The decline in unemployment and underemployment should be a positive development, but it seems that millions of Filipinos are still not feeling the benefits of a “robust” labor market, said research group IBON. The Marcos Jr administration is overly focused on surface-level statistics, said the group, while failing to improve the conditions of workers who are still scraping by on low-wage, poor-quality jobs.
The latest official labor force data shows that the number of unemployed persons dropped by 171,000 to 1.7 million in November 2023 from 1.8 million in the same period last year. The number of underemployed persons also decreased by 432,000 to 5.4 million from 5.8 million. IBON said however that lower unemployment and underemployment do not automatically signify an improvement in job quality or workers’ well-being.
The group pointed out that labor force participation and job creation remained sluggish in November 2024, despite the approaching holiday season. IBON noted that the number of those in the labor force declined by 264,000, from 51.5 million in November 2023 to 51.2 million. The number of employed persons also decreased slightly by 94,000 from 49.6 million to 49.5 million. While statistically not that significant, it does suggest stagnation or that many Filipinos stopped actively seeking work due to the lack of decent job opportunities.
Employment is still plagued by widespread informality, IBON added. As of November 2024, 20.3 million or 41% of total employed persons are still in openly informal work. This includes the self-employed (13.8 million), domestic workers (2.3 million) and those in own family-operated farm or business (4.3 million, of which 3.2 million are unpaid family workers). The number of informal workers could even rise to as much as 35 million if irregular workers in informal private establishments are also counted.
The group also said that the 2.3-million drop in agricultural employment is a cause for concern. Those employed in agriculture and forestry fell by nearly 2 million to 8.7 million in November 2024. Employment in fishing and aquaculture also fell by 276,000 to 1.2 million. These job losses, largely attributed to the devastation caused by five typhoons in end-October and November last year, means lost income and livelihoods for millions of Filipino farmers and fisherfolk.
Filipino families are still having a hard time making ends meet due to poor wages, lack of decent work, and high prices. For instance, nationwide, the average daily nominal wage of Php465 is only 38% of the Php1,224 family living wage (FLW) for a family of five.
IBON also estimates, based on Family Income and Expenditure (FIES) data in 2023, that the poorest 50% or some 13.7 million families earn Php23,000 or less per month. Around 70% or some 19.2 million families earn Php29,000 or less per month. These figures fall short of IBON’s estimated Php26,417 monthly FLW, as of November 2024.
Such low incomes are pushing more families into poverty and hunger. The number of families considering themselves poor has risen to 16.3 million or 59% of all families, while the number of families experiencing hunger has increased to 6.3 million, according to the latest September 2024 survey of the Social Weather Stations.
IBON said that as the 2025 elections approaches, Filipinos need leaders in government who do not take official statistics at face-value, which is the only way to start genuinely addressing workers’ reality of low wages and lack of decent work. They could start with ensuring substantial wage hikes and support for small business and producers. In the long term, the government needs to prioritize and strengthen domestic agriculture and industries by funneling more funds and resources into these areas. Doing so will jumpstart the sustainable job generation that the nation needs.
