The Philippines job market recorded an uptick of 10% in annual hiring in December 2023, according to the latest foundit Insights Tracker (fit) report.

The index reached 128 in December 2023, marking a significant leap from 116 in December 2022.

According to the tracker, the hiring activity in the region has been gradual and has revealed a continuous improvement in the labour market. On a monthly basis, there was a 10% rise in hiring activity in December as well, as November reflected an index value of 116 (same as December 22).

Additionally, the last three months saw an (8% year-on-year) uptick in hiring activity in the Philippines. This surge in job opportunities, especially in the last month of 2023, was fuelled by heightened regional holiday spending, which led to an increased demand for goods and services. This provided a substantial boost to the job market, and with the upskilling initiatives by the Filipino government, there has been a significant rise in the employment rate.

Sekhar Garisa, CEO, foundit, said, “We have stepped into 2024 by showcasing remarkable growth and resilience across sectors. In this dynamic landscape, we need to also fundamentally reimagine the approach we take for recruitment. AI is now a global reality, and the local workforce needs to enhance its core competence. With the support and initiatives from the Filipino government and private sectors, issues concerning the ease of doing business, power, and upskilling would be addressed. The final quarter marked the economy’s best performance in the year 2023. We are hopeful that this encouraging trend would further push for good numbers in the region.”

On a year-on-year basis, the index showed that the retail sector continued to dominate the job market with a (60%) increase in online hiring demand, driven by heightened demand for goods and services during the festive season. Simultaneously, the upskilling initiatives and apprenticeship programs initiated by the government, led to a 49% increase in hiring in the education sector.

Conversely, certain sectors such as IT, Telecom/ISP and BFSI faced significant challenges owing to the skill gaps and global competition existing in the market, registering a decline of 18%) and 4% simultaneously.

By job function, customer service professionals witnessed a 26% surge in hiring, primarily attributed to the continuous expansion within the BPO sector. Following closely, HR & Admin professionals experienced an (18%) increase, while marketing & communications professionals also made a noteworthy stride with a (17%) growth in hiring demand over the year.

The only function that showcased a decrease in hiring in December 2023 was finance & accounts (-1%). Meanwhile, Healthcare (0%) roles maintain a consistent but muted demand annually during the same period.

The foundit Insights Tracker offers a detailed perspective on hiring patterns in the Philippines.