QUEZON CITY, (PIA) — The unemployment rate in the Philippines fell to 3.7% in September 2024, signaling a positive shift in the labor market as the country aims to leverage its demographic advantages for long-term economic growth, Finance Secretary Ralph G. Recto announced.
“This is a sign that we are harnessing our competitive advantage by providing more economic opportunities for our people,” Recto said, emphasizing the Philippines’ favorable demographics as a crucial asset.
With a median age of just 25, the Philippines boasts the youngest population among the ASEAN-6 countries.
According to an HSBC study, the working-age population in the Philippines is projected to grow by 15% from 2025 to 2035, the fastest growth rate in the region. Recto noted the increasing global recognition of Filipino talent, stating that international investors are keen on the country’s skilled and English-proficient workforce.
“The world is taking notice of the immense potential of Filipino talent,” he added, highlighting the country’s position on investors’ radars during recent economic briefings abroad.
In September, the labor market showed robust performance, with the unemployment rate decreasing from 4.0% in August and 4.5% in September 2023. The underemployment rate also remained low at 11.9%.
The total number of employed Filipinos rose to 49.87 million, an increase from 49.15 million last month and 47.67 million in September 2023, translating to an additional 2.2 million jobs over the past year.
Recto pointed out that the growing participation of women and youth in the labor force is a promising trend for the economy. With the holiday season approaching, he anticipates increased employment opportunities in sectors like retail and food services.
In September, approximately 883,000 new entrants joined the workforce, with 802,000 (90.8%) being youth. This increase raised the youth employment rate to 90%, up from 88% in August and 86.9% last year.
The Philippines also saw an increase in employed female workers, with 1.34 million women joining the labor force due to reduced barriers to employment. The services sector continued to dominate, comprising 62.8% of total employment, followed by agriculture (19.9%) and industry (17.4%).
The administrative and support services sectors were significant contributors to job growth, adding 735,000 workers compared to the previous year. Other sectors that saw job additions included wholesale and retail trade (486,000) and public administration (333,000).
Despite the positive trends, the government is not resting on its laurels. The National Economic and Development Authority (NEDA) is finalizing the Trabaho Para sa Bayan (TPB), a 10-year master plan aimed at employment generation. This plan seeks to strengthen partnerships among industry, academia, and government to address skill mismatches and enhance workforce competitiveness.
Additionally, the Technical Education and Skills Development Authority (TESDA) has launched a national blueprint for technical vocational education and training, with a focus on preparing Filipinos for future job markets. Initiatives like the “Green Skills for Green Jobs” program aim to cultivate a skilled workforce for the renewable energy sector.
The government is also prioritizing the implementation of an Artificial Intelligence roadmap to foster research and development talent. The accelerated rollout of the Public-Private Partnership (PPP) Code is expected to enhance infrastructure and create quality jobs.
Moreover, the anticipated enactment of the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) bill is expected to attract capital-intensive investments, generating jobs and enhancing the economy’s value-added sectors. (JEG/PIA-NCR)
