Unemployment in the Philippines climbed to 5.3 percent in July 2025 from 4.7 percent a year ago, the Philippine Statistics Authority (PSA) said Tuesday. It was also higher than the 4.1 percent recorded in April 2025.
The number of unemployed individuals in July was 2.59 million, up from 2.38 million in July 2024 and 2.06 million in April 2025, the PSA said in a statement.
The Department of Economy, Planning and Development (DEPDev) called for stronger measures to boost climate resilience and workforce agility due to the observed softer labor market conditions in July.
It said the rise in unemployment was led by job losses in the agriculture and forestry, fishing and aquaculture and wholesale and retail sectors, which were earlier attributed to adverse weather conditions that disrupted economic activities nationwide.
DEPDev Secretary Arsenio Balisacan cited the need to focus government policies on raising productivity and resilience in agriculture, which experienced a significant drop in sectoral employment. These include modernized production methods, climate-smart practices and stronger market linkages.
“This must be complemented by expanded rural infrastructure, improved digital connectivity, and increased access to training opportunities,” said Balisacan.
He said the effective execution of the Trabaho Para sa Bayan Plan depends on enabling investments in high-value sectors, aligning training and reskilling programs with industry demands, and promoting flexible yet 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,” said Balisacan.
“We are also fully committed to enhancing employability, expanding labor market programs, and collaborating with key stakeholders to future-proof the Filipino workforce,” he said.
The labor force participation rate (LFPR) in July 2025 decreased to 60.7 percent from 63.5 percent in July 2024 and 63.7 percent in April 2025. The LFPR translates to 48.64 million Filipinos aged 15 and over who were in the labor force, down from 50.06 million in July 2024 and 50.74 million in April 2025.
The underemployment rate in July 2025 rose to 14.8 percent, from 12.1 percent in July 2024 and 14.6 percent in April 2025. Of the total underemployed, 51.7 percent worked less than 40 hours a week, while 48.3 percent worked 40 hours or more.
The youth LFPR, for those aged 15 to 24, decreased to 29.5 percent in July 2025 from 34.2 percent in July 2024. The youth underemployment rate was 13.7 percent, higher than the 11.9 percent in July 2024.
The proportion of youth not in education, employment and training (NEET) increased to 15.9 percent from 13.9 percent in July of the previous year.
