The country’s unemployment rate increased to 3.8 percent in February, up from 3.5 percent in the same month last year, according to the Philippine Statistics Authority (PSA). The rise in unemployment, which translates to an additional 140,000 unemployed individuals, brings the total number of jobless Filipinos to 1.94 million, up from 1.80 million in February 2024.
Despite the increase in unemployment, the number of employed persons also grew, reaching 49.15 million in February 2025, an increase from 48.95 million in the previous year. This suggests that while more individuals entered the labor force, a relatively higher number were unable to secure jobs, impacting the overall employment rate.
In terms of sectoral distribution, the services sector remained the dominant industry, employing 61.6 percent of the total workforce. This was followed by agriculture, which employed 20.1 percent of the workforce, and industry, which accounted for 18.3 percent. The services sector’s sustained growth highlights its resilience, as it continues to absorb the majority of the labor force despite broader macroeconomic challenges.
However, the labor force participation rate saw a slight dip, easing to 64.5 percent in February 2025 from 64.8 percent a year earlier, indicating a marginal decrease in the proportion of working-age individuals actively seeking employment. At the same time, employed individuals worked an average of 41.1 hours per week, up from 40.1 hours in February 2024, suggesting a slight increase in labor force utilization.
The rise in unemployment amidst steady employment growth highlights ongoing challenges in the labor market, where economic expansion may not be fully translating into employment opportunities for all Filipinos. This shift presents a key concern for policymakers, who must focus on fostering job creation across diverse sectors, especially as the nation navigates an evolving macroeconomic landscape.
