Unemployment Rate in the Philippines Decreases to 4.5% in June 2023, Boosting Employment Prospects
According to the Philippine Statistics Authority, the unemployment rate in the Philippines has dropped to 4.5% in June 2023. This is a significant improvement from 6% a year ago, indicating a positive trend in the country’s employment landscape. Although there was a slight increase from 4.3% in May, the overall decrease in unemployment is a promising development.
National statistician and civil-registrar general Dennis Mapa announced during a briefing that the employment rate in June was estimated to be 95.5%. This is higher than the reported 94.0% registered in the same month last year, but slightly lower than the 95.7% in May 2023.
In terms of magnitude, the number of employed persons in June 2023 reached 48.84 million, compared to 46.59 million in June 2022. In May 2023, the number of employed persons was 48.26 million. These figures demonstrate a positive growth in employment opportunities, with an increase of 2.25 million employed individuals within a year.
The number of unemployed persons in June decreased to 2.33 million from 2.99 million in June 2022, marking a year-on-year decline of 663,000. However, there was a marginal increase of 159,000 compared to the number of unemployed persons in May 2023.
To sustain and further improve these employment prospects, the government is committed to labor upskilling. The National Economic and Development Authority (NEDA) emphasizes the importance of enhancing employability and maximizing the benefits of the country’s demographic dividend.
The employment rate among the youth, aged 15 to 24, was estimated at 90.1% or 6.45 million individuals. This is higher than the 88.2% recorded in June 2022. Recognizing the expansion of the young workforce, the government aims to focus on training and upskilling to enhance their employability for high-quality and high-paying jobs.
The Philippine Development Plan 2023-2028, specifically Chapter 4, outlines recommendations for equipping the young workforce with the necessary skills to improve the income-earning potential of Filipino workers. It highlights the importance of investing in technical and vocational education and training centers, digitalization, and innovation facilities to enhance the skills and competitiveness of the Philippine workforce.
These efforts are crucial, as new and disruptive technologies continue to shape the job market. NEDA Secretary Arsenio Balisacan stresses the need to modernize training and vocational education facilities and enhance educational qualifications, competencies, and skills. Adapting to emerging technologies like artificial intelligence is vital to meet the demands of the evolving economy.
Furthermore, the demographic transition resulting from a decline in the total fertility rate of Filipino women aged 15 to 49 years contributes to an increase in the working-age population. When accompanied by targeted investments in human capital and high-quality job opportunities, this translates to a demographic dividend.
In conclusion, the decrease in the unemployment rate in the Philippines to 4.5% in June 2023 represents a positive shift in the country’s employment prospects. The government’s commitment to labor upskilling and investing in the young workforce is paramount to sustaining this progress. By equipping Filipino workers with the necessary skills, the country can enhance their employability and seize the opportunities brought about by emerging technologies.
