“If the labor market is as vibrant as government claims, then why are Filipino families doing worse?”, asked research group IBON. The seemingly improved employment situation is not translating into the improving welfare of Filipino households, said the group. Instead of being overly fixated on surface job numbers, the Marcos administration should open its eyes to the reality that millions of Filipino families are barely earning enough from whatever work they can find.

Reported year-on-year August 2024 labor force data indicates that employment increased by 1.1 million to 49.2 million from 48.1 million in August 2023. Unemployment figures also appear to have improved, with the number of unemployed declining by 149,000 to 2 million from 2.2 million in the same period. The number of underemployed also decreased by 146,000 to 5.5 million. 

IBON said however that the large increase in employed persons and drop in unemployed doesn’t mean Filipinos are making enough income from their jobs to support their households. The number of self-rated poor families grew to 16 million or 58% of Filipino families in June 2024 from 12.9 million or 46% in March 2024, according to the latest Social Weather Stations (SWS) poverty survey.  

An indirect indicator of insufficient incomes is the increasing number of households without savings, which grew by 1.2 million from last year to 19.2 million, or over 7-out-of-10 households, as of third quarter of 2024. IBON estimated this based on data from the Bangko Sentral ng Pilipinas (BSP) Consumer Expectations Survey (CES).  

The worsening welfare of Filipino families is not surprising amid the growing informality of employment.  IBON estimates that there are 20.8 million or 42% of total employed persons in outright informal work as of August 2024. This includes the self-employed (13.9 million), domestic workers (2.1 million) and those working in their own family-operated farm or business (4.7 million, of which 3.4 million are unpaid family workers). If irregular workers in private establishments are counted, this means at least some 15 million more informal workers with low and erratic pay.

Many Filipinos are likely working more hours because they are not making enough to support themselves or their families. According to the August labor force survey, 65% of full-time workers said they worked more than 48 hours per week because they wanted more earnings. 

IBON said that if the government is sincere about improving the welfare of Filipino families, it should not stop at official labor force numbers and look beyond to see the actual situation of millions of poor and vulnerable Filipinos. In doing so, the government would realize how ineffective its job generating measures are and come up with actual solutions such as strengthening domestic industries and agriculture to boost the economy and create sustainable and decent jobs. Substantial support and protection are needed for small businesses and producers. In the short-term, higher wages and social protection like emergency cash support will be beneficial, said the group. ###