1 month ago
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President Marcos' chief economic manager is optimistic that joblessness this year will be even lower than the administration's 2025 goal, following last year's two-decade low unemployment rate.
Department of Finance (DOF) Secretary Ralph G. Recto confirmed to Manila Bulletin on Friday, Feb. 7, that this year's unemployment rate target could be upgraded to between 3.5 and 4.5 percent, from the current 4.8- to 5.1-percent projection under the Philippine Development Plan (PDP) 2023-2028.
This comes after the average 2024 jobless rate fell to its lowest level since at least 2005, when the government adopted the labor force survey (LFS) to monitor the jobs sector.
Data from the Philippine Statistics Authority (PSA) revealed that from 4.4 percent in 2023, the share of unemployed Filipinos declined to 3.8 percent in 2024. This figure is equivalent to an additional around 250,000 Filipinos landing full-time employment last year.
The 2024 unemployment rate was not only better than the PDP's goal of 4.4 to 4.7 percent, but it also already exceeded the targeted four to five percent by 2028 under the Marcos Jr. administration's socioeconomic development blueprint.
Given this record-low jobless rate, Recto stated that the Development Budget Coordination Committee (DBCC) will "surely" revise its 2025 target upwards, adding that the committee will further discuss this during its meeting in March.
"You also want a high labor [force] participation rate," Recto said, noting that 63 to 65 percent is "good."
While the country last year recorded its highest employment rate, reflecting about 50 million Filipinos with jobs, the labor force participation rate—or the portion of the total working-age population that is currently employed or unemployed but looking for work—stood at 64.43 percent, lower than 2023's 64.91 percent.
In 2024, 96.2 percent of the working-age population had jobs, up from 95.6 percent in 2023 and also the highest rate in 20 years. During the COVID-19 pandemic, the employment rate dropped to a record low of 89.7 percent in 2020 due to strict lockdowns that halted economic activities.
Likewise, the underemployment rate—the percentage of Filipinos seeking additional jobs or longer working hours—dropped to 11.9 percent last year from 12.3 percent in 2023. This decline means about 100,000 workers have moved to better employment conditions, including jobs with more stable hours and improved salaries.
Meanwhile, National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan expressed firm commitment to the government's medium-term unemployment target.
"We're not changing the employment targets for 2025 and beyond," Balisacan, the country's chief socioeconomic planner overseeing the PDP 2025-2028, told Manila Bulletin. "However, we will focus on improving the ecosystem for more high-quality employment opportunities."
