Unemployment rate drops to 6.7% in July, lowest since pandemic

According to [Manila Bulletin], the unemployment rate in the country dropped from 7.7 percent in June to 6.9 percent in July, lowest jobless since the pandemic broke out last year, owing to easing movement restrictions, but the local labor force also weakened as people were worried of getting sick,Philippine Statistics Authority (PSA) reported Tuesday, Sept. 7.

In terms of magnitude, there were about 3.1 million unemployed individuals aged 15-years and above in July, that is 1.5 million lower compared with the 4.6 million reported in the same month last year and fewer by around 700,000 from June’s 3.8 million.

However, the PSA reported that the labor force participation rate (LFPR) fell to 59.8 percent, equivalent to 44.7 million Filipinos who were either employed or unemployed.

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The July 2021 LFPR is the lowest reported rate this year and also below the 61.9 percent level reported in the same month last year.

“The unemployment rate fell to its lowest since the start of the pandemic due to more relaxed quarantines, but risk aversion and precautionary behavior led to a decrease in the labor force participation rate,” the government’s economic team said in a statement.

In July, Metro Manila registered a significant improvement in unemployment rate, dropping from 14.4 percent in April to 9.0 percent as quarantine restrictions were eased from modified enhanced community quarantine (MECQ).

Unemployment rate drops to 6.7% in July, lowest since pandemic . (Photo / Retrieved from Manila Bulletin)

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Between May 15 and July 31, the National Capital Region (NCR) was under varying general community quarantine (GCQ) restrictions.

According to [Manila Bulletin], in areas outside NCR, the unemployment rate also improved from 7.9 percent to 6.5 percent in the same period.

However, despite the improved unemployment rate, the reduction in LFRP resulted in a net job loss of 3.4 million from June to July, bringing total employment to around 800,000 below pre-pandemic level