MANILA (UPDATE 2)—The Philippines' job market improved in August as the unemployment rate fell and the underemployment rate also decreased as more women joined the workforce and got hired, the state statistics bureau said on Tuesday.

The jobless rate fell to 4 percent in August from 4.7 percent in July and was also lower than the 4.4 percent clip registered in August last year. This meant that 2.07 million Filipino workers were unemployed, down from 2.38 million in July. 

The underemployment rate meanwhile fell to 11.2 percent in August from 12.1 percent in July and 11.7 percent in August last year. This meant that 5.48 million were considered underemployed in August, down from 5.78 million in July and 5.63 million in August last year. 

National Statistician and PSA Undersecretary Dennis Mapa said that a major factor in the improvement of the country's employment figures was the entry of more women into the workforce as well as their absorption into various industries. 

From August last year to August this year, about 1.03 million female workers got jobs, Mapa said.  

"Karamihan sa kanila, 1.085 million, worked for more than 40 hours," Mapa said, noting that this meant that most of these female workers were not underemployed and that most of them were also working in salaried, or higher quality jobs.

He added that the female workers were absorbed by four main sectors: wholesale and retail trade, public administration and defense, accommodations and food service, and other services such as personal care. 

Mapa also noted that a significant part of those working in wholesale and retail trade was in online sales, or what the PSA classified as retail trade by mail, phone, and internet which added 284,000 jobs. 

The PSA said it expects the economy to add more jobs in the coming days as the onset of the "ber" months usually translate to more workers getting hired in time for the Christmas holidays. 

Inflation eases further in September amid slower increases in rice prices

Another factor that may contribute to job generation is easing inflation. The inflation rate fell to 1.9 percent in September, and Mapa said that this may boost consumer confidence and consumer spending which in turn may help generate more jobs. 

"You know sa ating GDP, yung household final consumption expenditure, substantial noon over our total GDP 

So kung maraming bumibili, particularly nitong last quarter natin, that would create jobs, particularly dito sa ating sales and services sector. Ang kanyang impact is positive. But of course, we will have to look at the figure by the end of September," Mapa said. 

The National Economic and Development Authority also said Filipinos "are in for a potentially better holiday season" following the release of the latest employment figures. 

"Coupled with the country's four-year-low inflation rate in September 2024 at 1.9 percent, the positive results of our labor force survey can lead us to a more vibrant holiday season," NEDA Secretary Arsenio Balisacan said.

NEDA said the drafting of the Trabaho Para Sa Bayan (TPB) Plan 2025-2034 will begin next month, which will lead to the crafting of the master plan on job creation.

Balisacan also called for the swift passage of the Konektadong Pinoy Bill,  which he said would boost ICT, education, health, and agriculture. 

"Such advancements will immensely expand our countrymen's access to various market opportunities as well as programs on upskilling and retooling to equip Filipinos for better jobs," he added.

He added that key infrastructure projects are critical to attracting investments in manufacturing and agribusiness, as well as raising labor productivity.

"With the government's continued focus on attracting strategic investments and the timely passage of key reforms, the Philippines is well-positioned to translate its promising macroeconomic fundamentals into long-term prosperity for its workforce and economy," he stated.

Finance Secretary Ralph Recto also welcomed the August employment figures, which followed the report of the easing inflation clip in September.

“I am very glad of the back-to-back good news. Asahan po natin na mas maraming trabaho ang magbubukas para sa ating mga kababayan dahil sa patuloy na pagbaba ng inflation rate na magpapalakas sa kita ng ating mga negosyo at bawat pamilya. At the same time, we expect more economic opportunities to be created, especially in the wholesale and retail trade sectors, as the holiday season nears and shopping peaks,” Recto said.