Commuters wait for public transportation along Ortigas Extension in Cainta, Rizal, Sept. 14, 2022. — PHILIPPINE STAR/ WALTER BOLLOZOS

By Miguel Hanz L. Antivola, Reporter

The job market saw a 10% jump in annual hiring activity fueled by regional holiday spending and a high demand for goods and services, according to a report.

The insights tracker of talent platform foundit showed the employment index of the Philippines reach 128 in December, up from 116 in the same period in 2022.

“The final quarter marked the economy’s best performance in the year 2023,” Sekhar Garisa, chief executive officer of foundit, said in an emailed press statement on Monday.

“We have stepped into 2024 by showcasing remarkable growth and resilience across sectors,” he added.

Preliminary results of the Philippine Statistics Authority’s Labor Force Survey showed the unemployment rate fell to 3.6% in November from 4.2% in the previous month and in November 2022.  

This was the lowest record since the PSA revised the definition of “unemployed” in April 2005 to refer to people aged 15 years and older without a job and are available for work and actively seeking one.

For the first 11 months of 2023, the unemployment rate stood at 4.5%, well below the 5.3%-6.4% target under the Philippine Development Plan.

The employment rate — the share of the employed Filipinos to the total working force — rose to 96.4% in November from 95.8% in October and November 2022.

According to foundit, the retail sector recorded the largest increase in hiring activity demand with 60%, followed by education (49%), business process outsourcing and IT-enabled services (11%), and healthcare (11%).

Positive growth trends were also seen in engineering, construction, and real estate (9%), logistics (7%), advertising, media, public relations, and entertainment (6%), and hospitality (4%).

foundit noted holiday demand and government-led upskilling initiatives and apprenticeship programs as drivers for job market growth.

However, it added the skills gap, global competition, and scattered demand for logistics as challenges for the market.

foundit said these caused a downturn for IT and telecommunications (18%), fast-moving consumer goods and packaged food (14%), banking, financial services, and insurance (4%), and production or manufacturing and automotive and ancillary industries (1%).

Among functions, customer service professions had the highest increase in hiring with 26%, followed by human resources and admin (18%), marketing and communications (17%), and logistics and supply chain (15%).

Other functions that have seen growth included software, hardware, and telco (6%), sales and business development (4%), engineering, production, and real estate (4%), and hospitality and travel (3%).

Additionally, finance and accounts professionals posted a 1% decrease, while healthcare roles maintained its activity.

Mr. Garisa underscored the need to reimagine recruitment approaches given the dynamic job market.

“[Artificial intelligence] is now a global reality, and the local workforce needs to enhance its core competence,” he said.

“With the support and initiatives from the Filipino government and private sectors, issues concerning the ease of doing business, power, and upskilling would be addressed,” he added.

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