PHL unemployment rate hits 10-year low at 4.7%

MANILA, -- Philippine unemployment rate dropped to a 10-year low at 4.7 percent in October 2016, reflecting the country's economic growth generates job opportunities.

The Philippine Statistics Authority's Labor Force Survey (LFS) shows that employment rate rises to 95.3 percent to reach 41.7 million Filipinos employed. This is the highest among the results in all of the previous October rounds of the LFS since 2006.

"This means that the growth of our economy is becoming more inclusive as it engages more and more Filipinos to participate in the labor market," said Socioeconomic Planning Secretary Ernesto M. Pernia.

The services sector remained the top employment contributor with a share of 54.9 percent, or 22.9 million of the total employed.

The industry sector, meanwhile, accounted for 17.2 percent, or 7.2 million, of the total employed in October 2016, driven largely by strong growth in manufacturing and construction.

"With the decrease of unemployment in October 2016, our implied full-year unemployment rate will be 5.5 percent, exceeding the government target for 2016 of 6.5 to 6.7 percent," he added.

The unemployment rate among the youth continued to decline in October 2016 at 11.6 percent, also a record low for all October rounds of the LFS since 2006.

The share of inactive youth - those who are neither studying nor employed - has consistently been declining in the past four years and has dropped to 20.5 percent in October 2016.

Underemployment increased to 18.0 percent in October 2016, making the full-year 2016 underemployment rate at 18.4 percent. Underemployment was prevalent among those working in private households and those employed in family business.

Meanwhile, the number of stable wage and salary employment grew to 25.3 million, or 60.8 percent, of total employed persons in October 2016. This is the highest for all October rounds since 2006.

"The increase in stable wage and salary employment reflects our economy's strength and the result of the government's clamp down on unlawful contractualization," Pernia further said.

Source: Philippines News Agency

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