PH Records Historic Low Unemployment Rate Of 4.2% In October 2023

The Philippines recorded a historic low unemployment rate of 4.2% in October 2023, down from 4.5% in the previous month.

This marks the lowest level since April 2005 and aligns with the rate posted in November 2022. I Photo: Philippine Information Agency

This marks the lowest level since April 2005 and aligns with the rate posted in November 2022. The figure translates to 2.1 million unemployed individuals, a decrease from the 2.2 million reported in October 2022.

The year-to-date (YTD) unemployment rate averaged 4.6%, significantly below the 5.3 to 6.4% target for 2023 outlined in the Philippine Development Plan (PDP) 2023-2028.

The employment rate in October 2023 rose to 95.8%, the highest level since April 2005 and consistent with the rate in November 2022.

In October 2023, the number of employed individuals reached 47.8 million, contributing to a year-on-year employment gain of 739,000 and a monthly gain of 136,000. Sectors such as accommodation and food service activities, administrative and support, and transportation and storage saw notable employment increases, reflecting greater economic activities.

Despite employment gains, some sectors experienced losses, including wholesale and retail trade, repair of motor vehicles and motorcycles, mining and quarrying, and manufacturing.

By share of employment, the services sector accounted for 60.1%, followed by agriculture (22.2%) and industry (17.8%). The labor force participation rate (LFPR) in October 2023 was registered at 63.9%, equivalent to 49.9 million Filipinos who were either employed or unemployed.

The underemployment rate in October 2023 stood at 11.7%, significantly lower than the rate in October 2022 (14.2%).

While the youth presence in the labor force slightly decreased, the overall employment conditions in the Philippines remained generally favorable despite global external challenges, elevated inflation, and waning pent-up demand.

Finance Secretary Benjamin E. Diokno emphasized the government's commitment to proactive measures to minimize adverse impacts and support the implementation of structural reforms.

The government aims to maintain macroeconomic stability, create more employment opportunities, and invest in human capital development, especially for the youth. The Finance Chief highlighted the importance of bolstering investments and sustaining high and inclusive growth in the medium term.

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