Oil shock drives Philippine underemployment rate to near three-year high

[MANILA] The Philippines’ underemployment rate surged to its highest in nearly three years in April even as joblessness eased, with transport workers hit by high oil prices wanting extra hours or jobs.

The percentage of workers seeking additional hours or jobs rose to 15.2 per cent, the highest since July 2023, according to statistics agency data released on Tuesday (Jun 9).

That’s despite the jobless rate easing to its lowest this year at 4.7 per cent, equivalent to 2.4 million unemployed persons. 

“Underemployment is present in specific subsectors” such as transportation that includes drivers of taxis, jeepneys and ride-hailing services, National Statistician Dennis Mapa said at a news conference.

The average hours worked by an employed person declined slightly to 40.2 a week from 40.7 recorded in March. 

The data highlight the impact of the Iran war-triggered oil shock on jobs quality and business activity in the country that imports nearly almost all of its oil requirements from the Middle East.

The Philippine economy grew at a disappointing 2.8 per cent pace in the first quarter as soaring inflation curbed consumption.

The Department of Economy, Planning, and Development said strengthening the resilience of the Philippine labour market remains “a matter of urgency”.

“The latest labour market indicators reflect both the challenges confronting the economy and the resilience of Filipino workers and businesses,” Economic Planning Secretary Arsenio Balisacan said in a statement.

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The government is monitoring the employment impact of recent disruptions, including the Middle East crisis, the El Nino phenomenon, and Monday’s 7.8-magnitude earthquake in Mindanao, he added. REUTERS