THE approaching holidays have led to a rise in employment, the Philippine Statistics Authority (PSA) said on Wednesday, with the jobless rate reported to have dropped to 3.7 percent in September from 4.0 percent and 4.5 percent, respectively, a month and a year earlier.

This was equivalent to 1.89 million Filipinos without jobs, 177,000 less than August's 2.07 million and down by 370,000 from September 2023's 2.26 million.

National Statistician Claire Dennis Mapa told reporters that "because of the holiday season, more [people] want to work."

More female workers had joined the labor force, particularly in the retail sector, leading to a higher female labor force participation rate (LFPR) of 55.7 percent from 54.7 percent in August and 53.4 percent a year earlier.

This brought the number of employed women to 21 million, surpassing both the previous month's 20.54 million and the 19.66 million recorded a year ago.

The overall LFPR, which tracks the percentage of working-age Filipinos active in the labor market, rose 65.7 percent in September from 64.8 percent and 64.1 percent a month and a year earlier.

Job quality, however, worsened as underemployment — which counts those looking for more work or an extra job — rose to 11.9 percent from 11.2 percent in August and 10.7 percent in September 2023

The underemployed were said to number 5.94 million, higher than August's 5.48 million and the yearago 5.11 million.

The employment rate, which edged up to 96.3 percent from 96.0 percent in the previous month and the year-earlier 95.5 percent, was equivalent to 49.87 million individuals with jobs, higher than August's 49.15 million and September 2023's 47.67 million.

The services sector continued to dominate the labor market in September in terms of the number of employed persons, with a share of 62.8 percent.

Socioeconomic Planning Secretary Arsenio Balisacan said that enhancing job quality and increasing worker incomes remained a priority for the government.

"We are sustaining our efforts to enhance all dimensions of our labor market," he said in a statement.

"The government is urgently addressing the constraints to high-quality job creation and collaborating with the private sector to capacitate our workers with the right skills and competencies simultaneously," he added.

Fast-tracking major infrastructure projects, especially in energy, logistics, and digital connectivity, will be crucial to realizing the country's growth potential, Balisacan continued.

He said that the passage of the Konektadong Pinoy bill, aimed at enhancing the country's digital infrastructure, would help in upskilling and reskilling Filipino workers.

Approval of the Lifelong Learning and Enterprise-Based Education and Training Framework bills will further boost workforce employability, Balisacan added.

"We will strengthen collaboration with the private sector and academe to upskill the workforce, particularly in using digital technologies and other innovations," the National Economic and Development Authority said.

The government is also finalizing the Trabaho Para sa Bayan (TPB) Plan — a 10-year roadmap aimed at encouraging investment in priority sectors, improving workforce skills and enhancing labor market governance.

Regional consultations concluded in October, and the TPB Plan is expected to be completed by the end of 2024.