Photo credit: BCDA

The latest numbers from the December 2024 Labor Force Survey are in, and while the unemployment rate held steady at 3.1%, the workforce saw some interesting shifts. Let’s break it down in a way that makes sense.

Stable Unemployment, Slight Fluctuations in Job Numbers

December’s 3.1% unemployment rate matched last year’s figure but was a tiny improvement from November’s 3.2%. This means about 1.63 million Filipinos were unemployed—a bit higher than December 2023’s 1.60 million but lower than November 2024’s 1.66 million.

On the flip side, the employment rate stayed strong at 96.9%, bringing the total number of employed Filipinos to 50.19 million—slightly lower than December 2023’s 50.52 million, but an improvement from November 2024’s 49.54 million.

More Filipinos in the Workforce, But Labor Force Participation Drops

The labor force participation rate (LFPR), or the percentage of Filipinos aged 15 and above who are either working or looking for work, dropped to 65.1%. That’s lower than December 2023’s 66.6%, but a slight increase from November’s 64.6%.

This means 51.81 million Filipinos were part of the labor force in December, a decline from December 2023’s 52.13 million but an increase from November’s 51.20 million.

Work Hours and Underemployment: What’s Changing?

Filipinos worked an average of 40.9 hours per week in December, slightly more than the 40.6 hours in December 2023, but a bit less than November’s 41.1 hours.

The underemployment rate—which measures those who have jobs but want more work or hours—dropped to 10.9% from 11.9% in December 2023, showing a positive trend. However, it was slightly higher than November’s 10.8%.

Which Sectors Gained and Lost Jobs?

The services sector continued to dominate, employing 60.5% of the workforce, followed by agriculture (21.3%) and industry (18.3%).

Biggest Job Gains (Year-on-Year):

• Transportation and storage (+555,000)

• Construction (+263,000)

• Administrative and support services (+223,000)

• Public administration & defense (+211,000)

• Health and social work (+197,000)

Biggest Job Losses (Year-on-Year):

• Agriculture and forestry (-1.56 million)

• Manufacturing (-387,000)

• Other service activities (-166,000)

• Retail trade & motor repair (-106,000)

Employment Trends by Job Type

Wage and salary workers made up 63.1% of employed Filipinos, with most working in private establishments (78.9%).

Self-employed workers without employees made up 28.5%.

Unpaid family workers accounted for 6.8%, while employers in family-run businesses had the smallest share at 1.6%.

What About the Youth?

Youth labor force participation dropped to 31.9% (from 34.5% in December 2023).

The youth employment rate also dipped to 90.9% (from 91.8% last year).

What This Means Moving Forward

While the unemployment rate remains low, the decline in labor force participation suggests fewer Filipinos are actively working or looking for jobs. This could be due to economic shifts, job satisfaction levels, or even migration trends.

Meanwhile, job losses in agriculture and manufacturing indicate challenges in these industries, while transportation, construction, and public service sectors are growing.

With 2025 ahead, the focus will likely be on job creation in emerging sectors, improving work conditions, and ensuring economic resilience. Let’s see how the job market plays out in the months to come!