QUEZON CITY—The Philippines’ unemployment rate saw a slight annual increase in September 2025 to 3.8 percent from 3.7 percent a year ago, as the total number of employed individuals decreased, according to government data.
The jobless rate, however, improved from 3.9 percent seen in August and was the lowest in three months, based on the latest Labor Force Survey by the Philippine Statistics Authority (PSA).
This shows that the Philippine labor market remained resilient in September 2025, with employment levels broadly stable and job quality improving despite ongoing global and domestic challenges, according to the Department of Economy, Planning and Development (DEPDev).
The agency said despite the marginal increase in unemployment, the Philippines continues to perform better than regional peers such as India and China (both at 5.2 percent), although still behind Malaysia (3.0 percent) and Vietnam (2.2 percent).
The underemployment rate eased to 11.1 percent, down from 11.9 percent last year, indicating an improvement in job quality. The decline was primarily driven by a decrease in the number of invisibly underemployed workers (-410,000), particularly in transportation and storage (-155,000) and administrative and support services (-138,000).
The Philippine Statistics Authority (PSA) reported that unemployed individuals rose to 1.96 million in September 2025 from 1.89 million a year earlier but declined from 2.03 million in August 2025.
The employment rate held steady at 96.2 percent, a marginal drop from 96.3 percent in September 2024. The total number of employed persons was estimated at 49.60 million, down from 49.87 million in September 2024.
Data showed that the labor force participation Rate (LFPR) saw a drop to 64.5 percent from 65.7 percent in September 2024, translating to a total of 51.56 million Filipinos aged 15 and over in the labor force.
The underemployment rate—which covers employed individuals who want additional work—improved to 11.1 percent in September 2025 from 11.9 percent a year ago. A total of 5.52 million employed individuals expressed a desire for more hours of work. Of the underemployed, 58.5 percent were visibly underemployed, working less than 40 hours a week.
The services sector maintained the largest share of employment at 61.3 percent, followed by agriculture at 20.9 percent and industry at 17.8 percent.
The construction sub-sector was the top driver of annual job growth, adding 514,000 employed persons compared to the same period last year.
Other top gainers included fishing and aquaculture, and accommodation and food service activities.
The largest annual decreases were seen in other service activities, administrative and support service activities and manufacturing.
Wage and salary workers accounted for more than half, 64.1 percent, of the total employed persons, with those employed in private establishments making up the highest share at 78.7 percent of all wage and salary workers.
The average hours worked per week edged up slightly to 40.5 hours in September 2025 from 40.3 hours in the previous year.
DEPDev Secretary Arsenio Balisacan underscored the importance of continuous education and training, particularly in emerging and in-demand skill areas such as digital literacy, green technologies and higher-value services.
“Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,” Balisacan said.
“To build and strengthen the resilience of our labor markets, the Marcos Administration will focus on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth,” he said.
He cited the recent passage of the Lifelong Learning Development Framework Act, which establishes a system for continuous and accessible learning for the workforce.
“Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units, which will play a key role in promoting lifelong learning,” Balisacan said.
Balisacan also cited the need to strengthen the resilience of vulnerable sectors and upskill the workforce to meet the demand of evolving digital and AI-driven industries. These efforts entail promoting higher-value outsourcing segments such as IT, creative and knowledge process services.
“The government continues to strengthen efforts to promote employability and lifelong learning to equip Filipino workers with the skills required by evolving and emerging industries. This will be key to ensuring that our labor force is able to adapt and thrive in an ever-shifting work environment,” he said.
He also reaffirmed the government’s commitment to the Trabaho Para sa Bayan (TPB) Plan 2025-2034, the national blueprint for generating more and better-quality jobs.
“Guided by the TPB Plan, we are steering the economy toward higher-paying and more productive employment by attracting quality investments, developing a skilled and competitive workforce, and modernizing our industries,” Balisacan said.
