Philippines’ July misery index rises to three-month high
Key Takeaways
- •The Philippines' adjusted misery index rose to 24.3% in July from 22.7% in June.
- •The July reading was the highest in three months, since the 26.3% recorded in April.
- •The country's unemployment rate climbed to 6% in July, its highest level in more than four years.
- •The adjusted measure combines inflation, unemployment, and the adjusted underemployment rate, building on economist Arthur Okun's original index.
- •Lower misery index readings generally indicate improving economic conditions.
The Philippines’ adjusted misery index rose to 24.3% in July from 22.7% in June, reaching its highest level in three months, or since the 26.3% recorded in April, according to BusinessWorld Online.
The increase came as the country’s unemployment rate climbed to 6% in July, its highest level in more than four years.
Originally developed by economist Arthur Okun, the misery index is widely used as a proxy for economic distress. The adjusted measure combines the adjusted underemployment rate* with inflation and unemployment to provide a broader gauge of economic hardship. This means the July reading is intended to capture combined labor-market and price pressures rather than unemployment alone. Lower readings generally indicate improving economic conditions.
