MANILA, Philippines – Unemployment and underemployment in the Philippines dropped to their lowest since 2005 in December 2024, the Philippine Statistics Authority reported on Thursday, February 6.
The Philippines’ unemployment rate slipped to 3.1% in December, representing 1.63 million Filipinos. Meanwhile, underemployment dropped to 10.9% from November’s 11.9%.
The latest figures place the country’s average unemployment rate at the 19-year low of 3.8% and underemployment rate at 11.9%.
Underemployment refers to employed individuals who want more work hours in their current job, a second job to augment their income, or a new job with longer work hours.
According to National Statistician Dennis Mapa, the following industries added the most jobs in 2024:
- Transportation and storage (555,000)
- Construction (263,000)
- Administrative and support services (223,000)
- Public administration and defense (211,000)
- Social work activities (197,000)
Mapa attributed the rise in transportation jobs to land transport, as firms added more buses and shuttles to their fleets.
Meanwhile, the agriculture and fisheries sector saw the highest job loss at 1.56 million.
Mapa said the sector lost the most jobs in rice paddy farms, planting and transplanting, as well as hog farming. He noted that the farming industry is still grappling with the effects of the six consecutive storms from October to November, while the hog industry continues to battle African swine fever (ASF).
“Ibig sabihin may reduction tayo sa palay. Doon naman sa hogs, of course, we have ASF,” Mapa explained.
(This means we slightly reduced our rice production. With hogs, of course, we have ASF.)
Manufacturing jobs lost
The manufacturing sector also lost 387,000 jobs in December, the industry with the second highest drop in employment for that month.
Despite the loss of jobs, S&P Global’s business intelligence unit said the Philippines’ manufacturing sector ended 2024 with output and new order growth at a 32-month high.
“While production efficiency allowed manufacturers to stay on top of tasks at hand, it also led to a slight drop in employment, thereby ending a three-month streak of job creation. However, this could be a temporary blip, especially if demand remains resilient as anticipated throughout 2025,” S&P Global’s economist Maryam Baluch said.
Mapa said subsectors within the manufacturing sector saw mixed movements. In particular, the country lost the most manufacturing jobs in the production of bamboo and rattan products, plywood and wooden sheets, as well as leather products.
“These are not the usual manufacturing jobs we see in terms of electronics, but in other specific areas. So [like] rattan, it’s very specific, [and] bamboo basket making,” he explained in Filipino.
The National Economic and Development Authority (NEDA) described the country’s latest labor figures as “stable” and an indicator of improving job quality.
NEDA Secretary Arsenio Balisacan vowed to promote inclusive work arrangements to reduce the barriers to labor force participation.
He also pledged to ramp up reintegration initiatives for returning overseas Filipino workers or OFWs in light of United States President Donald Trump’s immigration policies. These include an emergency repatriation fund and setting up more Agarang Kalinga at Saklolo para sa mga OFW na Nangangailangan or AKSYON centers in key regions.
“Our goal is to sustain job creation, improve the quality of employment, and provide every Filipino with opportunities for long-term economic security,” Balisacan said in a statement. – Rappler.com