AN ESTIMATED 2.04 million Filipinos were unemployed in October or equivalent to 4.7 percent unemployment rate, the Philippine Statistics Authority (PSA) said Tuesday.
The October unemployment rate was the lowest in the past decade, according to the National Economic and Development Authority (Neda), the agency which oversees PSA.
“With the decrease of unemployment in October 2016, our implied full-year unemployment rate will be 5.5 percent, exceeding the government target for 2016 of 6.5 to 6.7 percent,” Neda Director General Ernesto Pernia said.
The unemployment rate among the youth continued to decline in October 2016 at 11.6 percent, also a record low for all October rounds of the Labor Force Survey (LFS) since 2006. Likewise, the share of inactive youth—those who are neither studying nor employed—has consistently been declining in the past four years and has dropped to 20.5 percent in October 2016.
“While this shows progress, it is important to note that the unemployment rate of the youth is still twice the national unemployment rate and thrice the unemployment rate of 25 to 54 age group. This shows that we need to equip our youth with the right skills and experience to be able to compete with seasoned workers,” said Pernia, also Socioeconomic Planning Secretary.
Underemployment in October increased to 18.0 percent, making the full-year 2016 underemployment rate of around 18.4 percent. Underemployment was prevalent among those working in private households and those employed in family business, Neda said.
Meanwhile, employment rate increased to 95.3 percent to reach 41.7 million Filipinos employed. This rate is highest among the results in all of the previous October rounds of the LFS since 2006.
The services sector remained the top employment contributor with a share of 54.9 percent or 22.9 million of the total employed. The industry sector, meanwhile, accounted for 17.2 percent or 7.2 million of the total employed in October 2016, driven largely by strong growth in manufacturing and construction. (SDR/Sunnex)