Research group IBON questioned the government’s claim that the Philippine labor market ended 2024 on a positive note and remained steady. The group said that the Marcos Jr administration is rather tone-deaf considering employment declined and unemployment rose. Millions of Filipinos also struggled with poor-quality jobs, low incomes and worsening poverty, said IBON.

The number of employed persons fell by 339,000, from 50.5 million in December 2023 to 50.2 million in December 2024. There was a slight increase in unemployment by 27,000, from 1.6 million to 1.63 million, while underemployment dropped by 530,000, from 6 million to 5.5 million in the same period. IBON said the lower employment and higher unemployment figures are signs of a shaky, not steady, labor market.

Also, while total underemployment declined, the number of invisibly underemployed persons grew by 355,000, up from 2.4 million to 2.7 million. This means that despite working 8 hours or more a day, an increasing number of employed persons are seeking additional work due to low and insufficient earnings.

The prevalence of informal employment is another indication of the poor jobs situation. IBON estimates that there are 20.6 million openly informal workers or 41.1% of total employed persons. If those working in informal private establishments are counted, informal workers would reach 36 million, or 7 out of 10 employed persons. 

The government’s hype seems further out of place considering that the country’s productive sectors are bleeding jobs, said the group. Agriculture lost a huge 1.6 million jobs –- the biggest of all December rounds which started in 2021 – falling to 10.7 million in December 2024 from 12.3 million in December 2023. Manufacturing jobs also decreased by 387,000 to 3.4 million from 3.8 million.

The lack of decent work and low incomes are resulting in more poor and vulnerable Filipinos. The number of self-rated poor families grew to 17.4 million in December 2024 from 13 million in December 2023, according to Social Weather Stations survey data.

IBON said that the Marcos Jr administration’s optimism over the labor market shows it deliberately ignores Filipino workers’ reality. For the labor market to be genuinely steady and even robust, the nation needs leaders who, for a start, can champion substantial wage hikes and subsidies for small businesses and producers. They should also be committed to strengthening domestic agriculture and industries, which can in turn generate sustainable jobs and further boost the country’s stagnant economy.