Thursday, November 6, 2025

PH unemployment rate eases in September

The Philippines’ unemployment rate in September this year stood at 3.8 percent, down from 3.9 percent a month earlier, but slightly higher than 3.7 percent a year earlier. This is the lowest unemployment rate since June at 3.7 percent, according to the  Philippine Statistics Authority (PSA).

This translates to 1.96 million unemployed Filipinos, lower than the 2.03 million recorded in August 2025 but slightly higher than the 1.89 million in the same month last year.

Despite the marginal increase, the PSA noted that the country continues to perform better than regional peers such as India and China (both at 5.2%), though still behind Malaysia (3.0%) and Vietnam (2.2%).
The construction sub-sector was the top driver of annual job growth, adding 514,000 employed persons compared to the same period last year.
The services sector maintained the largest share of employment at 61.3 percent, followed by agriculture at 20.9 percent and industry at 17.8 percent. Meanwhile, the agriculture and fisheries sectors also posted gains, adding around 439,000 workers during the period.

In terms of underemployment rate or employed individuals who want additional work registered improvement to 11.1 percent in September 2025 from 11.9 percent a year ago.

There were a total of 5.52 million underemployed individuals in September. Majority or 58.5 percent were working less than 40 hours a week.

The labor force participation rate (LFPR) decreased to 64.5 percent, from 65.7 percent last year. Among the youth (aged 15 to 24), LFPR fell to 31.6 percent, down from 33.9 percent in the same period the previous year.
As a result, the employment rate held steady at 96.2 percent, a marginal drop from 96.3 percent in September 2024. The total number of employed persons was estimated at 49.60 million, down from 49.87 million in September 2024.

In a statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan underscored the importance of continuous education and training, particularly in emerging and in-demand skill areas such as digital literacy, green technologies, and higher-value services.

“Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,” Balisacan said. “To build and strengthen the resilience of our labor markets, the Marcos Administration will focus on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth.”

He cited the recent passage of the Lifelong Learning Development Framework Act, which establishes a system for continuous and accessible learning for the workforce.

“Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units, which will play a key role in promoting lifelong learning,” the DEPDev Chief said.

Balisacan also highlighted the need to strengthen the resilience of vulnerable sectors and upskill the workforce to meet the demand of evolving digital and AI-driven industries. These efforts entail promoting higher-value outsourcing segments such as IT, creative, and knowledge process services.

“The government continues to strengthen efforts to promote employability and lifelong learning to equip Filipino workers with the skills required by evolving and emerging industries. This will be key to ensuring that our labor force is able to adapt and thrive in an ever-shifting work environment,” he said.

The nation’s chief economist also reaffirmed the government’s commitment to the Trabaho Para sa Bayan (TPB) Plan 2025-2034, the national blueprint for generating more and better-quality jobs.

“Guided by the TPB Plan, we are steering the economy toward higher-paying and more productive employment by attracting quality investments, developing a skilled and competitive workforce, and modernizing our industries,” Balisacan concluded.

 

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