Malacañang has pointed to the ongoing conflict in the Middle East and the resulting global oil crisis as the main catalysts behind the rise in the Philippines’ unemployment rate.
Fresh data shows the country’s jobless rate climbed to 4.8% in May—translating to 2.5 million unemployed Filipinos—up from the 3.9% (2.03 million individuals) recorded during the same timeframe last year.
During a press briefing on Wednesday, July 8, Communications Undersecretary and Palace Press Officer Claire Castro stated that the administration had anticipated these economic challenges, particularly their fallout on the agricultural sector.
”Ito po naman ay talagang inaasahan dahil nga po naging reason ang global oil crisis,” Castro stated.
She mentioned that the government, spearheaded by Agriculture Secretary Kiko Laurel, is currently assessing the fallout from the geopolitical tensions.
”Kahit po sa parte ng agrikultura… tinitingnan din po ito ni Secretary Kiko Laurel anong sektor dahil talaga pong malaki rin po ang naging epekto ng naging kaguluhan sa Middle East sa ating mga kababayan,” she added.
Philippine Statistics Authority (PSA) figures indicate a year-on-year drop of around 660,000 jobs, bringing total employment down to 49.63 million. Agriculture and forestry bore the brunt of the downturn, bleeding 905,000 workers.
While National Statistician Claire Dennis Mapa primarily attributed these losses to climate shocks like El Niño, Castro stressed that soaring fuel prices severely compounded the burden.
Pointing out the struggles within the fishing sector, Castro observed:
”Halimbawa po iyong mga mangingisda, dahil nga po sa taas ng krudo… may mga mangingisda tayong apektado.”
Consequently, numerous workers in agriculture and fisheries have drifted away from their traditional trades to seek alternative livelihoods.
”Since hindi naman sila makapangisda… iyong iba nating mga miyembro ng agrikultura, instead na sila ay manatili na farmer or mangingisda, minsan… lumilipat sila ng ibang maaaring pagkakitaan,” Castro explained.
Employment contractions were also logged in public administration, retail trade, and domestic services. Nonetheless, the Palace assured the public that President Ferdinand Marcos Jr. and his economic managers have been drafting preemptive safety nets.
”Hindi po siya napag-usapan in particular, dahil even before po na nagkaroon po ng kaguluhan sa Middle East ay nagiging parte na po ito ng usapan para po maibsan nga po iyong impact sa ating mga kababayan,” she said.
Conceding that financial subsidies are merely temporary cushions against fluctuating fuel costs, the Palace maintained that government interventions remain active to provide timely relief.
”Hindi naman po ito pinapabayaan, lagi po itong mino-monitor ng ahensiya ng gobyerno at marami pong ginagawa,” Castro said, concluding, “Nandoon pa rin po iyong interventions ng government para po kahit papaano ay maibsan nga ang impact nitong nararanasan natin.”
Amid the labor slump, the PSA reported a silver lining as underemployment dropped to 12.2% in May, improving from 13.1% a year ago and 15.2% in April.