The unemployment rate is falling, unemployment is increasing in July 2018
MANILA, THE NETHERLANDS – Unemployment in the country decreases as the unemployment rate fell to 5.4 percent in July from 5.6 percent in the same month of last year, although a high level of joblessness persists, according to data from the Philippine Statistics Authority (PSA).
Based on the results of the July Labor Force Survey (LFS), the PSA reported that employment in July was estimated at 94.6 percent, slightly higher than the 94.4 percent rate in July last year.
The PSA said that an estimated 40.7 million people were employed in July, up from 40.2 million last year.
"This is the highest of the previous rounds of July in the last 10 years and comparable to July 2016, with an estimated net job creation of 488,000 and reaching a total employment of 40.7 million," said the National Economic and Development Authority. (NEDA).
Socio-economic planning Secretary Ernesto Pernia said that the figures for employment in July put the government on track to reach its target of 900,000-1.1 million jobs by 2018.
"In the first three rounds of the Labor Force Survey, an average of 1.17 million extra jobs have been created so far, and with remarkable improvements the government can not stop its efforts to continually improve the employment situation in the country," said Pernia.
The services sector represented more than half of the total employment in the country by 57.5%, resulting in an additional employment of more than 1.1 million.
This was followed by the agricultural sector, accounting for 23.1 percent of total employment.
In addition, the industrial sector accounted for 19.4 percent of total employment and recorded positive employment growth of 2.2 percent, or 172,000 additional jobs. In the subsectors of the industry, the processing industry contributed the largest in the period.
"This is in line with the strong expansion plans of manufacturing companies as a result of a more positive employment outlook for the period," NEDA said.
Despite the increase in total employment, the lack of employment increased to 17.2 percent or an estimated 7 million employees in July of 16.3 percent or 6.5 million employees in the same period last year.
Unemployment means full-time workers looking for extra hours of work.
Moreover, youth unemployment remains relatively high at 14.1 percent.
"The proportion of inactive young people remains a matter of concern: the government must equip students with industry-related competences and increase their chances of working experience.A stronger link between the academic industry and the sector should enable students to better orientate themselves towards career perspectives," said Pernia.
"To meet our employment goals, the government must provide an environment conducive to creating more and better jobs and prioritize policies and programs dealing with the problems of unused young people, unemployed young people. , lack of jobs and vulnerable workers, "added Pernia.
He said poor, low-skilled workers should have access to education and skills development programs that offer opportunities for lifelong learning and that will respond to the changing needs of the labor market, especially in the context of disruptive technologies.
He also insisted on reform of labor law to provide workers with better social protection, while at the same time increasing labor market flexibility in order to maintain competitiveness and create more jobs.
"This reform package should include unemployment insurance as an additional safety net and an important complement to labor market flexibility," Pernia said.
"In other words, we need to keep the labor market running smoothly so that more employees and employers can benefit more from growth opportunities, while still ensuring the welfare of our employees," added Pernia.