The Department of Finance (DOF) said the decrease in the unemployment rate in May shows that the country is making progress towards its goal of becoming an upper-middle-income country by 2025.
In a statement, Finance Secretary Ralph G. Recto said the year-on-year decrease in the number of unemployed Filipinos indicates the country's positive progress towards achieving higher income status and reaching a single-digit poverty rate by 2028.
“We are seeing encouraging signs that our economic goals are on track and within reach on the back of the continued improvements in the labor market and after we reached a record-high GNI [gross national income] per capita last year,” Recto said.
The Philippine Statistics Authority reported that the unemployment rate dropped to 4.1 percent from 4.3 percent in the same period last year, translating to 61,000 individuals.
The report also showed that more Filipinos engaged in quality jobs as underemployment fell to 9.9 percent in May, the lowest since April 2005.
This comes as wage and salary workers continue to contribute the largest share of the total employed individuals at 63.0 percent or 30.8 million in May.
Among the wage and salary workers, private establishments employed 77.3 percent (23.8 million), while the public sector composed 15.3 percent (4.7 million).
Along with the strong employment figures, Recto also underscored that the Philippines’ historic high GNI per capita of $4,230 in 2023 signifies profound improvements in the standard of living of Filipinos.
“Achieving this all-time high GNI per capita reflects the Philippines’ robust economic growth and strong macroeconomic fundamentals,” he said.
GNI per capita measures the economic output per citizen, including both domestic and international earnings, wherein higher GNI per capita the country has equals to greater economic prosperity and an increased standard of living.
“Our main focus now is sustaining this momentum for the Philippines to graduate into an upper middle-income status by next year and reduce the poverty rate to only 9 percent by the end of the President’s term,” Recto added.
“We are working doubly hard to ensure that all Filipinos reap the rewards of strong economic growth through more comfortable lives and more high-quality jobs,” he further said.
The World Bank defines upper-middle-income countries as those with GNI per capita ranging between $4,516 and $14,005 for the fiscal year 2025.