CALABARZON emerged as the country’s unemployment hotspot in 2025, underscoring a mismatch between labor participation and job creation in one of the Philippines’ most industrialized corridors, according to the Philippine Statistics Authority.
The region, which includes Cavite, Laguna, Batangas, Rizal and Quezon, posted the highest jobless rate at 5.8 percent, outpacing even Metro Manila, where both jobs and job seekers are most concentrated. The data point signals friction in a growth hub long seen as an extension of the capital’s economic engine.
Participation offers part of the explanation. CALABARZON’s labor force participation rate stood at 63.4 percent, below the national average of 64.1 percent and only the fourth highest nationwide. In effect, fewer people are entering the labor market, yet a larger share of those who do are struggling to find work.
Nationally, the labor market softened at the margins. The participation rate slipped to 64.1 percent in 2025, equivalent to 51.16 million Filipinos in the workforce, while the employment rate edged down to 95.8 percent. That left 2.14 million unemployed, pushing the jobless rate up to 4.2 percent from 3.8 percent in 2024.
Regional disparities remain pronounced. The Bangsamoro Autonomous Region in Muslim Mindanao led in participation at 73.5 percent, while the Bicol Region lagged at 59 percent. At the provincial level, Sulu posted a standout 90.2 percent participation rate, while Tawi-Tawi trailed at 50.9 percent.
Employment quality also diverged. The Cordillera Administrative Region recorded the highest employment rate at 97.3 percent, in sharp contrast to CALABARZON’s 94.2 percent, the lowest among regions.
For businesses and policymakers, the signal is clear. Even in growth centers, labor absorption is no longer keeping pace. Bridging that gap may prove critical as the economy leans on regional engines to sustain expansion.
