Clearly, the Christmas season is here. Vehicle traffic is more than the extraordinary density, and it has invaded many quiet streets where vehicle movement was fine, until the “ber” months rolled in.
Pedestrian traffic has also thickened both along the streets and in shopping malls. Gone are the days when one can get a quick drink or meal from a kiosk or restaurant; there’s always a line and waiting time. And it’s only early October.
The good news about the season is, the unemployment rate has dropped in August, which indicates a brighter holiday season as the National Economic Development Authority (NEDA) said in a statement.
With inflation reaching a four-year low of 1.9 percent, NEDA Secretary Arsenio M. Balisacan stressed that the positive results of the labor force survey could contribute to a more vibrant holiday season.
The labor market showed resilience in August, with the unemployment rate falling to 4.0 percent from 4.7 percent in July and 4.4 percent in August 2023, according to data from the Philippine Statistics Authority (PSA).
Other significant information in the PSA report that indicates a brighter holiday season:
Wage and salary workers constituted the largest segment of the workforce at 62.4 percent in August 2024, reflecting an expanding middle class engaged in formal, stable employment.
The wholesale and retail sectors were the primary contributors to job growth in August 2024, adding 1.15 million workers. Among these, private sector workers represented 76.4 percent, while the public sector accounted for 16.2 percent.
The total number of employed Filipinos reached 49.2 million in August 2024, an increase from 47.7 million in July. This represents an addition of 1.45 million jobs month-on-month.
Historically, the employment rate rises during the holiday season and it is expected that employment in the last quarter will increase.
Finance Secretary Ralph G. Recto expects further improvements in the local labor market in the coming months, driven by decreasing inflation and the approaching holiday season.
“I am very glad of the back-to-back good news. We can expect more jobs to open up for our countrymen due to the continuous decrease in the inflation rate which will strengthen the income of our businesses and every family,” he said.
More jobs will allow Filipino families to spend more, boosting the economy.
The increased purchasing power during the holiday season should also guide spending habits to keep economic activity going. Consumers can do that by buying locally-made products. There is a wide array of products for gift giving, especially food products, and from local manufacturers, most of them small businesses.
The micro, small and medium enterprises (MSMEs), which comprise 99.5 percent of registered businesses in 2022, play a significant role in the economy. They help reduce poverty by creating jobs for the country’s growing labor force, generating 62 percent of the country’s total employment. An increased demand in their products will open more jobs which will generate more spending activity. It is a cycle that starts with the consumer.
There are many MSMEs in one’s community operated by neighbors and people you likely know. Start the Christmas shopping there.