Deindustrialization seen driving underemployment

A LABOR GROUP said on Thursday that the underemployment accompanying the uptick in jobs in August reflects what it called the country’s “mediocre” performance in job generation as deindustrialization takes further hold of the economy.

In a statement, the Sentro ng mga Nagkakaisa at Progresibong Manggagawa (SENTRO) said that while the August Labor Force Survey readings may show a gain in number of jobs, underemployment remains high as stable manufacturing jobs decline.

“The increase in employment amidst trade turbulence, corruption-induced flooding, and a deepening political crisis is surprisingly positive — but this reflects the resilience of Filipino workers, not any coherent government policy,” it said.

The group urged the administration to adopt a clear industrial policy to rebuild the manufacturing base, protect domestic industry, and promote value-added manufacturing.

It also pushed for a public employment program that creates jobs in climate adaptation, social care and community infrastructure, areas it said would “meet public needs while providing decent livelihoods.”

SENTRO said that the Philippines risks being trapped in a cycle of “growth without decent work” unless the government intervenes decisively.

“Workers deserve more than survival jobs — they deserve secure, living-wage employment with dignity and purpose,” the group said.

“The real measure of progress,” SENTRO added, “is not how many Filipinos have jobs, but how many have decent, secure, and meaningful work.”

The underemployment rate dropped to 10.7% in August from 14.8% in July and 11.2% a year earlier.

The number of underemployed totaled 5.38 million. The underemployed are defined as those seeking more working hours or additional jobs.

The Philippine Statistics Authority on Wednesday showed that unemployment eased to 3.9% in August from 5.3% in July, which had been a three-year high due to the impact of typhoons and monsoon rains during the month.

The improved jobless reading was attributed to recoveries in agriculture and construction after weather disruptions in July, as well as stronger hiring in administrative work and fisheries.

Analysts have cautioned that underemployment remains sensitive to seasonal factors and vulnerable to weather-related shocks, especially in agriculture and retail, underscoring the need for more stable and higher-quality job creation. — Chloe Mari A. Hufana