Philippines’ jobless rate fell to 3.9% in August 2025

The Philippines’ unemployment rate dropped to 3.9 percent in August 2025 from 4.0 percent a year earlier and 5.3 percent in July 2025, according to the Philippine Statistics Authority (PSA).

The decline translates to the number of unemployed individuals falling to 2.03 million in August 2025 from 2.07 million in August 2024 and 2.59 million in July 2025, the PSA said, citing the August 2025 Labor Force Survey.

The underemployment rate, which covers employed persons seeking additional hours or work, also eased to 10.7 percent in August 2025 from 11.2 percent a year ago and 14.8 percent in July 2025. This means 5.38 million of the 50.10 million employed individuals desired more work hours in August 2025.

The labor force participation rate (LFPR) rose to 65.1 percent in August 2025, representing 52.13 million Filipinos aged 15 and over in the labor force. This was up from 64.8 percent in August 2024 and 60.7 percent in July 2025.

The Department of Economy, Planning and Development (DEPDev) welcomed the overall developments in the labor market, saying these results reflected a strong labor market performance.

“These positive labor market indicators reflect our collective effort to sustain economic growth while ensuring that more Filipinos benefit from it. We are working to generate not just jobs, but quality jobs that will raise incomes, reduce underemployment, and improve the overall well-being of our people,” said DEPDev Secretary Arsenio Balisacan.

He said that DEPDev aims to build on these positive developments through the advancement of policies and strategies under the Trabaho Para sa Bayan [TPB] Plan 2025-2034.

“Guided by the TPB Plan, we aim to support the transformation of the labor force toward higher-paying and more productive jobs by attracting investments, developing a competitive and skills-ready workforce, and strengthening labor market governance to effectively respond to evolving conditions,” he said.

Balisacan also underscored the importance of enhancing labor market resilience, especially for the vulnerable sectors, amid global headwinds, domestic challenges and the growing impact of climate change.

He also cited the need to support programs such as the government internship program to equip the youth with essential skills for the workforce and foster lifelong learning.  

“As industries evolve, we must ensure that our workers are equipped with the competencies required in new and emerging sectors—so that no Filipino is left behind in our country’s development journey,” he said.

The employment rate was estimated at 96.1 percent in August 2025, a slight increase from 96.0 percent in August 2024 and 94.7 percent in July 2025. The number of employed persons increased to 50.10 million from 49.15 million in August 2024 and 46.05 million in July 2025.

The services sector continued to account for the largest share of total employment at 61.5 percent, followed by agriculture with 20.4 percent and industry at 18.1 percent. The subsectors with the highest employment were wholesale and retail trade; repair of motor vehicles and motorcycles (20.2 percent), agriculture and forestry (17.4 percent); and construction (10.5 percent).

The top five sub-sectors showing an annual increase in the number of employed persons were construction (540,000); fishing and aquaculture (448,000), administrative and support service activities (307,000); and agriculture and forestry (300,000).

Wage and salary workers made up the largest class of workers at 64.4 percent of the employed, followed by self-employed without any paid employee (27.0 percent), unpaid family workers (7 percent), and employers in own family-operated farm or business (one point six percent).

Among wage and salary workers, those in private establishments held the highest share at 78.0 percent. The average hours worked per week for employed persons was 41.0 hours in August 2025, higher than the 40.7 hours recorded a year earlier.

Employment rate for youth, aged 15 to 24 years old, also rose to 88.3 percent in August 2025 from 88.0 percent in August 2024 and 81.9 percent in July 2025.

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