HOW SHOULD WE MEASURE THE UNEMPLOYMENT RATE?

HOW SHOULD WE MEASURE THE UNEMPLOYMENT RATE? Unemployment is one of the most closely watched indicators of a nation’s economic health. In the Philippines, how exactly do we measure unemployment — and are we doing it the right way? Every country has its own method for measuring unemployment, and here in the Philippines, we follow global practices to a certain extent. The Philippine Statistics Authority (PSA) conducts the Labor Force Survey (LFS), like what other countries do. However, unlike a full census where every household is counted, the LFS relies on a sample of the population. This raises the question: Are we getting an accurate picture of unemployment when we depend on surveys rather than a complete census? In most cases, an unemployed person is described as someone who is (1) jobless, (2) actively looking for work, and (3) available to start working immediately. This definition is quite standard worldwide. Following this logic, those who are not actively looking for work and those who are not ready to work should not be counted as unemployed. But why are some people not looking for work? There could be many reasons. Some might be living off their inheritance or the interest from their bank deposits. Others might be running their own businesses. Meanwhile, some are simply discouraged after failing to find suitable jobs. There are also individuals who are not ready to work, perhaps because they are dealing with personal problems or are prioritizing other matters. Some might lack the skills or certifications needed for the jobs available to them. Given the size of our population, I do not blame the national government for relying on sample surveys rather than trying to count every unemployed person through a nationwide census. However, at the local level, it is both feasible and practical for LGUs to conduct their own employment censuses — especially through their Public Employment Services Office (PESO). Think about it: in every city, municipality, and barangay, the jobless individuals who are actively seeking work and ready to work would likely be willing to register with their local PESO offices if they knew it would help them find jobs. Many, in fact, may have already done so. This type of local census could give LGUs a clearer and more realistic picture of unemployment within their jurisdiction. It may be controversial to say, but I agree with the government’s approach of excluding those who are not looking for work and not ready to work from the unemployment count. After all, some of these individuals may be involved in informal activities — or even illegal ones — which makes their economic status difficult to classify. Lack of training and certification is also a factor that keeps some individuals not ready for work. Fortunately, PESO offices could step in to offer training programs and help job seekers become qualified for available jobs. To further help job seekers, I have personally developed a website where jobless individuals can register for free. Employers, both local and international, will pay a modest annual fee to post job openings on the site. This is not illegal recruitment — the website functions purely as a social media platform for job opportunities. We do not recruit anyone directly; we simply post information. In addition, my platform offers optional assistance for job seekers who want to undergo training and certification programs. Ultimately, the unemployment data at the LGU level should not be static — it should be updated monthly. This dynamic approach would better reflect how well local officials are implementing job creation programs. Accurate unemployment data is not just about numbers — it’s a gauge of good local governance and economic vitality. There is no single perfect way to measure unemployment. Some countries use the LFS method, others rely on unemployment insurance claims, while some track underemployment and discouraged workers. In the Philippines, combining the LFS method with local PESO registration data could provide a more comprehensive and accurate picture of unemployment. At the end of the day, we need to measure unemployment not just to produce statistics, but to truly understand the realities faced by Filipino workers. Whether at the national or local level, getting the numbers right is the first step toward crafting effective policies and programs that can create more jobs, better livelihoods, and ultimately, a more inclusive economy. Ramon Ike V. Seneres, www.facebook.com/ike.seneres iseneres@yahoo.com, 09088877282, senseneres.blogspot.com 04-01-2025