Christy Balita
Research expert covering the Philippines
Employment in the Philippines - statistics & facts
The Philippine labor market has shown signs of recovery, with the lowest estimated unemployment rate recorded since 1999, as reported by the World Bank. This equates to more than 90 percent of the working age population with employment, the majority of whom were classified as wage and salary workers. However, concerns about job quality, skill mismatch, and lower wages persist as rapid digitalization threatens job security and income sustainability among the Filipino workforce.
Although the unemployment rate slightly decreased in 2022, concerns about skills mismatch within the labor pool were raised as several industries, such as construction, lacked a pool of skilled workers. This comes at a time when college diplomas were deemed more crucial than skills-based competencies. Moreover, numerous industries have pushed for the digitalization of their business transactions and processes, resulting in a higher demand for tech-based skills that most displaced workers lack. To address this, the budget for the TESDA (Technical Education and Skills Development Authority) was raised to increase the number of technical vocational schools in the Philippines. TESDA offers vocational courses in ICT, technical and vocational education and training (TVET), and automotive, among others, which can also be taken online.
Labor situation in the Philippines
The Philippines is largely a services-based economy, with this sector accounting for the majority of the employed population share. Most employed Filipinos were engaged in the wholesale and retail trade and the repair of motor vehicles and motorcycles in 2023, which was also a considerable contributor to the country’s GDP, right next to manufacturing. In terms of occupation, the majority of employed Filipinos were engaged in elementary occupations, followed by service and sales workers. Meanwhile, working children, which account for less than five percent of the total workforce, mostly work in the services and agriculture sectors.Although the unemployment rate slightly decreased in 2022, concerns about skills mismatch within the labor pool were raised as several industries, such as construction, lacked a pool of skilled workers. This comes at a time when college diplomas were deemed more crucial than skills-based competencies. Moreover, numerous industries have pushed for the digitalization of their business transactions and processes, resulting in a higher demand for tech-based skills that most displaced workers lack. To address this, the budget for the TESDA (Technical Education and Skills Development Authority) was raised to increase the number of technical vocational schools in the Philippines. TESDA offers vocational courses in ICT, technical and vocational education and training (TVET), and automotive, among others, which can also be taken online.
Calls for job creation and better employment protection
Despite a gradual improvement in the labor market in the Philippines, numerous issues persist that continue to affect the country’s economic growth. Job displacement and skill mismatches could undermine efforts to boost productivity in various sectors. To address this, government programs to expand the skills of its workforce through vocational training were expected to bridge labor gaps. In addition, efforts to boost foreign investment in the Philippines could create more jobs in the infrastructure, ICT, and manufacturing industries. Labor groups were also pushing for increased minimum wages and unemployment insurance to protect workers from future economic and labor market disruptions.
