The unemployment rate in the Philippines 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 Department of Economy, Planning,and Development (DEPDev) said 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.
Malacañang cited the administration’s push to sustain momentum in employment growth, saying this reflects the ongoing government efforts to improve livelihood across the country.
“The government does not stop, and neither does our President in raising the livelihood of every Filipino,” Castro said.
Castro said the administration would continue building on this momentum to generate more jobs nationwide.
The Department of Labor and Employment (DOLE) said it would actively implement and scale up its pre-employment and internship programs to equip Filipino youth with real-life experiences, practical skills, and essential work ethics.
“This is a powerful manifestation of our economy’s resilience and continued strength, reflecting a marked improvement from 4.0 percent recorded in August of last year. This performance is even more impactful when viewed against the 5.3 percent unemployment rate in July 2025, demonstrating an aggressive and successful recovery,” said DOLE Secretary Bienvenido Laguesma.
House committee on labor and employment chairperson and Cavite First District Rep. Jolo Revilla said the latest employment figure is a clear indication of the nation’s steadily expanding economy and an improving labor market under the Marcos administration.
“The decrease in the unemployment rate is proof that the vitality of our economy is returning. More of our compatriots are getting jobs again—and that’s what we want to hear: work for everyone, and work with dignity,” he said.
The PSA said employment rate reached 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.
