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Unemployment drops to 6.6% in January – PSA
By DANESSA O. RIVERA, GMA News
(Updated 6:27 p.m.) The number of jobless Filipinos fell in January from a year earlier while those working additional hours or holding more than one job declined as well, the Philippine Statistics Authority (PSA) reported on Thursday.
The latest labor force survey (LFS) showed the jobless rate at 6.6 percent in January 2015, compared with 7.5 percent a year earlier but higher compared with 6 percent in October 2014.
The latest unemployment rate translates to 2.6473 million jobless Filipinos who belong to the Philippine labor force of 40.11 million.
The latest LFS shows that the Philippine economy is really expanding, Ateneo de Manila University Economics professor Alvin Ang told GMA News Online.
"The whole trend in 2014 is that unemployment and underemployment has been going down," he said.
"The seasonal aspect also may have had an impact in the survey, since there's a lot of demand, whether part time or full-time during the last quarter of the year," he added.
The Philippine economy grew by 6.1 percent in 2014, after the agriculture sector recovered and government spending accelerated in the last quarter of the year.
Underemployment
PSA estimates showed there were 62.87 million Filipinos 15 years and older during the survey period, of which 40.11 million were counted as part of the labor force.
Meanwhile, the total underemployment rate was estimated at 17.5 percent in January 2015, an improvement from the 19.5 percent a year earlier, the latest LFS show.
The underemployed or those who work less than 40 hours a week were estimated at 60.7 percent, while those who worked for over 40 hours made up 37.4 percent of the underemployed workers.
Ang noted that this reflects that job quality is also improving.
"Underemployment is a measure of quality of jobs. With the decline, it's a signal of improved quality of employment," he said.
With the decline in the unemployment rate, the employment rate rose to an estimated 93.4 percent from 92.5 percent, according to the PSA.
Services
Workers in the services sector comprised the largest proportion of the total employed at 54.6 percent. The agriculture and industry sectors cornered 29.5 percent and 15.9 percent, respectively, of the total workforce.
The latest labor force survey (LFS) showed the jobless rate at 6.6 percent in January 2015, compared with 7.5 percent a year earlier but higher compared with 6 percent in October 2014.
The latest unemployment rate translates to 2.6473 million jobless Filipinos who belong to the Philippine labor force of 40.11 million.
In a separate statement, Economic Planning Secretary Arsenio M. Balisacan said the labor market got a boost from stronger growth in all sectors – mainly driven by services.
“With employment growing faster at 2.8 percent compared to the labor force growth of 1.8 percent, and partly due to the stronger growth of services employment, the number of unemployed went down by 334,000 to 2.6 million during the period,” the Cabinet official said.
The latest LFS shows that the Philippine economy is really expanding, Ateneo de Manila University Economics professor Alvin Ang told GMA News Online.
"The whole trend in 2014 is that unemployment and underemployment has been going down," he said.
"The seasonal aspect also may have had an impact in the survey, since there's a lot of demand, whether part time or full-time during the last quarter of the year," he added.
The Philippine economy grew by 6.1 percent in 2014, after the agriculture sector recovered and government spending accelerated in the last quarter of the year.
Underemployment
PSA estimates showed there were 62.87 million Filipinos 15 years and older during the survey period, of which 40.11 million were counted as part of the labor force.
Meanwhile, the total underemployment rate was estimated at 17.5 percent in January 2015, an improvement from the 19.5 percent a year earlier, the latest LFS show.
The underemployed or those who work less than 40 hours a week were estimated at 60.7 percent, while those who worked for over 40 hours made up 37.4 percent of the underemployed workers.
Balisacan, who is also National Economic and Development Authority (NEDA) director-general, said the latest underemployed numbers "possibly means greater availability of more remunerative jobs and more profitable ventures...
“From employment gains to reductions in unemployment and underemployment, the labor market is becoming robust, and we hope that this will continue and further benefit the poor, especially as the economy grows faster at a higher trajectory,” he added.
Ang noted that this reflects that job quality is also improving.
"Underemployment is a measure of quality of jobs. With the decline, it's a signal of improved quality of employment," he said.
With the decline in the unemployment rate, the employment rate rose to an estimated 93.4 percent from 92.5 percent, according to the PSA.
Services
Workers in the services sector comprised the largest proportion of the total employed at 54.6 percent. The agriculture and industry sectors cornered 29.5 percent and 15.9 percent, respectively, of the total workforce.
With the latest LFS results, Balisacan stressed the importance of ensuring the gains in employment and income are not eroded by food prices.
“The recent report on poverty highlighted the impacts of high food prices, mostly to low-income families. Our significant strides in poverty reduction through better quality jobs and higher incomes must move forward along with cheaper food prices," he said.
Among food prices, the Cabinet secretary said the price of rice is the utmost concern as it accounts for up to 20 percent of the poor people's budget .
“Relatedly, the government must continue its efforts to create a more supportive business environment, allowing the private sector to create more and better jobs,” Balisacan added. — VS, GMA News
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