Job Quality in the Philippines Improves According to March 2023 PSA Data
The unemployment rate in the Philippines decreased as the quality of jobs improved in the middle of the economy’s recovery from the pandemic.
According to the Philippine Statistics Authority (PSA) on Monday, May 8, a nationwide survey of 11,093 households revealed that 2.42 million Filipinos were unemployed or out of business in March. This figure is lower than the result last February of 2.47 million.
The PSA results translate to a 4.7% unemployment rate which is less than the February data of 4.8%. Moreover, the PSA data revealed that 5.44 million Filipinos were willing to work for longer hours to earn additional income. This translates to an 11.2% underemployment rate for March, which is lower than the 12.9% figure of the previous month.
National Statistician Claire Dennis Mapa calculated that this is the lowest underemployment rate in the Philippines since April 2005 when the definition of underemployment was changed.
According to the data, the top industries that shed the most jobs in March included agriculture and forestry (-607,000), financial and insurance activities (-156,000), manufacturing (-136,000), human health and social work activities (-130,000), and information and communication (-78,000).
Meanwhile, economic subsectors with an improved workforce in March included transport and storage (+533,000), accommodation and food service (+447,000), wholesale and retail trade; repair of motor vehicles and motorcycles (+407,000), construction (+384,000), and other service activities (+344,000).
Experts such as China Banking Corp. Chief Economist Domini Velasquez and ING Bank in Manila Senior Economist Nicholas Antonio Mapa noted that the data would affect the Bangko Sentral ng Pilipinas’ (BSP) next rate-setting action.
Velasquez stated, “We think that the current unemployment rate can already be considered to be the sweet spot of the labor market.”
Furthermore, Mapa added, “BSP is a data-driven central bank and no doubt unemployment data will be considered. That being said, BSP will likely weigh varying data variables according to its mandate with price stability still its primary mandate followed by financial market sustainability, conducive to sustainable growth.”
