PH unemployment rate rises 10 percent in July, 4.6 million unemployed due to pandemic

MANILA – The Philippines’ unemployment rate jumped 10 percent in July as closures aimed at slowing the spread of the virus forced many businesses to close and reduce the number of workers.

This translates to 4.6 million unemployed Filipinos, 2.2 million more compared to 2.4 million in July 2019, National Statistician Claire Dennis Mapa said in a virtual press conference.

“10 percent of the 4.6 million Filipinos in the workforce were unemployed or in business in July 2020. The unemployment rate of 10 percent is 2.2 million higher than the July 2019 figure of 2.4 million, “Mapa said.

(10 percent of the 4.6 million Filipinos in the workforce are unemployed in July 2020. The unemployment rate of 10 percent is higher at 2.2 million compared to 2.4 million in July 2019. )

The National Capital Region (NCR), the economic epicenter of the country, recorded the highest unemployment rate at 15.8 percent, while the lowest was recorded in the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) with 3.8 percent.

Unemployment was at 5.4 percent in July 2019, while underemployment at 13.9 percent and the labor force participation rate at 62.1 percent, government data showed.

In April, the unemployment rate rose 17.7 percent, or a total of 7.3 million unemployed Filipinos, which the government said reflected the “effect of the economic shutdown.”

Some analysts feared that unemployment could worsen in July as new graduates entered the workforce.

“We fear a worst-case scenario of unemployment reaching 22.9 percent … the current reading should reflect the influx of recent graduates who would likely have struggled to get jobs in this challenging job market,” ING Philippines senior economist Nicholas Mapa previously said.

Hundreds of thousands of overseas Filipino workers who lost their jobs were also repatriated, which could affect remittances this year.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno said that remittances could contract 5.5 percent this year due to the pandemic.

The Philippines entered a recession after a sharp 16.5 percent drop in gross domestic product in the second quarter.

Metro Manila and some other provinces remain under general community quarantine as the government struggles to balance the health and safety of workers, as well as to reopen and revive the economy.