The number of jobless Filipinos dropped below two million in November of last year, leading to the lowest unemployment rate in the country in almost two decades, the Philippine Statistics Authority (PSA) reported.

PSA Undersecretary and National Statistician Claire Dennis S. Mapa, the announced on Tuesday, Jan. 9, that the estimated number of unemployed individuals in November was 1.83 million, a decrease from the 2.18 million recorded in the same month in 2022.

This decline, from 2.09 million in October, resulted in the unemployment rate dropping to 3.6 percent from the 4.2 percent reported in both November 2022 and October 2023.

The National Economic and Development Authority (NEDA) emphasized that this marks the lowest jobless rate recorded since the PSA changed its unemployment measurement approach in April 2005.

According to the PSA, out of every 1,000 people in the labor force, 36 were looking for work but could not find a job in November.

The labor force participation rate, meanwhile, slid to 65.9 percent from 67.5 percent in November 2022. This translates to an estimated 51.47 million Filipinos aged 15 years and older in the labor force, lower than the 51.88 million in the same month in 2022.

The decline was mainly due to reduced participation of young people (34.4 percent from 40 percent) and women (55.4 percent from 57.8 percent) in the labor force, influenced by family responsibilities, schooling, and age-related factors.

NEDA Secretary Arsenio M. Balisacan emphasized the need to expand the digital economy, including the digitalization of Micro, Small, and Medium Enterprises (MSMEs) and startups, to address the declining labor force and increase labor market gains in 2024 and beyond.

"Digitalization enables alternative work arrangements, particularly for the youth, women, and those in the creative sector. This will help address the declining labor force," the NEDA chief said.

"We will take full advantage of the liberalization reforms intended to attract investments in the Philippines, especially in digital infrastructure. Upgrading our infrastructure will attract investments that generate high-quality jobs," the government's chief economic planner added.

He added that the government will further support a more productive, agile, and adaptive workforce by passing and implementing crucial regulatory reforms, such as the Apprenticeship Bill, Lifelong Learning Bill, and the Enterprise Productivity Act.

He also underscored the need to establish a regulatory framework to allow alternative work arrangements, including part-time work, even in the formal economy.

"Allowing part-time work even in the formal sector will expand opportunities for lifelong learning, work experience in an organized setting, and coverage in social protection systems," Balisacan said.

Meanwhile, the underemployment rate also eased to 11.7 percent in the same survey period from 14.4 percent in November 2022.

The number of underemployed persons, or those who expressed the desire to have an additional job and work hours, was estimated at 5.79 million last November, lower than the 7.16 million in November 2022.