The Department of Economy, Planning, and Development (DEPDev) is urging the government to intensify its efforts to boost climate resilience and workforce agility. This is in response to the country’s labor market experiencing softer conditions in July 2025, a situation attributed to economic disruptions from a series of extreme weather events.
According to the latest Labor Force Survey (LFS) from the Philippine Statistics Authority (PSA), the national unemployment rate rose to 5.3% in July 2025, an increase from 4.7% in July 2024. The underemployment rate—which measures individuals who want more working hours or better jobs—also saw a significant increase, rising to 14.8% from 12.1% in the previous year.
Extreme Weather Events Cause Job Losses
The rise in unemployment is linked to substantial job losses across key sectors. The agriculture and forestry sector saw a decline of 1.4 million jobs, while fishing and aquaculture lost 173,000, and wholesale and retail experienced a drop of 897,000. These setbacks are largely attributed to adverse weather conditions, including multiple tropical cyclones and an intensified southwest monsoon, which caused widespread flooding, landslides, and business interruptions.
DEPDev Secretary Arsenio M. Balisacan emphasized that to address the decline in agricultural employment, government policies must focus on modernizing the sector. This includes promoting climate-smart practices, improving productivity, and establishing stronger market linkages. “This must be complemented by expanded rural infrastructure, improved digital connectivity, and increased access to training opportunities,” Balisacan added.
A Call for Economic Modernization and Workforce Development
In addition to short-term measures, the government is accelerating the implementation of the Trabaho Para sa Bayan Plan, the country’s first 10-year labor market master plan. Secretary Balisacan noted that the successful execution of the plan requires strategic investments in high-value sectors, aligning training programs with new industry demands, and fostering flexible but secure work arrangements.
“The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts,” Balisacan stated. “We are fully committed to enhancing employability, expanding labor market programs, and collaborating with key stakeholders to future-proof the Filipino workforce.”
Balisacan also highlighted the need to reduce the school-to-work transition period and enhance youth employability. He mentioned the importance of expanding youth employment programs such as the Government Internship Program, JobStart, and the Special Program for Employment of Students to equip young Filipinos with the necessary skills for a modern workplace.
“The Marcos administration remains focused on addressing job-skills mismatch and preparing the workforce for the demands of a rapidly evolving economic environment,” Balisacan concluded.
