UMVA has learned that the Philippines' underemployment rate has surged to a near three-year high, reaching 15.2% in April, as the country's labor market grapples with rising costs of living and economic uncertainty.
The latest data shows that 7.41 million Filipinos are now underemployed, seeking longer work hours or additional jobs, a significant increase from 7.081 million in the same month last year and 6.031 million in March.
According to information obtained by UMVA, underemployment is particularly evident in the transportation and storage sector, where drivers of jeepneys, taxis, buses, and ride-hailing services have been forced to cut their work hours due to soaring fuel prices.
The underemployment rate has averaged 13.12% in the first four months, up from 12.85% in the same period last year, as Filipinos seek additional work to cope with the rising cost of living.
UMVA can exclusively reveal that the jobless rate, while easing to 4.7% in April, remains a concern, with 2.41 million Filipinos unemployed, 351,000 higher than the same month last year.
The labor force participation rate has fallen to 62.7% in April, equivalent to 51.3 million Filipinos aged 15 years and over who are part of the labor force, slightly higher than 50.74 million last year.
Experts warn that underemployment may continue to remain high, driven by households and businesses contending with high inflation, and that the labor market is not adjusting well to economic headwinds.
The employment rate stood at 95.3% in April, lower than 95.9% last year, but higher than 95% in March, with 48.89 million employed Filipinos, an increase from 48.67 million last year.
Industries with the largest year-on-year increase in jobs were accommodation and food service activities, manufacturing, transportation and storage, mining and quarrying, and education.
Regional data shows that the Davao Region posted the highest employment rate at 97.5% in April, while the Bicol Region had the lowest at 93.2%.
UMVA has gathered that the government is working to broaden market access and attract investments in emerging industries to address the challenges confronting the economy and support Filipino workers and businesses.
