THE Philippines’ unemployment rate eased to 3.9 percent in August 2025 from four percent a year earlier, reflecting a stronger labor market as more Filipinos joined the workforce, data from the Philippine Statistics Authority (PSA) showed Wednesday, Oct. 8, 2025.
The number of jobless individuals fell to 2.03 million from 2.07 million in August 2024 and 2.59 million in July 2025. This came as the labor force participation rate (LFPR) climbed to 65.1 percent, equivalent to 52.13 million Filipinos aged 15 and above who were either employed or seeking work, up from 51.22 million a year earlier.
Employment improved to 96.1 percent, or about 50.10 million people working in August, from 96 percent in August 2024 and 94.7 percent in July. The services sector continued to dominate the jobs landscape, accounting for 61.5 percent of total employment, followed by agriculture at 20.4 percent and industry at 18.1 percent.
Construction posted the biggest annual increase in employment, adding 540,000 jobs, followed by fishing and aquaculture (448,000) and administrative and support services (307,000). However, wholesale and retail trade lost 788,000 jobs year-on-year, while education and health services also posted declines.
Underemployment — those seeking more work hours or additional jobs — fell to 10.7 percent from 11.2 percent a year ago, translating to 5.38 million underemployed workers. On average, employed persons worked 41 hours per week in August, slightly higher than last year’s 40.7 hours.
Wage and salary earners made up 64.4 percent of the employed, with the private sector accounting for nearly four-fifths of this group. Self-employed workers represented 27 percent, while unpaid family workers comprised seven percent.
Among the youth aged 15 to 24, employment rose to 88.3 percent from 88.0 percent a year earlier, although 11.5 percent of them were underemployed.
Stronger labor market
Socioeconomic Planning Secretary Arsenio Balisacan welcomed the stronger labor market, saying the gains reflect the government’s commitment to expanding decent and productive employment opportunities.
“We are working to generate not just jobs, but quality jobs that will raise incomes, reduce underemployment and improve the overall well-being of our people,” he said.
Balisacan said the administration aims to build on these improvements through the Trabaho Para sa Bayan Plan 2025–2034, which targets the creation of higher-paying and more productive jobs through investments, skills development and stronger labor market governance.
He added that protecting vulnerable workers in sectors like retail trade and agriculture remains a priority amid global and domestic headwinds. / KOC