THE Philippines' unemployment rate eased to 3.9 percent in May 2025, a slight decrease from 4.1 percent in both April 2025 and May 2024, according to Philippine Statistics Authority (PSA) on Tuesday, July 8, 2025.
The country’s labor force participation rate (LFPR) for May 2025 rose to 65.8 percent, totaling 52.32 million individuals aged 15 and above who are part of the labor force. Of these, 50.29 million are employed, while 2.03 million are jobless.
The underemployment rate was an estimated 13.1 percent in May 2025. This is higher than May 2024's 9.9 percent but lower than April 2025's 14.6 percent.
Underemployed individuals are those who are working but desire additional hours in their current job, an additional job, or a new job with longer hours.
The PSA reported that the service sector continues to hold the highest employment share at 61.8 percent of total employed persons, followed by agriculture at 21.1 percent and industry at 17.1 percent.
Among subsectors, wholesale and retail trade, and repair of motor vehicles, accounted for 19.8 percent of employment. Agriculture and forestry followed at 18.8 percent, and construction at 9.5 percent.
Wage and salary workers comprise over half of the employed population at 62.8 percent.
Self-employed individuals without paid employees make up 27.9 percent, unpaid family workers 7.5 percent, and employers in their own family-operated farm or business 1.8 percent.
The average weekly work hours decreased slightly to 39.8 hours in May 2025, from 40.6 hours in May 2024 and 39.9 hours in April 2025.
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan stated that the increase in the LFPR indicates a healthy and competitive Philippine labor market.
He believes a larger workforce contributes to increased economic output and potentially higher gross domestic product growth.
"This also reflects growing confidence in the labor market and the impact of ongoing efforts to expand access to employment opportunities across sectors,” Balisacan said.
Balisacan reiterated the Marcos Administration's commitment to creating high-quality, high-paying jobs for Filipinos.
He mentioned that the government’s continued focus on critical Infrastructure Flagship Projects will address gaps and attract job-generating investments.
He also underscored the need to enhance public spending efficiency and allocate fiscal resources to high-impact areas, including quality education, healthcare, food security, and connectivity infrastructure.
Balisacan added that equipping Filipinos with in-demand skills and competencies will ensure the country’s workforce remains agile in an increasingly competitive and dynamic labor market.
"We will leverage recently enacted policy reforms to improve upskilling and reskilling initiatives," he said.
These initiatives are detailed in the "Trabaho para sa Bayan Plan," which recently launched.
The government also aims to create an environment that attracts more Global Capability Centers (GCCs) to the Philippines, supporting the country's shift toward high-value IT-BPM services.
As digital technologies advance, Balisacan said the government will release timely guidelines on the “Future Workforce in an AI Workplace.”
This aims to assist government agencies, industry players, labor groups, academic institutions, and workers in integrating AI into their operations while safeguarding jobs through enhanced digital literacy and AI-related skills. (TPM/SunStar Philippines)