Increased Unemployment Rates and Job Quality Worsened Last May 2022

According to the Philippine Statistics Authority (PSA), the unemployment rate in the Philippines increased in May to 6% from 5.7% last April 2022. This means there were 2.93 million that were jobless in May from a recorded 2.76 million unemployed in April. This comes after four months straight of decline.

While this could be an indicator of a growing but still recovering economy, the number of people without jobs increased as more joined the labor force. Data from the PSA shows that an estimated 49.01 million aged 15 years old and up were actively looking for work last May.

On this topic, NEDA Secretary Arsenio Balisacan mentions the government would need to make quality employment a priority. “Now, the immediate challenge is the full reopening of the economy. Over the medium term, the government will focus on creating more jobs, quality jobs, and green jobs through productivity-enhancing investments,” he says.

An economist at Ateneo De Manila University, Mr. Leonardo Lanzona says that fewer job opportunities can be linked to the post-election period uncertainty.

“Part of this outcome can be a consequence of the election outcome itself. Uncertainty surrounding the elected President is so high that investors have left the markets. But more importantly, the high prices and poor economic conditions have caused firms to reduce operations and employment,” says Mr. Lanzona.

“This last factor can be attributed to the failure of the previous administration to create an effective stimulus program that can form the basis for the recovery. The pandemic has exposed weaknesses in the structure of the economy, and there was no response from the Duterte government to these disruptions,” Mr. Lanzona adds.

Source: Philstar