PH UNEMPLOYMENT RATE EASES IN
JULY FROM APRIL 2020
September 3, 2020
The labor market is improving, but the government needs to continue its
efforts in containing the spread of the COVID-19 pandemic and supporting
affected workers and firms to revive the economy, the National Economic
and Development Authority (NEDA) says.
As reported by the Philippine Statistics Authority (PSA), the July round of
the Labor Force Survey (LFS) recorded a 7.5-million increase in employment
compared to April, with all subsectors experiencing employment gains
except for arts, entertainment, and recreation. All 17 regions showed
employment improvements from the previous quarter.
Notably, employment in agriculture and forestry increased by 2.1 million
from April, with higher agricultural output. Within the industry sector,
employment growth was seen in construction (with 1.2 million additional
employment) as the Build Build Build program and other construction
activities resumed, as well as in manufacturing (671,000 additional
employment).
The July survey figures show a direct link between the level of quarantine
restriction and labor market outcomes. In the first half of May 2020, more
than three-fourths of the economy was placed under ECQ. As a result, GDP
and unemployment worsened to record levels. In contrast, in the first half of
July 2020, only 2.1 percent of the economy was placed under ECQ. The
result is a significant reduction in the unemployment rate and the return of
some 7.5 million jobs.
Likewise, the underemployment rate improved to 17.3 percent in July from
18.9 percent in April, as the increase in underemployed workers was
outpaced by the overall increase in employment.
Despite the easing of quarantine restrictions throughout the country, the
NEDA chief emphasized the importance of following proper social
distancing protocols, abiding by local ordinances, and wearing of personal
protective equipment such as face masks, as these remain important to
lessen the risk of spreading the virus.
He said that in the coming months, better GDP and job numbers will hinge
on how open the economy is. This entails a better strategy to “Prevent,
Detect, Isolate, Treat, and Recover (PDITR).” It also requires a safe and
sufficient number of public transportation that, if needed, is supported by
service contract subsidies.
“Without the public transport system back sufficiently, many people cannot
go back to work. To illustrate, under GCQ, the share of the NCR economy
that is allowed to open is 58.2 percent, but without sufficient public
transport, it falls to 35.5 percent,” according to the NEDA Chief.
Also, the recent passage of Bayanihan II will mobilize much needed
resources to provide relief and assistance to households and business
workers, communities and firms, by continuing to provide temporary
employment programs, cash subsidies, extended grace periods, and
financing for micro, small and medium enterprises (MSMEs).
These programs can be complemented by the swift passage of the GUIDE,
FIST, and CREATE bills. For next year, the 2021 budget will take the leading
role in our recovery and resiliency program.
The Build, Build, Build infrastructure program is also targeted to accelerate
countryside development, regional connectivity, and job generation. From
4.2 percent of GDP in 2020, infrastructure spending will grow to 5.4 percent
of GDP in 2021, creating in the process some 1.1 million full time equivalent
jobs, and with a multiplier of around 2, will help the country achieve the 6.5
to 7.5 percent GDP growth target next year.
“Through our collective efforts, I believe that we will be able to recover as
one, come out stronger, more resilient, and become better as a country and
as individuals,” he said.
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