The average annual income of Philippine households will increase by 15% by 2023

THE AVERAGE annual income of the Philippine population The number of households increased by 15% in 2023 as wages and job quality improved, the Philippine Statistical Authority (PSA) said.

Preliminary data from the PSA showed that the average annual income of Philippine households increased from P307,190 in 2021 to P353,230 in 2023.

In 2023, the average annual expenditure of Filipino families increased by 12.8% from P228,800 in 2021 to P258,050.

The increase in income was attributed to the increase in wages, salaries and entrepreneurial activities during that period, Secretary of State and national statistician Claire Dennis S. Mapa told a newsletter.Fing.

By region, the National Capital Region (NCR) had the highest average annual household income in 2023 at P513,520, up 22.9% from P417,850 in 2021.

Calabarzon followed in second place with P426,530 in 2023, up 18.1% from P361,030 in 2021. This was followed by Central Luzon with P375,240 in 2023, up 14.2% from P328. 540 in 2021.

On the other hand, the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) recorded the lowest average annual household income at P206,880 in 2023, followed by the Zamboanga Peninsula with P257,140 and the Negros Island region with P266,290.

In terms of expenditure, NCR also had the largest annual average household expenditure at P385,050 in 2023, followed by Calabarzon with P310,320 and Central Luzon with P298,700.

BARMM also had the smallest average household expenditure at P168,910, followed by Mimaropa Region at P189,770 and Eastern Visayas at P199,910.

National Economic and Development Authority (NEDA) Secretary Arsenio M. Balisacan said Business world that the government wants to improve the quality of jobs to increase the household incomes of Filipinos in the coming years,

“Quality employment is this government’s top priority because… we already have a historically low unemployment rate. You can’t do better now that you know, because that’s the kind of rate you see in very mature economies,” he said.

In 2023, the unemployment rate dropped to a record low of 4.3%. The unemployment rate – or the percentage of working Filipinos looking for more work or longer working hours – fell from 14.2% in 2022 to 12.3% in 2023.

“The triple sources of economic growth such as BPOs (business process outsourcing), OFW remittances and tourism must be complemented by growth in the manufacturing sector,” said Union Bank of the Philippines, Inc. chief economist Ruben Carlo O. Asuncion said in a Viber message.

Mr. Asuncion also said the government must build the necessary digital infrastructure to help support growth.

PSA data also shows that the Gini coefficient, which measures income inequality, fell from 0.4063 in 2021 to 0.3909 in 2023, PSA data shows. A Gini cowffThe icy reading of ‘0’ would mean perfect equality, while ‘1’ suggests perfect inequality.

POVERTY
PSA data also shows that the poverty rate has fallen from 18.1% in 2021 to 15.5% in 2023, while inflation is high.

The number of poor Filipinos decreased by 12.26% from 19.99 million in 2021 to 17.54 million in 2023.

“It is good that income is rising faster than food inflation. But of course, if food inflation is lower, the reduction in poverty could be much, much greater,” Mapa said.

InFInflation averaged 6% in 2023, the highest in fourteen years. It was also the second year in a row that inflation exceeded the BSP’s target range of 2-4%.

The PSA said a family with FFive members were required to have at least 13,873 euros per month to meet their minimum basic needs for food and non-food by 2023.

Of the regions, nine had a poverty threshold higher than the national average, led by Central Luzon with P16,046, followed by NCR with P15,713, and Calabarzon with P15,457.

On the other hand, the Soccsksargen region had the lowest poverty line at 12,241 euros.

By region, the NCR recorded the lowest poverty incidence among the population at 1.8%, while the BARMM had the highest rate at 32.4%.

Meanwhile, the national poverty rate among five-member families has improved from 13.2% in 2021 to 10.9% in 2023. This equates to 2.99 million Filipino families who do not have enough income to meet their basic food needs and non-food supplies.

Among the regions, NCR had the lowest poverty incidence at 1.1%, while the Zamboanga Peninsula had the highest at 24.2%.

The administrative region of Caraga showed the greatest improvement as its poverty rate fell by 11 percentage points from 25.9% in 2021 to 14.9% in 2023.

FOOD THRESHOLD
According to the PSA, the food threshold for a family is FI increased by 14.7% from P8,353 in 2021 to P9,581 in 2023, mainly due to high food intakeFlat. This would mean that the food threshold per person per day is P64.

Food threshold refers to the minimum income an individual or a family needs to meet their basic food needs, “that meets the nutritional requirements for economically necessary and socially desirable physical activities.”

Mr Mapa said the food threshold is based on a sample food parcel containing three meals and snacks.

Based on the national food bundle, breakfast consists of scrambled eggs, coFallowance and cooked rice or rice-corn mix, while lunch is being cooked monggo of malunggay and dried dilisbanana and boiled rice. Dinner consists of fried Ffish or boiled pork, vegetables and boiled rice, while snacks consist of bread and boiled root vegetables.

“This is very simple,” said Mr Mapa. “Most likely, a lot of people won’t be happy with it. But that’s how the collection came about. And of course there is science behind it.”

Mr Mapa said the PSA is reviewing the methodology used for the food poverty threshold.

“We are in an evaluation process and as I said, we have already started with the coaching staffFfng PSA to review our methodology, the menu,” Mr. Mapa said in mixed English and Filipino. — BMDC