Philippines Unemployment Issues

Rates of Unemployment in the Philippines

The country's unemployment rate increased slightly to 6.6 percent in December 2021 from 6.5 percent in November 2021. In terms of magnitude, the overall number of unemployed people in December 2021 was expected to reach 3.27 million, up 113 thousand from November 2021's figure of 3.16 million. (Table A)In December 2021, the labor force participation rate (LFPR) climbed to 65.1 percent, up from 64.2 percent in November 2021. The LFPR for December 2021 was the highest for the entire year of 2021. The increase in the LFPR equates to around 910 thousand Filipinos aged 15 and up who were either employed or unemployed.

As the economy recovered from the coronavirus disruptions, the Philippines' unemployment rate fell to 6.4 percent in January 2022, down from 8.8 percent a year earlier. The unemployment rate was 2.93 million in January 2021, down from 3.96 million in January 2021. Meanwhile, the number of people employed increased to 43.02 million from 41.25 million the previous year. Workers in the services sector accounted for 58.9% of all employed people, followed by those in agriculture (21.7%) and industry (20.7%). (19.3 percent). At 60.5 percent, the labor force participation rate remained steady. According to the current economic situation, the unemployment rate was 6.6 percent in December 2021.

Reasons for Unemployment in the Philippines

Overpopulation

In recent years, the Philippines has had a strong population growth rate, with averages of 1.7 percent and 1.2 percent, continuously outperforming the global population growth rate. High population growth, which ensures a steady supply of graduates, has surpassed the rate at which jobs are generated, resulting in graduate unemployment.

Undergraduate

College students continue to enroll in popular but once-in-demand college courses. These graduates have abilities that aren't in great demand in the job market after they graduate. As a result, there is a mismatch of skills.

Lack of Skills and Experience

Due to a lack of necessary skills and experience, jobless persons and fresh graduates are unable to access the labor market. Some may believe that taking a career unrelated to the college course he or she took is unfathomable. Because some job postings require a significant amount of experience, many job seekers are unable or unwilling to start their own business as an alternative to being employed. With little or no entrepreneurial skills, many job seekers are unable or unwilling to start their own business as an alternative to being employed.

Lack of understanding of job application

It's difficult, if not impossible, to get a job if you don't know where to start. Even when glancing at a job description, some of them can't figure out how to fill out a form, send an e-mail, or find the address of the recruitment firm. A few people may leave comments on a news piece to show their interest in it.

Discrimination and unreasonable job requirements

In the Philippines, a simple job vacancy draws far too many applicants. In order to pre-qualify applicants, employers have imposed criteria that are otherwise discriminatory and unreasonable (or dissuade those who are not fit). Take a look at a typical job advertisement for a cashier. To work as a cashier, you must be of a specific height and age, which are also stated upfront in this hygiene-conscious culture. Many Filipino organizations place a priority on appearances, age, and other non-essential qualities rather than experience and talents (at least for a cashier job). Customers must pay you even if you don't look very appealing; is the cashier's chair too high for you to reach the required height? It's possible that these companies are unable to pay.

Poverty cycle

In 2015, the Philippines had a poverty rate of 21%. Poverty can cause unemployment in a number of ways, both directly and indirectly. Families in this group are unable to send their children to school and want them to help support the family as soon as feasible by joining the labor market. Construction assistants, house help, and other low-paying jobs may harm their future career advancement. Without a formal education, their chances of finding decent work are poor.