The government should be cautious about its claim of a vibrant labor market considering there are over one million unemployed youth and an over 2 million increase in part-time workers. The Marcos administration’s hyping recent jobs figures ignores the millions of Filipino workers who are struggling to find decent work. This in turn prevents the implementation of more effective measures to boost sustainable job creation.

Year-on-year July 2024 labor force figures show that the number of labor force participants increased by 3.2 million to 50.1 million from 46.8 million in July 2023. Employed persons grew by 3.1 million to 47.7 million from 44.6 million, while the number of unemployed went up by a slight 86,000 to 2.4 million from 2.3 million. The number of underemployed meanwhile fell by 1.3 million to 5.8 million from 7.1 million in the same period. 

However, that playing up of seemingly improved labor force figures diverts from growing youth unemployment and increasing prevalence of poor-quality employment.

At a time when more youth are looking for work, the labor market is unable to absorb them, leaving them jobless. There were 919,000 additional youth or those 15-24 years old that joined the labor force, growing to 6.9 million in July 2024 from 6 million in July last year. Around 1.1 million youth were new entrants. The number of employed youths increased by 747,000 to 5.9 million from 5.1 million in the same period.

But there were 1.02 million unemployed youth in July 2024, which is a 172,000 increase from 850,000 previously. Of these unemployed youth, almost 91% or 926,000 are not in employment, education or training (NEET). This could mean that many are at risk of falling into poverty and lack the means  to improve their economic situation.

Also, the so-called vibrancy of the labor market is belied by how most of the new jobs created are likely irregular, temporary and low-paying. This could mean many Filipinos, including the youth, are just taking on whatever work they can find.

Part-time workers grew by a huge 2.4 million to 14.7 million in July 2024 from 12.3 million in July 2023. Those in full-time work only increased by 623,000 to 32.7 million from 32.1 million, while those “with a job, not at work” went up by 87,000 to 283,000.

By class of worker, there was a big hike in informal employment: self-employed persons jumped by 2.4. million to 13.5 million from 11.1 million; unpaid family workers by 816,000 to 2.7 million from 1.9 million; and domestic workers by 145,000 growing to 2.1 million. The month-to-month volatility in informal work is a striking post-pandemic feature of the labor market. The number of wage and salary workers meanwhile only rose by 221,000 to 30.4 million from 30.2 million.

There were nearly 20 million outright informal workers or 41% of total employed persons in July 2024, as per IBON estimates. These include the self-employed, domestic workers and those in own-family operated farm or business including unpaid family workers. This does not yet count the millions of irregular workers in private establishments.

As many as 2.7 million or a whopping 86% of the net increase in the number of employed persons was in sectors paying less than the national average daily basic pay (ADBP). In July 2024, there were employment increases primarily in: wholesale and retail trade (by 1.1 million to 9.8 million); agriculture (by 953,000 to 10.1 million); accommodation and food service activities (by 512,000 to 2.6 million); and construction (by 171,000 to 4.7 million).

These subsectors are among the six worst paying, falling below the Php616 national ADBP. There is an average daily basic pay of Php540 for construction, Php470 for wholesale and retail trade, Php486 for accommodation and food service, and Php344 for agriculture. The remaining two of the worst paying sectors are “other service activities” (Php351) and manufacturing (Php546). Jobs in “other service activities” only increased by 118,000, while manufacturing declined by 154,000. These wages are less than half of the Php1,206 family living wage IBON estimates for July 2024.

There are cracks in the Marcos administration’s façade of a vibrant labor market. Worsening informality and increasing number of youth faced with poor jobs prospects show that the government’s foreign-investment focused job strategy is failing to create sustainable and decent employment.