The unemployment rate in the Philippines decreased to its lowest level in nearly two decades in November 2023, according to the Labor Force Survey (LFS). Despite a decline in labor force participation, the number of unemployed individuals dropped to 1.83 million, a decrease of 350,000 from the previous year. As a result, the unemployment rate fell to 3.6 percent, the lowest since the Philippine Statistics Authority revised the methodology for the LFS in 2005.

While the unemployment rate saw a significant decrease, the labor force participation rate also fell to 65.9 percent from 67.5 percent the previous year. This decline was mainly due to lower participation of young people and women, impacted by familial responsibilities, schooling, and age-related factors.

To address this declining labor force, NEDA Secretary Arsenio Balisacan emphasized the need to expand the digital economy, in particular the digitalization of micro, small and medium enterprises (MSMEs) and startups. “Digitalization enables alternative work arrangements, particularly for the youth, women, and those in the creative sector. This will help address the declining labor force, Balisacan said.

In addition, NEDA plans to carry out various regulatory reforms including the Apprenticeship Bill, Lifelong Learning Bill, and the Enterprise Productivity Act to support a more productive workforce.

The underemployment rate also saw a decrease to 11.7 percent from 14.4 percent the previous year. The number of underemployed individuals, those who desire more work hours or an additional job, reduced to 5.79 million from 7.16 million.