THE Davao Region reported an unemployment rate of 3.553 percent in July 2025, higher than the 3.073 percent recorded in the same month the previous year, according to the Philippine Statistics Authority (PSA). Despite the increase, the region remained below the national average and continued to rank among areas with relatively stronger labor market conditions.
The national unemployment rate was estimated at 5.3 percent, higher than 4.7 percent in July 2024 and 4.1 percent in April 2025. This translated to 2.59 million unemployed Filipinos in July, up from 2.38 million a year ago and 2.06 million three months earlier.
Employment also weakened. The number of employed persons dropped to 46.05 million in July 2025, from 47.68 million in July last year and 46.67 million in April 2025. The employment rate slid to 94.7 percent, compared with 95.3 percent in July 2024 and 95.9 percent in April.
The country’s labor force participation rate (LFPR) also declined to 60.7 percent, equivalent to 48.64 million Filipinos aged 15 and over who were either working or looking for work. This was down from 63.5 percent or 50.06 million in July 2024 and 63.7 percent or 50.74 million in April 2025.
By sector, services continued to dominate employment at 62.8 percent, followed by industry (18.7 percent) and agriculture (18.5 percent). However, both agriculture and wholesale and retail trade suffered sharp employment losses over the year, reflecting continuing pressures in rural and consumer-driven jobs.
Underemployment, or workers seeking additional hours or better jobs, climbed to 14.8 percent in July 2025 from 12.1 percent last year, affecting 6.8 million Filipinos. Youth labor force participation also fell to 29.5 percent from 34.2 percent in July 2024, while the share of young Filipinos not in education, employment, or training (NEET) increased to 15.9 percent.
By region, the Cordillera Administrative Region (CAR) registered the highest employment rate at 96.6 percent, while the Bicol Region had the lowest at 92.3 percent. Eight regions posted unemployment rates higher than the national average: Bicol Region (7.7 percent), Calabarzon (6.6 percent), Central Visayas (6.1 percent), Mimaropa (6.0 percent), Negros Island Region (5.7 percent), Zamboanga Peninsula (5.6 percent), Western Visayas (5.6 percent), and Eastern Visayas (5.3 percent).
Despite national headwinds, the Davao Region’s labor market continues to show relative resilience with a lower-than-average unemployment rate. Still, PSA said the overall rise in joblessness, declining labor force participation, and persistent underemployment highlight continuing challenges in creating stable and quality employment nationwide.