MANILA — The Philippines' unemployment rate dipped to 3.1 percent in December 2024, from 3.2 percent in November, the Philippine Statistics Authority (PSA) said on Thursday.   

The PSA said there were 51.81 million Filipinos in the labor force in December, slightly higher than the 51.2 million seen the month before.

The underemployment rate meanwhile climbed to 10.9 percent in December from 10.8 percent in the previous month.

The PSA defines underemployment as workers who already have jobs but are looking for extra jobs or job hours. A high underemployment rate is usually seen as an indicator that the jobs available are of low quality. 

The PSA said the transportation and storage industry added the most number of jobs year on year at 555,000. This was followed by construction (236,000), administrative and support services (223,000), public administration and defense and compulsory social security (211,000), and human health and social work activities (197,000). 

National Statistician Claire Dennis Mapa said he believes transportation jobs increased because of the holiday season.

"Karamihan dito ay doon sa passenger transport by road. And sa tingin ko ito ay effect talaga ng ating holiday season. Kasi malaki dito yung sinasabi ko kanina, airport shuttle, so yung mga dumarating, mga taxi cabs, so that’s mainly due to activities related to the holidays,” he said.

Sectors that saw the biggest job losses, meanwhile, are agriculture and forestry (1.56 million), manufacturing (387,000), other service activities (166,000), and wholesale and retail trade and repair of motor vehicles and motorcycles (106,000).

Mapa said the agriculture sector continued to be affected by typhoons, with 557,000 losing their jobs growing rice in paddy fields. Some 424,000 Filipinos also lost their jobs in planting, transplanting, and other related activities.

The services sector remained the top source of jobs with 60.5 percent of the total employed persons in September, the PSA said. The agriculture and industry sectors accounted for 21.3 percent and 18.3 percent of the employed persons, respectively. 

The National Economic and Development Authority (NEDA) said the government would continue to encourage “more inclusive work arrangements that meet the needs of individuals from diverse backgrounds.”

The government also said it would boost reintegration efforts for returning overseas Filipino workers (OFWs) in light of shifting immigration policies under the administration of United States President Donald Trump.