trend can be attributed to an increase in labor force participation, with the labor force participation rate (LFPR) registering at 66.0%, higher than the 65.4% in March last year. The reduction in underemployment to 11.2%, down from 15.8% in March 2022, also contributed to this improvement.

The youth unemployment rate also showed a positive trend, dropping to 10.2% from 11.3% the previous year.

Services remained the top sector for employment, with a 59.0-percent share of the total employed population, followed by Agriculture and Industry at 23.5% and 17.5%, respectively. The Services and Industry sectors were the driving force behind the year-on-year increase in employment.

The government's efforts to attract foreign direct investments (FDI) through economic liberalization laws and improved ease of doing business are expected to create more job and business opportunities in the medium term. Amendments to the Retail Trade Liberalization Act, Foreign Investments Act, and Public Service Act have opened up the Philippines to more FDI, generating more quality employment opportunities in a wider range of sectors.

Department of Finance (DOF) Secretary Benjamin Diokno emphasized the need for the government to invest in infrastructure and human capital development to improve productivity and foster a vibrant economy, creating more and better-quality jobs. (DOF / PIA-NCR)