MANILA – The Philippine labor market is a complex landscape, with recent data showing signs of improvement while raising concerns about the quality of jobs created. The National Economic and Development Authority (NEDA) highlights the progress made in employment, while the IBON Foundation urges caution, pointing to underlying challenges faced by workers.
According to NEDA, the Philippine labor market remains vibrant, aligning with the targets set in the Philippine Development Plan (PDP) 2023-2028. The Philippine Statistics Authority’s latest labor force survey revealed a decrease in the country’s unemployment rate to 4.7% in July 2024, down from 4.9% a year earlier. This reduction translates to 3.1 million more Filipinos gaining employment, pushing the total number of employed individuals to 47.7 million as of July 2024.
NEDA Secretary Arsenio M. Balisacan expressed optimism about these figures, noting that the government’s focus on attracting investments in high-quality job sectors is paying off. He emphasized that efforts to improve physical and digital infrastructure, such as the passage of the Konektadong Pinoy Bill, are critical in driving employment growth. Additionally, NEDA is working on the Trabaho Para sa Bayan Master Plan, aimed at further enhancing job opportunities and reskilling Filipino workers.
“The Marcos administration is tirelessly working to attract high-quality investments, create jobs, and improve the business climate,” Balisacan said. “These initiatives give us confidence that we are on track to meet our employment targets for 2024.”
However, while NEDA celebrates these developments, the IBON Foundation presents a more cautious perspective. IBON acknowledges the overall increase in employment but stresses that much of the growth has been in part-time, irregular, and low-paying jobs. According to the foundation, the rise in part-time workers—up by 2.4 million to 14.7 million—underscores the prevalence of poor-quality employment. In contrast, full-time work grew by only 623,000 during the same period.
A major concern highlighted by IBON is the increase in youth unemployment. The foundation reports that the number of unemployed youth, particularly those aged 15 to 24, rose by 172,000 to 1.02 million as of July 2024. This issue is exacerbated by the fact that many of these young people are neither in education nor training, leaving them at risk of long-term economic hardship.
IBON Foundation also raised alarms about the growth of informal employment. Self-employed workers increased by 2.4 million, while unpaid family workers grew by 816,000. The foundation estimates that nearly 20 million Filipinos, or 41% of the total employed population, are engaged in informal work, which often lacks job security, benefits, and decent wages.
“While the government touts job creation, it is important to look deeper, most of the new jobs created are likely irregular, temporary, and low-paying, especially in sectors like agriculture, construction, and retail—industries that typically pay less than the national average daily basic pay,” IBON noted.
Sectors such as wholesale and retail trade, agriculture, and accommodation and food services, which saw the highest job increases, remain among the worst-paying industries. According to IBON, wages in these sectors fall below the estimated family living wage of ₱1,206 per day, making it difficult for many workers to escape poverty.
As the government continues to push for foreign investment and infrastructure development to fuel job creation, the debate over the quality of these jobs remains. NEDA’s outlook focuses on the long-term benefits of a growing labor force, while IBON underscores the need for sustainable, decent employment that addresses the challenges faced by marginalized workers, particularly the youth and those in informal sectors.
This divergence in perspective highlights the complexity of the Philippine labor market. While progress is being made in reducing unemployment and increasing labor force participation, questions about job quality and inclusivity persist, indicating that more comprehensive measures may be needed to achieve equitable growth.