Unemployment deteriorated in October despite a smaller labor force, as the construction industry absorbed massive job losses following the suspension of public works linked to a corruption probe.
According to Philippine Statistics Authority (PSA) data released Wednesday, December 10, the jobless rate climbed to 5%, up from September’s 3.8%. This translates to 2.54 million unemployed Filipinos, compared to 1.96 million the previous month.
The labor force also shrank to 51.16 million from 51.56 million, showing that even fewer jobseekers could be absorbed.
The downturn defied the usual pre-holiday hiring surge, when businesses typically expand their workforce to meet stronger consumer demand.
The congressional investigation into alleged anomalies in flood control funds prompted a halt in bidding and road-blocking works beginning September, triggering steep losses in construction jobs. The sector shed 308,000 workers in September and an additional 414,000 in October, with spillover cuts hitting plumbing and heat insulation (-10,000) and utility contracts (-18,000).
“The sub-sector where there had been a substantial drop in employment, month on month in October versus September was the construction of buildings with a decline of 414,000,” National Statistician Claire Dennis Mapa said.
“So the biggest drag month on month came from the drop in workers in construction of buildings,” he added.
Calabarzon posted the worst unemployment rate at 6.4%, above the national average. Underemployment also worsened to 12%, up from 11.1% in September. Employment among the youth aged 15 to 24 fell, with 85% finding work compared to 88.4% the previous month.