The Philippines added over 1 million employed workers from May to June, but the unemployment rate still climbed to 4.9% as the labor force grew faster than job creation, according to a report by Philstar Biz.
The simultaneous rise in employment and unemployment points to a labor market that is absorbing more workers but is being outpaced by new entrants. Filipinos who were previously outside the workforce may have started looking for jobs as economic conditions improved, expanding the pool of job seekers.
The 4.9% jobless rate remains historically low, but the uptick signals that job creation needs to accelerate to accommodate the country’s growing workforce. Analysts will watch upcoming labor force surveys to see whether employment growth can catch up with labor supply.