Unemployment rate among Filipinos marginally decreases to 3.7%
Job Market Trends in the Philippines, June 2025
In June 2025, the unemployment rate in the Philippines decreased to 3.7%, marking a reduction from 3.9% in May 2025[1][2][3][4]. This decrease corresponds to a drop in the number of jobless Filipinos from approximately 2.03 million to about 1.95 million[1][2][3][4]. However, this rate is still higher compared to the 3.1% unemployment rate recorded in June 2024, which had around 1.62 million unemployed persons[1][3].
Key employment trends in June 2025 include:
- The employment rate rose slightly to 96.3%, with the services sector employing more people[2][5]. Despite this increase, job losses continued in construction, agriculture, and manufacturing[2][5].
- The labor force participation rate (LFPR) stood at 65.7%, indicating a slight decline from previous months and from last year[2][3][4]. This suggests fewer working-age Filipinos engaged or actively looking for work.
- Underemployment improved to 11.4% (about 5.8 million underemployed), down from 6.6 million the previous month[2][4]. This signals some gains in job quality.
- Youth unemployment increased to 9.4% from 8.6%, raising concerns about employment difficulties among young people[1].
Government officials emphasize ongoing efforts to boost workforce competitiveness, especially for youth, by aligning education and training with industry needs and improving school-to-work transitions[1][2].
In June 2025, the services sector had the highest share of employment, accounting for 61.4% of the total employed persons[6]. Agriculture had the second-highest share, accounting for 20.9% of the total employed persons[3]. The top three employment subsectors were wholesale and retail trade, agriculture and forestry, and construction[3].
Employment decreased annually in the subsectors of construction, agriculture and forestry, manufacturing, arts, entertainment and recreation, and mining and quarrying[7]. However, employment increased annually in the subsectors of fishing and aquaculture, wholesale and retail trade, repair of motor vehicles and motorcycles, financial and insurance activities, transportation and storage, and human health and social work activities[7].
In summary, while the overall jobless rate in June 2025 decreased compared to May 2025, challenges remain with youth unemployment rising, job losses in certain sectors, and a slight dip in labor force participation[1][2][3][4]. The government's focus on improving workforce competitiveness, particularly for youth, is a promising step towards addressing these issues.
References:
[1] Philippine Statistics Authority. (2025). Labor Force Survey June 2025. Retrieved from www.psa.gov.ph
[2] Department of Labor and Employment. (2025). Employment Situation Report June 2025. Retrieved from www.dolet.gov.ph
[3] Bangko Sentral ng Pilipinas. (2025). Labor Market Report June 2025. Retrieved from www.bsp.gov.ph
[4] National Economic and Development Authority. (2025). Jobs Report June 2025. Retrieved from www.neda.gov.ph
[5] ABS-CBN News. (2025). Unemployment rate drops to 3.7% in June 2025. Retrieved from news.abs-cbn.com
[6] Philippine Statistics Authority. (2025). Labor Force Survey June 2025: Employment by Industry Sector. Retrieved from www.psa.gov.ph
[7] Philippine Statistics Authority. (2025). Labor Force Survey June 2025: Employment by Industry Sector Annual Percent Change. Retrieved from www.psa.gov.ph
- Despite the improvement in overall joblessness, concerns persist due to the rise in youth unemployment to 9.4%, highlighting ongoing employment difficulties among younger generations.
- In addition to addressing youth employment, the Philippine government is focusing on policy-and-legislation and culture to better align education and training with industry needs, potentially impacting the entertainment and recreation sector.
- The services sector saw the highest employment rate in June 2025, accounting for 61.4% of the total workforce, but decreases in sectors like construction, agriculture, and manufacturing have been annually observed, while growth has been seen in subsectors such as fishing, retail trade, transportation, and health and social work activities.
