The Philippine labor market demonstrated significant strength in January 2025, as reported by the Philippine Statistics Authority (PSA). The unemployment rate fell to 4.3%, down from 4.5% a year prior, while underemployment decreased to 13.3% from 13.7%, indicating an improvement in job quality.
A notable surge in labor force participation was also recorded, rising to 63.9% from 61.1% in January 2024. This increase translates to 2.6 million new entrants into the workforce, with 1.4 million in their prime working age. Particularly encouraging is the rise in youth participation, which climbed to 31.8% from 29.7%, reflecting greater engagement among young Filipinos.
Socioeconomic Planning Secretary Arsenio M. Balisacan attributed this positive performance to the government’s strategic efforts to cultivate a business-friendly environment and equip the workforce with in-demand skills. “While we celebrate these gains, we acknowledge the prevalence of vulnerable employment,” Balisacan stated. “Our focus remains on driving job creation through a dynamic, investment-driven economy, while simultaneously preparing our workforce for high-growth, high-quality sectors.”
To sustain this momentum, the government is prioritizing industry-aligned workforce development. Initiatives such as the Technical Education and Skills Development Authority’s (TESDA) Enterprise-Based Education and Training are crucial for bridging the gap between education and labor market needs.
The recently implemented Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act is expected to further enhance the investment climate. By streamlining fiscal incentives and improving the ease of doing business, the Act aims to attract both domestic and foreign investment, generating more job opportunities and fostering a skilled workforce.
Balisacan also emphasized the need for agricultural resilience to mitigate vulnerable employment. The government plans to modernize early warning systems using artificial intelligence (AI) for improved disaster prediction.
Furthermore, the government will collaborate with the IT-BPM sector to address the rising skill demands associated with AI integration through reskilling and upskilling initiatives.
The National Economic and Development Authority (NEDA) is actively seeking public input on the Trabaho Para sa Bayan (TPB) Plan 2025-2034, a comprehensive roadmap designed to create a more inclusive, efficient, and dynamic labor market in the Philippines.
