Employment improves, while underemployment intensifies

More Filipinos were employed in January, but there were also more individuals who considered themselves as underemployed, the Philippine Statistics Authority (PSA) reported Wednesday.

The employment rate improved to 94.7 percent in January from 93.4 percent a year earlier, data released by the PSA showed.

Employed persons are classified as either full-time workers or those working at least 40 hours a week, while part-time workers are those who work less than 40 hours.

Rene Ofreneo, director of the Center for Labor Justice of the University of the Philippines School of Labor and Industrial Relations, said there might have been a spillover effect from the employment conditions during the Christmas season.

“The economy is growing so natural increase ‘yan. Tsaka, on top of that, you have the effect of November, December, and January—Christmas and New Year season,” Ofreneo told GMA News Online.

There may have been additional employment opportunities on account of the government’s infrastructure spending program.

“Karamihan kasi ng mga government projects and processing nadedelay, usually towards the end of the year nagte-take off,” he said.

Out of the total employed individuals in January, 64.8 percent were full-time workers while 34.2 percent were part-time workers.

The bulk or 55.9 percent of the total employment were in the services sector, mainly in wholesale and retail trade and repair of motor vehicles and motorcycles.

The agriculture sector accounted for 26.0 percent, and the industry sector for 18.1 percent.

The unemployment rate of 5.3 percent last January was also an improvement from 6.6 percent in January 2017.

The PSA data, however, showed an increase in underemployment which expanded to 18.0 percent from 16.3 percent in the same comparable period.

“By definition, employed persons who express the desire to have additional hours of work in their present job, or to have additional job, or to have a new job with longer working hours are considered underemployed,” the statistics office noted.

Employees are looking for better employment opportunities and higher pay, Ofroneo said.

“Marami pa rin talaga naman ang feeling inadequate in terms of wages, in terms of support, in terms of expectations,” he said. —VDS, GMA News