Philippines Jobless Rate climbs to 13.7%

The Philippines' unemployment rate rose to a two-year high of 13.7 percent in April, despite healthy economic growth in the first three months of 2004, data from the National Stati

The jobless rate, released every quarter, was up from 11.0 percent in January and 12.2 percent in April last year. The rate was at 13.9 percent in April 2002. A total of 5 million were out of work last April, compared with 3.90 million in January and 4.2 million in April last year. In the national capital region, including Metro Manila, a staggering 19 percent or one out of five able-bodied Filipino capable of working cannot find a job. Joblessness usually peaks in April, reflecting out of work agricultural workers waiting for the rains to start a new planting season. "Although some of the slack has been taken up by the service sector, the labor shedding in the agricultural sector is expected to outpace the take-up rate in the services sector," JP Morgan said in a note to clients. JP Morgan said the country's unemployment may be pressured further in 2005 when the garment export quotas to the United States, Canada and the European Union under the Multi-Fiber Agreement end in January 2005. Despite economic growth of 6.4 percent in the year through the first quarter, the fastest pace in five years, the Philippines is struggling to create enough jobs for its rapidly growing population. Nearly 10 percent of its 80 million population work abroad and send money home to support their families. The Philippines has had the highest unemployment rate in Southeast Asia for the past six years, according to data from the Asian Development Bank. The NSO said there were 5.0 million unemployed people in April compared with 3.899 million in January and 4.2 million in April last year. The National Capital Region, which includes Manila, recorded the highest unemployment rate of 18.8 percent, up from 16.9 percent in January, the statistics office said. The national employment rate fell to 86.3 percent in April from 89.0 percent in January and 87.8 percent in the same month last year. The number of employed people in April was at 31.5 million, up from 30.4 million a year earlier.