UNEMPLOYMENT DOWNTO 5.7%

Underemployment also at lowest level in more than 10 years

The jobless rate eased last April while the underemployment rate fell to its lowest in more than 10 years, the government reported yesterday.

Results of the Philippine Statistics Authority’s (PSA) April 2017 Labor Force Survey showed that the unemployment rate declined to 5.7 percent from 6.1 percent during the same month last year.

The number of employed Fil- ipinos in April reached 40.27 million, down from 40.66 million a year ago, but the PSA explained that the labor force participation rate dropped to 61.4 percent from 63.5 percent in 2016.

Last April, the labor force population, which consisted of those with jobs as well as the jobless aged 15 and up, stood at 69.6 million, up from 68.17 million a year ago.

As for the underemployment rate, state planning agency National Economic and Development Authority (Neda) said it dropped to a low of 16.1 percent in April.

The number of underemployed Filipinos declined to 6.47 million from 7.43 million a year ago, equivalent to 962,000 who found better jobs between April last year and April this year.

The PSA defines the underemployed as “employed persons who express the desire to have additional hours of work in their present job, or to have additional job, or to have a new job with longer working hours.”

Neda noted that the agricul- ture sector gained 125,000 jobs while manufacturing had 55,000 additional workers compared with a year ago.

“Increased activity confirms the renewed positive outlook of exporting firms that had anticipated increases in the volume of export production,” Socioeconomic Planning Secretary and Neda chief Ernesto M. Pernia said in a statement.

The services sector, however, saw a net employment loss of 557,000 during the period.

“This loss could be an effect of the 2016 election spending fully tapering off. It is possible that recent changes in labor policies regarding contractual workers may have had an adverse effect on firms’ hiring decisions,” Pernia explained.

Under the Philippine Development Plan (PDP) 2017-2022, the Duterte administration aims to reduce the unemployment rate to as low as 3 percent by 2022.

To achieve the six-year employment target, “the government should innovate employment opportunities by develop- ing low-cost, labor-intensive but efficient methods for meeting current infrastructure needs and essential health and education services,” Pernia said.

“Close coordination between sectors should also be in place for easier skills-matching. We can further enhance current programs like the Government Internship Program and JobStart Philippines to help workers make informed career decisions and acquire skills necessary in today’s competitive environment,” Pernia added.