Unemployment worsens to 7.3% in July

The unemployment rate rose in July from a year ago despite a robust economic growth traced to rising investments.

The National Economic and Development Authority explained that the increase in the jobless rate was due to an unusual jump in the entrants to the labor force. It noted that the number of jobs created was substantial, but the increase in the labor force was even more significant.

The unemployment rate stood at 7.3 percent in July, up from 7 percent in the same month last year, the National Statistics Office reported yesterday. The latest figure, nonetheless, was better than the 7.5 percent registered in April this year.

There were 41.18 million people comprising the labor force in July, of which around 3 million were unemployed.

The Neda noted that the labor force increased by 786,000 from 40.39 million in July last year while 620,000 additional jobs were created during the period.

Economic Planning Secretary Arsenio Balisacan, who is also director general of the Neda, said the increase in the labor force could be traced partly to optimism over the economy’s favorable performance. With the economy’s faster-than-target growth, he said, some people who were keen about working were encouraged to look for work.

The labor force is composed of employed and unemployed working age individuals. The “unemployed” is defined as jobless people who are looking for work and excludes those who are not seeking job opportunities.

The NSO also reported that the underemployment rate stood at 19.2 percent in July, better than the 22.8 percent recorded in the same month last year. “Underemployed” is officially defined as people who desire additional work hours.

Balisacan acknowledged that the labor situation in the country, as reflected by the unemployment and underemployment rates, indicated that efforts at creating more jobs had to be sustained.

Labor Secretary Rosalinda Baldoz admitted that while the challenge of overcoming the unemployed Filipinos remained formidable, “we are optimistic about the prospects particularly about high-quality jobs under a regime of sustained economic growth despite a weak global economy.”