The Philippine labor market demonstrated continued resilience and growth in June 2025, driven by improved access to employment opportunities and a significant decline in underemployment. The Department of Economy, Planning, and Development (DEPDev) announced the positive findings today, while also noting a slight uptick in the overall and youth unemployment rates.
Key Findings from the June 2025 Labor Force Survey
The latest Labor Force Survey (LFS) from the Philippine Statistics Authority (PSA) revealed several key trends:
- The underemployment rate dropped to 11.4% in June 2025, a notable improvement from 12.1% in the same period last year. This suggests that more Filipinos are securing employment that matches their skills and preferred working hours.
- This decline in underemployment was largely fueled by a reduction in “invisibly underemployed” workers, particularly in the manufacturing and wholesale & retail trade sectors.
- The unemployment rate saw a slight increase to 3.7% from 3.1% in June 2024.
- Youth unemployment rose to 9.4%, up from 8.6% a year ago, highlighting a critical area for government focus.
Government Initiatives to Address Unemployment and Boost Job Quality
DEPDev Secretary Arsenio M. Balisacan acknowledged the positive trends while emphasizing the need for a targeted response to the rise in youth unemployment.
“These gains reflect the impact of our sustained efforts to improve the overall business climate and create high-quality jobs,” said Secretary Balisacan. “However, we remain cautious due to the slight uptick in unemployment, particularly among the youth. To address this, we are committed to enhancing workforce competitiveness by aligning education and training systems with industry needs.”
The government is actively leveraging several policy reforms to strengthen workforce development and prepare Filipinos for future labor demands. These initiatives include:
- Enterprise-Based Education and Training (EBET) Framework Act: Fostering a culture of continuous, industry-driven learning.
- Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP): Recognizing prior learning experiences to help workers adapt to evolving market needs.
- Proposed Lifelong Learning Development Framework Bill: Promoting a culture of continuous skill development throughout a person’s career.
Additionally, the Marcos Administration is advancing key programs to boost youth employment, such as the Special Program for the Employment of Students (SPES) and the JobStart Philippines Program. These initiatives are complemented by a nationwide roadshow under the Trabaho Para sa Bayan Plan, a long-term blueprint for generating inclusive and high-quality employment.
Investing in High-Value Sectors and Infrastructure
To generate more high-quality jobs, the government is focusing on strengthening key economic sectors and addressing infrastructure bottlenecks.
- The Department of Trade and Industry’s Tatak Pinoy Strategy will guide efforts to bolster local enterprises and attract foreign investments.
- A new Philippine Semiconductor and Electronics Industry Roadmap is being developed to outline key investment priorities and talent development strategies, aiming to position the country as a global leader in the semiconductor industry.
- The government is also accelerating the implementation of Infrastructure Flagship Projects (IFPs) to attract job-creating investments and improve public spending efficiency.
“The numbers show that our efforts are bearing fruit, but more work lies ahead,” Balisacan concluded. “We must accelerate structural reforms to make our labor market more inclusive, competitive, and resilient. Through sustained collaboration and innovation, we aim not just to create more jobs, but to sustain improvements in the lives of all Filipinos.”
