STAY UPDATED: August 2024 Employment Stats Reveal Positive Trends in Philippine Labor Market

by | Oct 17, 2024 | Info Notes

The Philippines’ labor market continues to show positive signs of recovery, with the latest Labor Force Survey (LFS) for August 2024 revealing an increasing employment rate and a declining unemployment rate. The survey, conducted by the Philippine Statistics Authority (PSA), shows a resilient economy, with a record-high employment rate of 96%, exceeding the previous month’s rate of 95.3% and the August 2023 rate of 95.6%, reflecting a steady recovery in the job market. This translates to a total of 49.15 million Filipinos employed, a significant increase from 48.07 million a year earlier and surpassing the 47.70 million recorded in July.

The unemployment rate for August 2024 dropped to 4%, a decrease from 4.4% in the same month last year and down from 4.7% in July of this year. This translates to about 2.07 million unemployed persons, a significant drop from the estimated 2.22 million unemployed Filipinos in August 2023 and 2.38 million in July 2024. According to PSA, this decrease in unemployment was largely driven by a substantial influx of Filipino women into the labor force, particularly in the services sector. The labor force participation rate (LFPR) also saw an upward trend, reaching 64.8%, slightly higher than the previous year’s rate of 64.7% and notably increased from July’s rate of 63.5%.

However, despite the positive trends in employment and unemployment, the underemployment rate, which measures the proportion of employed individuals who want to work longer hours or have an additional job, remained relatively high, decreasing to 11.2% in August 2024, down from 11.7% in August 2023 and 12.1% in July 2024. This indicates that while more Filipinos are finding jobs, a considerable number are still underemployed, highlighting the need for policies and measures that address the ongoing issues related to job quality.

Sector-wise analysis reveals that the services sector continues to dominate employment figures, accounting for 63.3% of total employment, followed by agriculture sector at 19.3% and industry sector at 17.4%. The wholesale and retail trade sector saw the highest annual increase in employment, adding approximately 1.13 million jobs. On the contrary, several sectors experienced declines, particularly agriculture and forestry, which lost around 1.68 million jobs compared to last year, alongside significant losses in fishing and aquaculture as well as manufacturing.

Furthermore, the LFS provides data on youth LFPR, employment, underemployment, and unemployment rates. While the youth LFPR saw a decrease from 34.9% in August 2023 to 32.2 percent in August 2024, the youth employment rate saw a positive trend, rising from 85.2 percent in July 2024 to 88 percent in August 2024. The youth underemployment rate also saw a slight decrease from 11.9 percent in July 2024 to 10.1 percent in August 2024. However, the youth unemployment rate remained relatively high, at 12 percent in August 2024.

In sum, the Philippine labor market’s progress in August 2024 signals resilience and recovery. With a record-high employment rate, a decrease in unemployment, and increased labor force participation, the economy shows encouraging signs of growth. While underemployment remains a challenge, the overall trend is positive, driven by significant gains in the services sector and a substantial influx of women into the workforce. This steady improvement offers a beacon of hope for continued economic stability and development in the coming months.

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Edgardo Lacson

Chairman of the Board

Edgardo G. Lacson is currently the Chairman of the Board of the Employers Confederation of the Philippines (ECOP), and Director of the Philippine Stock Exchange (PSE). He was formerly President and Honorary Chairman of the Philippine Chamber of Commerce and Industry (PCCI).  He was the President of ECOP from 2010 to 2016. Ed Lacson also serves as the President of various business firms, including MIS Maritime Corporation, Safe Seas Shipping Agency, Marine Industrial Supply Corporation, and EML Realty. He serves as Chairman of Metrostore Corporation, MIL Export Philippines, Beacon Environmental Management Services and Primelode, among others.

He is likewise Trustee of both the De La Salle Canlubang, Inc. and Philippine Petroleum Sea Transport Association (PHILPESTA), Managing Director of Link Edge, and a member of the Management Association of the Philippines (MAP), Philippine Interisland Shipping Association (PISA), and Makati Business Development Council (MBDC).

An alumnus of then De La Salle College and now De La Salle University where he earned his degree in Bachelor of Science in Commerce (BSC) Major in Accounting, Ed Lacson indeed through the years has expanded his horizons.

Edgardo Lacson serves as Honorary Chairman at PCCI. His previous business affiliations include the Philippine National Oil Company (PNOC), Marine Chemical Corporation, VLK Traders Philippines, Inc., and Esso Standard Eastern.