Philippine jobless rate surges to 4-year high as growth slows

The Philippines’ unemployment rate climbed to 6% in July, its highest level in four years, as fresh graduates entered a slowing economy affected by a corruption scandal and a global oil shock.

The statistics agency reported the rate on Sept. 8. It matched the level recorded in June 2022, when the economy was recovering from the coronavirus pandemic. Metro Manila posted the highest unemployment rate at 8.2%, partly because of an influx of new graduates.

More than 3.7 million people joined the labor market compared with a year earlier, National Statistician Dennis Mapa told a briefing. More than 1 million were aged 15 to 24 and had moved from education into the labor force.

The data adds pressure on President Ferdinand Marcos Jr.’s administration as the Philippines faces rising living costs and the highest inflation in Southeast Asia. Companies have become more cautious about hiring as economic expansion weakens. Growth slowed sharply to 2.3% in the second quarter, while the overall business confidence index fell to minus 20.3% in July from zero in June, according to a central bank survey.

The central bank said fewer companies planned to hire workers over the next 12 months because they expected softer growth and continued high inflation. Economic Planning Secretary Arsenio Balisacan said, "More Filipinos are participating in the labour market, which means that we need to intensify efforts to attract investments, especially those that create quality jobs."

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More Filipinos are participating in the labour market, which means that we need to intensify efforts to attract investments, especially those that create quality jobs.