The Department of Economy, Planning, and Development (DEPDev) reaffirmed its commitment to enhancing the Philippine labor market today, following the release of the December 2025 Labor Force Survey. While facing global and domestic headwinds, the government is shifting its focus toward high-quality job creation and the completion of large-scale infrastructure projects to kickstart the 2026 economic agenda.
The Philippine Statistics Authority (PSA) reported that the national unemployment rate rose to 4.4% in December 2025, up from 3.1% in the previous year. The data also highlighted a dip in labor force participation and a rise in youth unemployment, which climbed to 12.2%.
However, the report also featured a historic milestone: the underemployment rate plummeted to 8.0%, the lowest recorded figure since the current measurement series began in April 2005.
| Indicator | December 2024 | December 2025 |
| Unemployment Rate | 3.1% | 4.4% |
| Underemployment Rate | 10.9% | 8.0% (Record Low) |
| Labor Force Participation | 65.1% | 64.4% |
| Youth Unemployment | 9.1% | 12.2% |
DEPDev Undersecretary and Officer-in-Charge Rosemarie G. Edillon emphasized that 2026 will serve as a “rally point” to revitalize the Philippine Development Plan (PDP).
“We will prioritize employment creation by restoring consumer and business confidence, reducing the cost of doing business, and expanding reskilling opportunities,” Edillon stated. “The record-low underemployment gives our workers the breathing room to participate in upskilling initiatives, ensuring they remain competitive in a dynamic global environment.”
To address the slowdown, the government outlined a multi-pronged approach:
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Infrastructure & Investment: Accelerating delayed projects and prioritizing high-impact sectors to stimulate immediate hiring.
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Digital Transformation: Facilitating the adoption of AI and digital technologies within the IT-BPM and advanced manufacturing sectors to create specialized, high-value roles.
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Policy Reforms: Working with Congress to institutionalize a more responsive labor market through the Enterprise-Based Education and Training Framework Act.
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Long-term Planning: Executing the Trabaho Para sa Bayan Plan 2025-2034 and the newly launched National Education and Workforce Development Plan 2026–2035.
“By expanding global capability centers and developing specialized digital services, we can enhance the Philippines’ competitive position and ensure that job growth is not just sustainable, but inclusive,” Edillon added.
