Unemployment rate eases to 10%, equivalent to 4.6M jobless Filipinos in July —PSA

The number of jobless Filipinos eased in July after soaring to a record-high in April as the economy gradually reopened after months of strict lockdowns to contain the spread of COVID-19.

In a virtual press conference on Thursday, National Statistician Claire Dennis Mapa reported that the unemployment rate was recorded at 10% in July. This is equivalent to 4.6 million adult individuals without jobs or livelihoods during the period.

"Ito ay mas mataas ng 2.2 milyon kaysa sa bilang noong July 2019 na nasa 5.4% o 2.4 milyon," Mapa said, citing the results of the Philippine Statistics Authority's (PSA) July 2020 Labor Force Survery.

The unemployment rate in July is an improvement compared to the record-high 17.7% in the April 2020 survey, equivalent to 7.3 million unemployed adult individuals.

The PSA chief attributed the reduction in unemployment rate to the eased community quarantine during the period, where several industries have already resumed operations.

“‘Yung reduction in unemployment rate 10% in July mula sa [17.7%] noong April ay... may mga regions tayo na nakita na nagbukas na ang mga economic centers kaya nagkaroon na ng pagbalik sa trabaho ng ating mga kababayan,” Mapa said.

The Philippine economy was in a standstill during the latter part of the first quarter due to the implementation of strict quarantine measures — enhanced community quarantine (ECQ) in Metro Manila and other high-risk areas from March 17 to May 15, followed by a modified enhanced community quarantine (MECQ) until May 31.

Lighter restrictions were then implemented under the general community quarantine (GCQ) starting June 1. Metro Manila and four other nearby provinces, however, were reverted to the stricter MECQ on August 4 that lasted until August 18.

Employment rate

Employment rate, meanwhile, picked up at 90% in July compared to the record low of 82.3% in April.

However, Mapa said, “Ang naitalang employment rate nitong nakaraang July ay bumaba sa 90% kung ikukumpara sa employment rate noong July 2019 na nasa 94.6%.”

But compared to April's record-low employment rate of 82.3%, July's 90% rate is an improvement. This is equivalent to about 41.3 million Filipinos employed in July, higher than 33.8 million in April.

The PSA chief also reported that of the employed persons, who reported with job but not at work, was estimated at 3.3% or 1.4 million, with COVID-19 pandemic or community quarantines as the paramount  reason given, similar to that of the second quarter.

Underemployment rate —the proportion of employed persons wanting additional work — is down to 17.3% in July compared to the estimated 18.9% in April. 

This, however, is still worse than the estimate in July 2019 at 13.6%.

In terms of count, about 7.1 million were underemployed persons as of July this year, “given the varying working arrangements and reduced working hours being implemented by companies or establishments,” according to Mapa.

In July 2019 and April 2020, about 5.8 million and 6.4 million Filipinos, respectively, were underemployed.

On the other hand, Mapa noted that while most parts of the country eased the restrictions for community quarantine, five regions still reported double-digit unemployment rates.

PSA data showed the highest unemployment rate estimate of 15.8% was recorded in the National Capital Region (NCR), equivalent to 929,000 jobless adult Filipinos.

It was followed by CALABARZON at 12.4%, Central Visayas at 11.7%, Ilocos Region at 11.1%, and Central Luzon at 10.9%.

Mapa said the higher-than-national average unemployment rate in the said regional economic centers was still due to the existence of community quarantine and many businesses have not yet fully reopened.

Arts, entertainment, and recreation was the most affected sector in July with a drop in employment rate of 72.9% year-on-year, and a drop of 41.4% compared to the second quarter of 2020, according to the PSA chief.

Employment rate in accommodation and food service activities followed, which dropped by 35.9% from last year, although there was an increase of 4.7% from April.

Labor force participation rate (LFPR) in July this year was registered at 61.9% out of 74.1 million population of 15 years old and above.

The LFPR in July 2020 was lower than the reported 62.1% in July 2019.

This, however, was an improvement from the 55.6% LPFR in April, the lowest participation rate in the history of the Philippine labor market.

The July 2020 Labor Force Survey was conducted from July 8 to 31.

“The provision of minimum health protocols like masks, face shield, and alcohol were provided to all PSA officials and statistical researchers who did the survey,” Mapa said. —RSJ, GMA News