Philippine jobless rate surges to four-year high as growth slows

The Philippine jobless rate reached a four-year high of 6% in July, as economic growth slowed due to a corruption scandal and the global oil shock, according to the National Statistics Office. This rate is identical to the one recorded in June 2022, when the economy was still recovering from the COVID-19 pandemic. Metro Manila, the capital region, reported the highest jobless rate of 8.2%, attributable to a large influx of fresh graduates into the labor market.

Over 3.7 million people joined the workforce over the past year, with more than a million of them being students aged 15-24 who transitioned from education.

President Ferdinand Marcos Jr.'s administration is currently facing pressure from the rising cost of living, as the Philippines grapples with the highest inflation in Southeast Asia. Many companies are hesitant to hire more workers due to the slower economic expansion. The Philippine economic growth slowed to 2.3% in the second quarter of the year, and overall confidence among businesses plunged to -20.3% in July from zero in June, as reported by the central bank survey.

The central bank predicts that fewer firms will plan to hire additional workers over the next 12 months due to forecasted softer growth and high inflation. Economic Planning Secretary Arsenio Balisacan emphasized the need to intensify efforts to attract investments, particularly those that create quality jobs, as more Filipinos are actively participating in the labor market.