How many Filipinos are unemployed?

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How many Filipinos are unemployed?

Fri, 07/22/2011 - 14:39

What is unemployment rate in the Philippines?
Ilang Pilipino ang walang trabaho?

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Rod's picture

More Filipinos found jobs in

Fri, 07/22/2011 - 14:41

More Filipinos found jobs in July 2010, translating to a lower unemployment rate of 6.9 percent during the month compared to 8 percent in April and 7.6 percent a year ago, according to the National Statistics Office (NSO).  It was the lowest jobless rate recorded since the 6.8 percent posted in October 2008.

Data from the Labour Force Survey of the NSO shows that the employment level in July 2010 grew 2.2 percent to reach 36.3 million, from 35.5 million in the same period last year.  The number of jobless Filipinos was also reduced by some 400,000 to 2.7 million in July from the 3.1 million reported in April.

“The improvement in the employment situation is related to the high [economic] growth rate in the second quarter,” Socioeconomic Planning Secretary Cayetano Paderanga Jr. was quoted as saying.  The country’s gross domestic product expanded 7.9 percent year-on-year in the second quarter of 2010.  The Employers Confederation of the Philippines confirmed that more companies are hiring this year.

All job indicators yielded encouraging results.  The ranks of the underemployed also shrank to an estimated 6.5 million from last year’s seven million, putting the underemployment rate at 17.9 percent in July, compared to 19.8 percent a year ago.

“Lower unemployment rate was attributed to more people working in the agriculture sector, slight improvement in the employment level and the slower labour force growth,” said Secretary Paderanga.

Employment in the agriculture sector grew 3.1 percent in July 2010, with a net employment of 376,000. The agriculture sector accounted for a third of the total Filipinos employed. “This reflects the government’s continued support for the agricultural sector such as improvements of irrigation system and seeds dispersal system. The decline in fertiliser prices, in time for the planting season, also contributed to the gains in net employment,” he said.

The services sector, which represents 51.2 percent of the total employed saw an increase in employment of 1.5 percent from the previous year. Employment in the industry sector also increased 2.3 percent compared to last year, making up 14.9 percent of the total Filipinos employed in July 2010.

Overall, the total number of Filipinos in the labor force grew by 1.5 percent compared to last year. However, this was lower than the rate of 2.9 percent from July 2008 to July 2009.
“This is because Filipinos who were pushed to work during the crisis in 2008 and 2009 may have withdrawn from the labour force since they can now afford to stop working or looking for work,” the National Economic and Development Authority (NEDA) said.

Meanwhile, around 777,000 Filipinos were newly employed on a full-time basis in July 2010. Secretary Paderanga said although the economy generated new employment, most of the visibly underemployed and unpaid family workers were largely in the agriculture sector.
He cited the need to continually implement aggressive policies and programmes to improve the quality of employment and address skills mismatch.

“While the Philippine economy has shown relative improvements in the labour sector in July 2010, the quality of employment remains a concern. The government should continue to pursue policies that will raise investments and improve productivity as well as income per capita in the country. This in turn will spur the productive sectors of the economy and encourage the generation of a more stable-paying employment opportunities,” he said.

He said the government should strengthen the implementation of policies that address the existing skills mismatch problem in the labour sector to reduce the portion of educated but unemployed sectors of the society.