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Advocates Philippines
July 2023 Unemployment Rate In The Country Drops To 4.8%
Photo credit: PESO San Pedro
The country's unemployment rate for July 2023 registered a decrease, dropping to 4.8 percent from 5.2 percent in the same month the previous year. The April 2023 unemployment rate was also lower, standing at 4.5 percent.
Analyzing the numbers further, the estimated number of individuals in July 2023 was 2.27 million, reflecting a decline of 329 thousand from the 2.60 million reported in July 2022.
The employment rate in July 2023 reached 95.2 percent, surpassing the rate reported in July 2022 at 94.8 percent. However, it fell short of the estimate in April 2023, which stood at 95.5 percent.
The Labor Force Participation Rate (LFPR) in July 2023 declined to 60.1 percent, down from 65.2 percent in July 2022 and 65.1 percent in April 2023. This translated to 46.90 million individuals either employed or actively seeking employment.
Furthermore, the number of individuals, those desiring additional work hours or new job opportunities with longer hours, reached 7.10 million in July 2023, resulting in an underemployment rate of 15.9 percent. This marked an increase from the rates reported in July 2022 (13.8%) and April 2023 (12.9%).
On average, individuals worked 42.3 hours per week, an increase from the average hours worked in July 2022 at 40.5 hours and in April 2023 at 36.9 hours.
By broad industry group, the services sector continued to dominate employment, accounting for 59.4 percent of the total employed persons in July 2023. The agriculture and industry sectors accounted for 21.5 percent and 19.0 percent, respectively.
Examining changes in the number of employed persons in July 2023, the top five sub-sectors with the highest annual increments were:
• Transportation and storage (337 thousand)
• Administrative and support service activities (243 thousand)
• Professional, scientific and technical activities (162 thousand)
• Information and communication (117 thousand)
• Manufacturing (75 thousand)
• Conversely, the top five subsectors that experienced the most significant declines in the number of employed persons from July 2022 to July 2023 were:
• Wholesale and retail trade; repair of motor vehicles and motorcycles (-1.97 million)
• Agriculture and Forestry (-1.58 million)
• Public administration and defense; compulsory social security (-271 thousand)
• Arts, entertainment and recreation (-44 thousand)
• Real estate activities (-32 thousand)
• Wage and salary workers remained the largest share of employed persons, accounting for 67.2 percent of the total employed persons in July 2023. This was followed by self-employed individuals without any paid employees at 25.2 percent and unpaid family workers at 4.5 percent. Employers in their own family-operated farms or businesses had the lowest share at 3.1 percent.
• Among wage and salary workers, those employed in private establishments constituted 53.4 percent of the total employed, followed by those employed in government or government-controlled corporations with a 9.1 percent share.
• Region II or Cagayan Valley posted the highest employment rate of 96.7 percent in July 2023, followed closely by Region XI or Davao Region (96.5%) and Region XII or SOCCSKSARGEN (96.4%).
• However, at the regional level, seven out of 17 regions reported an unemployment rate higher than the national rate of 4.8 percent in July 2023. These regions included Region V or Bicol Region (6.2%), Region IV-A or CALABARZON (5.9%), Region VII or Central Visayas (5.5%), Region X or Northern Mindanao (5.4%), Region VIII or Eastern Visayas (5.1%), Region XIII or Caraga (5.1%), and National Capital Region (4.9%).
• The Youth Labor Force Participation Rate (LFPR) in July 2023 was 29.6 percent, which represented a decline from the rates reported in July 2022 (37.1%) and April 2023 (34.7%). The employment rate among youth also decreased to 86.0 percent from 88.1 percent in the same month the previous year and 90.0 percent in April 2023.
• Notably, the proportion of youth not in education, employment, or training (NEET) in July 2023 increased to 14.7 percent from 12.9 percent in July of the previous year and 10.3 percent in April 2023.
Analyzing the numbers further, the estimated number of individuals in July 2023 was 2.27 million, reflecting a decline of 329 thousand from the 2.60 million reported in July 2022.
The employment rate in July 2023 reached 95.2 percent, surpassing the rate reported in July 2022 at 94.8 percent. However, it fell short of the estimate in April 2023, which stood at 95.5 percent.
The Labor Force Participation Rate (LFPR) in July 2023 declined to 60.1 percent, down from 65.2 percent in July 2022 and 65.1 percent in April 2023. This translated to 46.90 million individuals either employed or actively seeking employment.
Furthermore, the number of individuals, those desiring additional work hours or new job opportunities with longer hours, reached 7.10 million in July 2023, resulting in an underemployment rate of 15.9 percent. This marked an increase from the rates reported in July 2022 (13.8%) and April 2023 (12.9%).
On average, individuals worked 42.3 hours per week, an increase from the average hours worked in July 2022 at 40.5 hours and in April 2023 at 36.9 hours.
By broad industry group, the services sector continued to dominate employment, accounting for 59.4 percent of the total employed persons in July 2023. The agriculture and industry sectors accounted for 21.5 percent and 19.0 percent, respectively.
Examining changes in the number of employed persons in July 2023, the top five sub-sectors with the highest annual increments were:
• Transportation and storage (337 thousand)
• Administrative and support service activities (243 thousand)
• Professional, scientific and technical activities (162 thousand)
• Information and communication (117 thousand)
• Manufacturing (75 thousand)
• Conversely, the top five subsectors that experienced the most significant declines in the number of employed persons from July 2022 to July 2023 were:
• Wholesale and retail trade; repair of motor vehicles and motorcycles (-1.97 million)
• Agriculture and Forestry (-1.58 million)
• Public administration and defense; compulsory social security (-271 thousand)
• Arts, entertainment and recreation (-44 thousand)
• Real estate activities (-32 thousand)
• Wage and salary workers remained the largest share of employed persons, accounting for 67.2 percent of the total employed persons in July 2023. This was followed by self-employed individuals without any paid employees at 25.2 percent and unpaid family workers at 4.5 percent. Employers in their own family-operated farms or businesses had the lowest share at 3.1 percent.
• Among wage and salary workers, those employed in private establishments constituted 53.4 percent of the total employed, followed by those employed in government or government-controlled corporations with a 9.1 percent share.
• Region II or Cagayan Valley posted the highest employment rate of 96.7 percent in July 2023, followed closely by Region XI or Davao Region (96.5%) and Region XII or SOCCSKSARGEN (96.4%).
• However, at the regional level, seven out of 17 regions reported an unemployment rate higher than the national rate of 4.8 percent in July 2023. These regions included Region V or Bicol Region (6.2%), Region IV-A or CALABARZON (5.9%), Region VII or Central Visayas (5.5%), Region X or Northern Mindanao (5.4%), Region VIII or Eastern Visayas (5.1%), Region XIII or Caraga (5.1%), and National Capital Region (4.9%).
• The Youth Labor Force Participation Rate (LFPR) in July 2023 was 29.6 percent, which represented a decline from the rates reported in July 2022 (37.1%) and April 2023 (34.7%). The employment rate among youth also decreased to 86.0 percent from 88.1 percent in the same month the previous year and 90.0 percent in April 2023.
• Notably, the proportion of youth not in education, employment, or training (NEET) in July 2023 increased to 14.7 percent from 12.9 percent in July of the previous year and 10.3 percent in April 2023.
Sep 8, 2023
