Manila — The unemployment rate in the Philippines is expected to further decrease in the coming months, buoyed by a seasonal uptick in employment due to the Christmas period, according to a statement made by an economist on Thursday.
According to Philippines News Agency, chief economist at Rizal Commercial Banking Corporation (RCBC), communicated via a Viber message to the Philippine News Agency, the uptrend in spending, demand, and sales associated with the holiday season is anticipated to necessitate the temporary hiring of additional workers. This trend, which has been observed for many years, is projected to lower the unemployment rate to 4 percent or possibly below, improving from the 4.4 percent recorded in August of the current year.
The sectors expected to increase their workforce include restaurants, caterers, travel, tourism, and other service-related businesses and industries. Ricafort credited the easing of COVID-19 restrictions as a significant factor contributing to the expected downturn in unemployment figures. He suggested that the unemployment rate might surpass the previous year's December low of 4.2 percent, potentially reaching the lowest levels since revised records began in 2005.
Despite this positive outlook, Ricafort cautioned that there might be a minor uptick in the unemployment rate following the conclusion of the seasonal employment period linked to the holiday festivities. This increase, however, is likely to be mitigated by the greater number of working days and reduced holidays after the new year begins.
The official labor force data for September will be disclosed by the Philippine Statistics Authority on November 8, 2023. The latest available data as of the end of August indicates that there were approximately 2.21 million unemployed individuals in the country.