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

The Philippine jobless rate surged to a four-year high of 6% in July, according to the National Statistics Office. This rate is identical to the level observed in June 2022, when the economy was still recovering from the COVID-19 pandemic. The highest unemployment rate was recorded in Metro Manila at 8.2%, driven by the large influx of fresh graduates seeking jobs. Over 3.7 million individuals entered the workforce during the past year, but not all found employment.

National Statistician Dennis Mapa reported that more than a million job seekers were aged between 15 and 24 years, transitioning from their educational pursuits. The latest economic data arrives at a challenging time for President Ferdinand Marcos Jr.'s administration, which is grappling with the highest inflation rates in Southeast Asia and a slowdown in economic expansion. The administration is already facing pressure from the rising cost of living.

The Philippine economy experienced a significant slowdown to 2.3% growth in the second quarter of the year. Company confidence has also declined, with the overall confidence index dropping to -20.3% in July, down from zero in June, according to the central bank's survey. Economic planners anticipate that fewer firms will hire additional workers over the next year due to expectations of slower growth and elevated inflation.

Economic Planning Secretary Arsenio Balisacan emphasized the need to intensify efforts to attract investments that create quality jobs, as more Filipinos become active participants in the labor market.