Major increases in some sub-sectors amid major decreases in others
The latest insights from the December 2023 Labor Force Survey exhibit notable shifts in employment and unemployment rates.
The survey found a significant decline in unemployment rate, down to 3.1% from December 2023 from 4.3% in December 2022. Also, the employment rate rose to 96.9% in December 2023, accompanied by an increase in the labor force participation rate to 66.6%.
While the underemployment rate declined to 11.9% from data recorded in December 2022, it remains a persistent concern, according to the report. Approximately 6.01 million employed individuals expressed a desire for increased work hours or better employment prospects, indicating a need for targeted strategies to alleviate underemployment woes.
Dominant sectors for employment
The services sector remains to be the most dominant sector, comprising 57.3% of the employed population, keeping its pivotal role in driving economic activity. Meanwhile, agriculture and industry sectors account for 24.4% and 18.3%% of the employed persons, respectively.
The report also presented the five sub-sectors with the most increases in employment in December 2023 compared to the prior year. These are construction (+777,000); agriculture and forestry (+715,000); accommodation and food service activities (+498,000); transportation and storage (+174,000); and human health and social work activities (+140,000).
On the other hand, the sectors that saw the most decreases in employment year on year are: wholesale and retail trade; repair of motor vehicles and motorcycles (-660,000); administrative and support service activities (-250,000); fishing and aquaculture (-159,000); financial and insurance activities (-132,000); and arts and entertainment (-16,000).
Wage and salary workers continue to constitute the majority of the employed population at 62.7%, followed by self-employed individuals (27.4%) and unpaid family workers (7.8%). Among wage and salary workers, those employed in private establishments, according to the report, remain to account for 78.6%.
The survey sheds light on youth employment trends, with the youth employment rate climbing to 91.8% in December 2023 from 90.5% in December 2022.
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