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DOF Economic Bulletin on Employment Situation as of January 2021 · Preliminary statistics show that both employment and unemployment
rates have remained steady in January 2021, largely unchanged from the results of the October 2020 survey. Employment rate remained at 91.3% and unemployment rate, 8.7%.
DOF View
· The COVID-19 epidemic is, first and foremost, a health issue that had and continues to have dire economic and, consequently, employment implications. The initial arrival of long-awaited vaccines is a welcome development in the fight against the virus. Managing the risks posed by the virus, through pharmaceutical interventions or otherwise, will be key to allowing more economic activities to resume.
· In the medium- to long-term, the country’s infrastructure program and legislative reforms (e.g., CREATE, GUIDE, PIFITA, amendments to the Public Service Act, Retail Trade Liberalization Act, and Foreign Investments Act) will enhance the country’s competitiveness to attract and catalyze more enterprises, both domestic and foreign, to set up shop. More enterprises will, in turn, translate into more employment and, in the process of attracting the best workers, higher wages. In other words, more employers not only generate higher employment but also potentially higher wages—without having to raise the minimum wage.
Table 1. Selected Employment Indicators
Jan-20F Oct-20P Jan-21P Level ('000)
Population, 15 yo and older 72,841 74,307 74,733
Labor Force 44,934 43,649 45,201
Employed 42,543 39,836 41,248
Underemployed 6,299 5,747 6,589 Unemployed 2,391 3,813 3,953
Ratio (%)
Labor Force Participation Rate 61.7 58.7 60.5 Employment Rate 94.7 91.3 91.3 Underemployment Rate 14.8 14.4 16.0 Unemployment 5.3 8.7 8.7 Source: PSA
Notes: F – Final; P – Preliminary
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