President Marcos’ chief economic manager said that the country’s labor force remains robust, and lower inflation is expected to increase jobs in the wholesale and retail trade sectors through higher spending.
Finance Secretary Ralph G. Recto said that the ongoing decline in inflation “will benefit businesses, especially those in the wholesale and retail sectors, as this means our people will have more money to spend on non-essential items,” adding that the rise in agriculture jobs indicates a recovery from El Niño's impact.
In July 2024, the wholesale and retail trade sectors emerged as the top contributors to employment growth, adding 1.07 million workers to the labor force. This was followed by the agriculture and forestry sub-sector, adding 936,000 more workers.
The increase in employment led to a decline in the country's unemployment rate to 4.7 percent in July, from 4.9 percent in the same month last year and significantly below the pre-pandemic rate of 5.1 percent in 2019.
The underemployment rate also improved to 12.1 percent in July from 15.9 percent a year earlier and better than the pre-pandemic rate of 13.8 percent.
Wage and salary workers comprised 63.8 percent (30.4 million out of 47.7 million) of the employed population in July 2024, signaling a growing middle class with more Filipinos in formal, stable jobs.
Private establishments employ 78.3 percent (23.8 million) of wage and salary workers, while the public sector accounts for 14.3 percent (4.4 million).
"This means that for every six jobs in the private sector, there is only one job in government. This shows that private businesses are the backbone of our labor market,” the finance chief explained.
He further explained that creating a supportive environment for the private sector is crucial for job creation, income growth, economic expansion, and poverty reduction, which is the focus of current efforts.
In a statement, the DOF said that the government is fast-tracking economic liberalization laws, the PPP Code, and amendments to the Corporate Recovery and Tax Incentives for Enterprises Act to boost investment attractiveness and create more job opportunities through international companies and export-oriented industries.
Moreover, it said that the government is expanding the Build Better More program to provide more jobs for construction workers and create opportunities in engineering, architecture, and consultancy, developing Filipino expertise and talent.
Recto stressed that the government will focus on investing in human capital development to better prepare Filipinos for high-quality jobs. (Derco Rosal)