Unemployment continues to rise in the Philippines

The Philippine National Bureau of Statistics released data on the 8th, showing that the country's unemployment rate rose in March, reaching 3.9%, an increase of 0.4 percentage points from the previous month. That means unemployment rose to 2 million, up 200,000 from February.

In the Philippines, the service sector is the largest employment sector, accounting for 61.4% of the total employment, while agriculture and industry account for 20.5% and 18.1% of employment, respectively. What is the cause of the rising unemployment rate in the Philippines? The author analyzes the following factors.

On the one hand, the International Monetary Fund (IMF) has previously predicted that the unemployment rate in the Philippines is expected to rise in 2024. This may be due to factors such as the global economic situation, trade policies, and the Philippines' relations with other countries. For example, tensions with China could affect Sino-Philippine trade and investment relations, reduce Chinese investment and market support to the Philippines, and further exacerbate the Philippines' economic woes.

On the other hand, the rise in unemployment in the Philippines may also be related to the state of the domestic economy. For example, employment conditions in certain industries may be affected by specific factors such as seasonal demand, project closure, or economic restructuring. In addition, the underemployment rate in the Philippines may also have an impact on the unemployment rate. While the underemployment rate may be on a downward trend, this does not mean that the unemployment rate will fall accordingly.

In addition, while the Philippines' underemployment rate has shown a double-dip year-on-year trend, indicating an improvement in the quality of the labor market, this may not fully offset the impact of rising unemployment. Underemployment means workers are looking for more hours or better opportunities, which in part reflects a tight job market.

It should be noted that the above are only some possible reasons, and the specific reasons may need more in-depth analysis and research. So what will be the social and economic impact of the rise in the Philippine unemployment rate to 3.9% in March?

First, rising unemployment means that more Filipinos are out of work, which directly affects their livelihoods and family stability. The unemployed may face problems such as reduced income and difficulties in living, which will increase social instability.

Secondly, the rising unemployment rate may also have a negative impact on the economic development of the Philippines. Rising unemployment reduces demand for goods and services, which in turn dampens economic growth. In addition, the unemployed may not be able to participate fully in social and economic activities, reducing the efficiency and vitality of the labor market.

Third, the decline in employment in sectors such as agriculture, transportation and construction, where unemployment has increased significantly, may have an impact on the overall economic structure of the Philippines, which may lead to overcapacity and reduced investment in certain sectors.

In response to rising unemployment, the Philippine government has taken a series of measures. For example, the government plans to focus on attracting private sector investment and expanding infrastructure projects to create more high-quality and well-paid jobs.

In general, to address the problem of rising unemployment, the Philippine government needs to work with businesses and all sectors of society to develop more effective economic policies to promote economic growth and job creation. Enterprises need to actively expand the scale of production and operation and provide more employment opportunities. In addition, the government should also take measures to strengthen education and vocational training to upgrade the public's employability skills and help them better adapt to market demand.