Twin good news about the economy were released by the Philippine Statistics Authority (PSA) last week. First, inflation declined for the fifth consecutive month in June, reaching 5.4 percent compared to 6.1 percent in May. Second, the country’s unemployment rate in May this year stood at 4.3 percent, compared to 6.0 percent a year ago and 4.5 percent in the previous month. Both stories provide proof positive that the country’s economic recovery is following a steady upward trajectory. Inflation reduction means prices of basic goods associated with food, clothing, shelter, transportation and communications are stabilizing across all regions, with the Metro Manila index accounting for nearly one-fourth of the total. According to the PSA, the decrease in fuel costs and a slower rise in food prices were the main factors responsible for lower inflation. However, the average inflation rate for the first half of the year stood at 7.2 percent or significantly higher than the government’s target band of 2.0 percent to 4.0 percent. President Ferdinand R. Marcos, Jr., who holds the agriculture portfolio concurrently, has attributed the decreasing inflation rate to improved agricultural production and better management of distribution across the supply chain. As a case in point, he cited that sugar prices have been stabilized due to timely importation and orderly allocation among industrial, commercial and household users. According to the PSA, food inflation in June slowed to 6.7 percent compared to 7.5 percent in May. Non-food inflation also slowed down to 4.1 percent from five percent in the last two months. Close on the heels of upbeat news on inflation decline was the report on a fall in the unemployment rate to 4.3 percent in May. While this was only slightly lower than the 4.5 percent jobless rate in April, it was a significant drop from the year-ago level of 6.0 percent. The number of unemployed Filipinos has declined to 2.17 million, from the 2.26 million jobless individuals in April and the 2.93 million unemployed in May last year. — “the second lowest unemployment rate on record since April 2005,” the PSA reported. Equally significant is the drop in the underemployment rate14.5 percent to 11.7 percent, equivalent to one million fewer underemployed persons. High-quality job creation is the government’s key strategy as the pace of digital transformation has accelerated. The Filipino workforce has to be reskilled and upskilled to take on jobs of the future that require broader brainpower aside from physical prowess. Such strategies for accelerating the pace of economic recovery will likely be amplified in President Marcos’ second State of the Nation Address (SONA) that will take place two weeks from now.