The Philippine labor market showed a slight increase in unemployment in March, with the jobless rate rising to 3.9 percent from 3.8 percent in February, according to the Philippine Statistics Authority (PSA).
The jobless rate translates to 1.93 million Filipinos without jobs, the same level as in February but lower compared to 2.0 million in March last year.
This change reflects a lower labor force participation rate of 62.9 percent in March from 64.5 percent in February, indicating a reduction in the number of Filipinos actively seeking employment.
Approximately 816,000 individuals reported being out of the labor force due to household duties or their decision to return to school.
The employment rate remained steady at 96.1 percent, consistent with the previous year and only slightly lower than February’s 96.2 percent. The number represents 48.02 million employed individuals, which fell from 49.15 million in both February and March of the previous year.
Underemployment, however, saw a notable rise to 13.4 percent in March from 10.1 percent in February, with 6.44 million employed persons expressing a desire for additional work hours or a second job. This suggests that while more individuals are employed, many are seeking better or more stable employment opportunities.
The services sector continued to lead in employment, accounting for 62.0 percent of the workforce, followed by agriculture at 20.1 percent and industry at 17.9 percent. Notably, the education sector saw the most significant annual increase in employment, adding 210,000 jobs. Conversely, agriculture and forestry experienced the largest decline, with a decrease of 609,000 jobs due to seasonality.
Wage and salary workers continued to make up the largest share of employed persons in March 2025, accounting for 63.4 percent of the total employed population.
They were followed by self-employed individuals without any paid employees, who comprised 27.9 percent, and unpaid family workers at 6.6 percent. Employers in their own family-operated farm or business represented the smallest segment, with just 2.1 percent of the total employed.
