Finance chief bullish on job growth as inflation eases, holiday season nears

 

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by: Jimmyley Guzman 

QUEZON CITY (PIA) — The Philippine economy is showing signs of strength, with the job market experiencing a significant boost in August 2024.

Finance Secretary Ralph Recto expressed optimism on Tuesday, October 8, citing the creation of 1.45 million new jobs during the month. This positive trend is further supported by a drop in inflation to a four-year low, which is expected to fuel continued job growth.

The unemployment rate fell to 4.0% in August, down from 4.7% in July and 4.4% in August 2023. This positive trend reflects a growing economy, with the total number of employed Filipinos now reaching 49.2 million, an increase of 1.08 million from the previous year.

“We expect more economic opportunities to be created, especially in the wholesale and retail trade sectors, as the holiday season nears and shopping peaks,” Recto said.

The wholesale and retail trade sectors were the biggest employment drivers, adding 1.15 million workers from the previous month.

Recto highlighted the recent monetary policy easing due to decelerating inflation as a factor that could encourage growth in consumption and investment, leading to more quality employment.

The underemployment rate also improved, dropping to 11.2 percent in August from 12.1 percent in July.

Wage and salary workers made up 62.4 percent of employed persons, with 76.4 percent in private establishments and 16.2 percent in the public sector.

The government is pushing for the enactment of the CREATE MORE bill to attract investments and generate quality jobs in higher value-added sectors. It’s also fast-tracking infrastructure programs and implementing an Artificial Intelligence roadmap to upskill the workforce.

Recto pledged to increase revenue collection efforts to fund education, healthcare, and other human capital development programs to improve Filipinos’ preparedness for quality job opportunities. (JEG/PIA-NCR)