The unemployment rate in the Philippines remained stable at 5% in March, showing a slight decrease from 5.1% in February, according to the Philippine Statistics Authority (PSA). This translates to approximately 2.58 million Filipinos without jobs, down from 2.66 million the month prior.
However, this figure represents a rise from 3.9% in March of last year, which equates to 1.93 million jobless individuals, indicating a year-on-year decline in employment.
Economists have varying interpretations of these statistics. Analysts from Chinabank Research highlight the steady unemployment as a sign that economic activity has not drastically worsened due to the ongoing oil crisis driven by geopolitical tensions.
The latest figures offer some optimism that the conflict has not led to a substantial deterioration of economic activity.
Chinabank Research
Conversely, labor economist Leonardo Lanzona from Ateneo de Manila University expressed concern over the numbers. He argues that a declining unemployment rate coupled with a shrinking labor force indicates a troubling trend.
A falling unemployment rate alongside falling participation isn’t labor market resilience. It’s labor market retreat.
Leonardo Lanzona
The average unemployment rate for the first quarter of the year stood at 5.3%, exceeding the government's target of 4% to 5%.
The labor force participation rate has also dropped, with 51.65 million Filipinos participating in the workforce, down from 52.09 million in February.
Despite the overall unemployment figure, the underemployment rate increased to 12.3%, with 6.03 million employed individuals seeking additional work.
State officials noted that declining labor participation may be due to individuals prioritizing education and family responsibilities, alongside perceptions of a lack of available jobs.
Job losses were observed in sectors like fishing and manufacturing, which are heavily affected by rising fuel prices. However, the transportation sector surprisingly added 507,000 jobs year-on-year.