The Philippines’ unemployment rate dropped to 3.9 percent, equivalent to 2.03 million jobless Filipinos, in August, easing from the three-year high of 5.3 percent recorded in July, as employment gains returned across key sectors, the Philippine Statistics Authority (PSA) reported on Wednesday, Oct. 8.

This translated into an employment rate of 96.1 percent, or 50.1 million employed Filipinos, higher than the 94.7 percent, or 46.05 million Filipinos with jobs, last July, and 96 percent, or 49.15 million employed Filipinos, in August last year.

The latest PSA data showed that the decline in unemployment contributed to a drop in underemployment in August, which eased to 10.7 percent, compared to 14.8 percent in the previous month and 11.2 percent in the same month last year.

PSA chief Dennis Mapa attributed the rebound to the recovery of industries that were affected by a series of typhoons in July. “We saw a big adjustment in the month of July. The main reason for this was the series of typhoons, which had major effects on several industries, particularly agriculture.”

He added that the largest declines in July were in agriculture, retail trade, and construction, but these sectors have now largely recovered. “In a way, the job losses in July were only temporary, as many of those who lost their jobs that month were from the same industries that have now returned,” Mapa noted

Mapa added that the month-on-month increase in employment in August was mainly driven by the agriculture and forestry sector, which gained 1.35 million jobs. This subsector had previously seen job losses due to flooding and typhoons.

Within agriculture, the growth was largely attributed to the cultivation of vegetables, which added 309,000 jobs; leafy and fruit-bearing vegetables, which increased by 246,000; corn farming, which added 218,000; and coconut farming, which rose by 128,000. Overall, in agriculture, including farming, there was a total net increase of 293,000 jobs.

Mapa also noted that employment gains were also observed in wholesale and retail trade, particularly in retail sales in non-specialized stores that sell food, beverages, and tobacco, which added close to 900,000 jobs. “These were mostly workers in grocery stores and sari-sari stores who had been unable to work in July due to the typhoons but have since returned to their jobs,” Mapa added.

“August is better in terms of weather conditions, better than July,” Mapa said, noting that people were able to return to their jobs during the month.

Mapa added that the construction sector also saw job losses in July, but there was a net increase of 672,000 jobs in August, most of which were in building construction. Meanwhile, fishing and aquaculture also recorded an increase of around 346,000 jobs.

Mapa cautioned that there is a risk in employment in September because of the numerous typhoons. He added that while a substantial portion of the labor market is protected from such disasters, there are still sectors—like agriculture and components of retail trade—that are dependent on weather conditions.

Mapa also noted that the earthquake that occurred in Cebu last month could also have an impact on employment.

Mapa noted that the number of unpaid family workers also rose substantially, primarily in the agriculture sector. These include those who assist the main workers and can also be self-employed. Unpaid family workers rose from 1.8 million in July to 3.51 million in August, with the largest increase in agriculture, at 967,000, followed by wholesale and retail trade, at 671,000, “This is where the unpaid family workers came from,” Mapa explained.

He also emphasized that the number of wage and salary earners increased to 32.27 million in August, up from 31.64 million in July. The growth came from private establishments, which added 349,000; private households, which added 337,000; and the government and government-owned and/or -controlled corporations (GOCCs), which added 11,000. “The largest sources of the increase in August compared to July came from private establishments and private households,” he said.

Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan stated that the August labor force survey (LFS) results indicate a robust labor market, reflecting the government’s efforts to promote the creation of quality jobs.

Balisacan added that these gains are the result of the government’s commitment to expanding decent and productive employment opportunities.

“These positive labor market indicators reflect our collective effort to sustain economic growth while ensuring that more Filipinos benefit from it. We are working to generate not just jobs, but quality jobs that will raise incomes, reduce underemployment, and improve the overall well-being of our people,” Balisacan added.

The country’s chief economist stated that DEPDev intends to capitalize on these positive labor market trends by implementing policies and strategies outlined in the Trabaho Para sa Bayan (TPB) Plan 2025-2034, which aims to guide the Philippine workforce toward higher-value sectors and create better-quality job opportunities.

“Guided by the TPB Plan, we aim to support the transformation of the labor force toward higher-paying and more productive jobs by attracting investments, developing a competitive and skills-ready workforce, and strengthening labor market governance to effectively respond to evolving conditions,” Balisacan said.

Balisacan also highlighted the need to safeguard vulnerable workers in the face of global uncertainties, domestic challenges, and increasing climate-related impacts by reinforcing programs that enhance labor market resilience.

(Ricardo M. Austria)