The country’s unemployment rate inched up to 3.8 percent in September 2025 from 3.7 percent a year earlier, equivalent to 1.96 million Filipinos without work, the Philippine Statistics Authority (PSA) reported Thursday. Despite the slight uptick, the number of jobless declined from 2.03 million in August, suggesting some improvement in hiring momentum.
The labor force participation rate (LFPR) slipped to 64.5 percent from 65.7 percent in September 2024, translating to 51.56 million Filipinos aged 15 and above who were either working or actively seeking work. The lower participation rate may reflect seasonal trends and fewer job seekers entering the labor market.
Employment reached 49.60 million, down from 49.87 million in the same month last year, bringing the employment rate to 96.2 percent. The services sector remained the top employer, accounting for 61.3 percent of total jobs, followed by agriculture at 20.9 percent and industry at 17.8 percent.
By subsector, wholesale and retail trade continued to lead employment (20.6 percent), followed by agriculture and forestry (17.9 percent) and construction (10 percent). Construction, fishing, and food service were among the fastest-growing subsectors, while manufacturing, transportation, and administrative support saw declines.
The underemployment rate eased to 11.1 percent from 11.9 percent last year, indicating fewer workers seeking longer hours or additional jobs. Economists said the figures point to a stable but cooling labor market as economic growth moderates and businesses adjust to slower demand.
