July 1st, 2021
The May jobs figures are a positive development, but I caution the government that many jobs remain fragile and contingent on recovery support.
The unemployment rate decreased from 8.7 percent in April 2021 to 7.7 percent in May 2021. The underemployment rate also fell from 17.2 percent in April to 12.3 percent in May. Meanwhile, the labor force participation rate increased from 63.2 percent in April to 64.6 percent in May. This suggests the creation of 1.5 million jobs between April and May 2021. Total employment continues to exceed pre- COVID-19 levels with a net job creation of 2.2 million since January 2020.
These are good employment numbers, but the quality and resilience of these jobs is what will determine the durability of our signs of recovery.
As of today, almost 7% of the population has received their first dose of COVID-19 vaccines. Certainly, the improving vaccination rate will strengthen job creation. I am also convinced that as vaccination rates further improve, it will be strategic to embark on a true stimulus program. When people are able to go out of their homes and to more activities, the impact of economic stimulus will be more effective. The first two Bayanihan packages were not stimulus. They were merely rescue packages.
A third Bayanihan package remains in order. This must be paired with an aggressive credit stimulus plan for business recovery and new business development. I have already asked the Government Financial Institutions to have action plans and facilities in place. More, better, and more durable jobs will come from the creation and expansion of new businesses, and the recovery in aggregate demand.