Two key indicators of the country’s state of economic health provided ample assurance amid volatility in other spheres, as the Philippine Statistics Authority announced its latest inflation and jobs update.

First, the inflation rate inched up to 3.9 percent last May, compared to 3.8 percent in April; but it was lower than 6.1 percent in May 2023. Second, the unemployment rate at 4.0 percent as of April this year was better than the 4.5 percent rate recorded in April 2023, even if it was slightly higher than the March 2023 figure of 3.9.

Households and commuters bore the brunt of price increases as the index for housing, water, electricity, gas and other fuels at 0.9 percent was higher than the year-ago level of 0.4 percent. On a similar trajectory was the 3.5 percent rise in the transport index in May 2024 compared to the previous month’s 2.6 percent.

Lower inflation for vital commodity groups such as food, clothing and footwear, health, recreation, restaurants and accommodations, and personal care provided additional relief. Significantly, vegetable, rice and fish prices posted a downward trend.  

Inflation in Metro Manila accelerated to 3.1 percent in May 2024 compared to 2.8 percent a month earlier. In contrast, it was one percent higher in other regions at 4.1 percent, the same rate in April 2024.

The 4.0 percent unemployment rate translates to 2.04 million unemployed individuals versus 2.15 million in January 2024 and 2.26 million in April 2023. Conversely, the employment rate at 96.0 percent topped the January 2024 and April 2023 figure of 95.5 percent. These employment levels translate into 48.36 million employed persons, much higher than the 45.94 level attained in January 2024, and higher by 300,000 than in April 2023.

On a broader scale, if we were to include all employable Filipinos from 15 years old, the labor force participation rate in April 2024 was one percent lower than the 65.1 percent clip attained in April 2023, but 3.0 percent higher than the January 2024 level.

Meanwhile, President Marcos, Speaker Martin Romualdez, and key Cabinet members have been touring the countryside — visiting Mindoro; Bicol, Caraga; SOCCSKSARGEN and Davao regions; Maguindanao; Zamboanga Peninsula; and Tawi-Tawi, — to deliver ayuda to farmers and fisherfolk hard-hit by El Niño, and to demonstrate the government’s preparedness to provide vital social safety nets. Inter-agency efforts have also been mounted to mitigate supply chain inefficiencies, as well as enable the government to offer lower-priced quality rice and essential food items.

Trabaho Para sa Bayan (TBP), a comprehensive employment generation and recovery master plan focuses on upskilling and reskilling initiatives as well as support for micro, small, and medium enterprises, while zooming in on priority sectors such as energy, logistics and tourism.

President Marcos issued last April 30, Executive Order No. 59, to “expedite the implementation of the country’s infrastructure flagship projects, improve the ease of doing business...and further encourage investments and job creation in the country.” Finally, the government is putting into place next-generation reforms embodied in the Konektadong Pinoy Bill to equip Filipino workers with appropriate skills for the digital age that will facilitate their transition towards higher-income jobs.