Philippines’ unemployment rate rose to 5.0 percent in October from 3.9 percent in October 2024, according to the Labor Force Survey (LFS) by the Philippine Statistics Authority (PSA).
Despite this increase, Department of Economy, Planning, and Development Secretary Arsenio M. Balisacan said the full-year unemployment rate of 4.7 percent remains better than the Philippine Development Plan’s (PDP) target for the year and lower than regional peers like China and India.
PSA reported that underemployment—defined as employed persons who desire additional job or more hours of work—fell to 12.0 percent in October 2025 from 12.6 percent in October last year. This improvement was mainly driven by a decrease in visibly underemployed individuals (-176,000), particularly in other service activities (-78,000) and agriculture and forestry (-68,000).
Indicators of employment quality improved, with notable increases in wage and salary workers in private establishments (+863,000), middle- and high-skilled workers (+432,000), and full-time employment (+564,000).
“October’s labor market reflects continued progress in improving the quality of work available to Filipinos,” said DEPDev Secretary Arsenio M. Balisacan.
He emphasized that innovation and digital technologies will be harnessed to enhance employment services, integrate labor market information for better industry-skills matching, and expand skills training programs to support the reskilling and upskilling of Filipino workers.
The survey results also showed that the labor force participation rate, which refers to the percentage of persons aged 15 and over who are either employed or unemployed, increased to 63.6 percent. This indicates that one million individuals have joined the workforce. Total employment reached 48.6 million in October, up by 463,000 from last year.
Meanwhile, unemployment rose to 5.0 percent from 3.9 percent in October 2024. Despite this increase, the full-year unemployment rate of 4.7 percent remains better than the Philippine Development Plan’s (PDP) target for the year and lower than regional peers like China and India.
To sustain gains in job quality and support long-term labor market resilience, the country’s chief economist reiterated that accelerating quality employment generation hinges on a whole-of-society implementation of the Trabaho Para sa Bayan Plan 2025-2034 and the PDP 2023-2028.
“Guided by these plans, the government will boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services,” Balisacan said.
Alongside these efforts, the government will leverage landmark policies to attract investments and create jobs. The Tatak Pinoy Strategy, the country’s first national industrial policy as institutionalized by the Tatak Pinoy Act, identifies priority sectors with strong potential for value-added production, export growth, and employment generation.
