QUEZON CITY (PIA) -- The Philippines' unemployment rate has dropped for the second consecutive month to 4.5 percent in April 2023, indicating sustained improvements in the country's labor market. The latest figures were released in the April 2023 Labor Force Survey by the Philippine Statistics Authority (PSA).

Finance Secretary Benjamin Diokno expressed optimism about the resilience of the labor market and its positive implications for the nation's economic transformation. To further boost job creation, enhance productivity, and improve the quality of jobs, the government is prioritizing investments in infrastructure, education, and digitalization.

The employment rate saw a notable increase to 95.5 percent, up from 94.3 percent in the same month last year. This translates to approximately 48.1 million employed persons in April 2023, reflecting a growing workforce.

Moreover, the labor force participation rate (LFPR) also experienced a positive trend, rising to 65.1 percent, with around 50.3 million Filipinos in the labor force (both employed and unemployed). This increase from the previous year's LFPR of 63.4 percent demonstrates an expanding labor market.

Additionally, the underemployment rate declined to 12.9 percent, down from 14 percent recorded in April last year. This signifies an ongoing improvement in the quality of employment in the country, supported by the increasing contribution of higher-paying wage and salary jobs to overall employment growth.

Youth unemployment, a key concern, also showed improvement, with the rate dropping to 10.0 percent from 12.3 percent in the same month last year. Efforts to address youth unemployment seem to be yielding positive results.

The Services sector remains the primary source of employment, accounting for 61.1 percent of the total employed population. Agriculture and Industry sectors followed, contributing 22 percent and 17 percent of employment, respectively.

The notable increase in employment was primarily driven by the Services sector, with key subsectors such as Wholesale and retail trade, Accommodation and food service activities, Administrative and support service activities, and Transportation and storage playing significant roles.

Employment generation has been a priority for the Marcos administration, as part of its broader social and economic transformation goals. The Philippine Development Plan (PDP) 2023-2028 emphasizes improving labor outcomes by focusing on enhancing employability, expanding access to employment opportunities, and achieving shared labor market governance.

To support these objectives, the government will continue promoting private sector spending on workforce upskilling, incentivizing deserving projects under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The Department of Finance (DOF) will also work towards improving policies to create a favorable investment climate and attract more productive and job-generating investments. The DOF's involvement in co-chairing the Economic Development Group (EDG) and the Inter-agency Committee on Inflation and Market Outlook (IAC-IMO) with the National Economic and Development Authority (NEDA) aims to maintain macroeconomic stability and sustain the country's rapid economic growth.

Recent amendments to key laws, such as the Retail Trade Liberalization Act (RTLA), Foreign Investments Act (FIA), Public Service Act (PSA), and the opening up of the renewable energy (RE) sector to full foreign ownership, are expected to further facilitate productivity-enhancing and job-generating investments in the country.

In the recently concluded Kalayaan Job Fair at the Level 5 of SM City Grand Central in Caloocan City, during the 125th Independence Day celebration on June 12, Department of Labor and Employment – National Capital Region Regional Director, Atty. Sarah Buena Mirasol expressed her delight in this recent report of the PSA. She said that during the last Labor Day job fair events held in eight sites in Metro Manila, the result was positive as many were hired on the spots and a large number of applicants that were placed. One of the purposes of these job fairs according to Director Mirasol is also to give opportunities to first-time jobseekers or newly-graduates.

These positive labor market indicators and the government's efforts to create a conducive environment for investments are promising signs for the Philippines' economic development and its population's well-being. (pia-ncr)