The labor market strengthened in October as more Filipinos streamed into the workforce, even as unemployment rose from last year’s lows, data from the Philippine Statistics Authority showed Wednesday.
The labor force participation rate climbed to 63.6 percent, up from 63.3 percent in October 2024 and sharply higher than July’s 60.7 percent, bringing 51.16 million Filipinos into the labor force. The surge suggests growing optimism among workers—or increasing necessity—as more people seek job opportunities amid shifting economic conditions.
Unemployment stood at 5.0 percent, higher than the 3.9 percent recorded a year ago but slightly better than July’s 5.3 percent. This translated to 2.54 million job seekers, up from 1.97 million a year earlier. Still, employment expanded in absolute terms, rising to 48.62 million from 48.16 million last year.
Economists typically view this combination—rising participation with rising unemployment—as an indicator of a labor market absorbing new entrants but not fast enough to prevent a temporary uptick in joblessness.
Sectoral performance showcased a mixed but dynamic picture.
Services retained its dominance at 60.6 percent of total employment, followed by agriculture at 21.5 percent and industry at 17.9 percent. Retail and motor vehicle repair remained the single largest subsector at 20 percent of total employment. Significant annual gains came from public administration (257,000), accommodation and food services (180,000), agriculture and forestry (168,000), manufacturing (152,000), and fishing (88,000).
However, several sectors posted steep losses, led by “other service activities” (minus 520,000) and retail (minus 66,000), indicating ongoing structural adjustments. The drop in professional and technical activities (negative 47,000) may reflect global headwinds such as outsourcing slowdowns and cautious corporate spending.
Quarter-on-quarter, agriculture posted a hefty 1.84 million jump—likely reflecting seasonal harvest cycles—while retail, hospitality, public administration and construction also added workers. Wage and salary earners continued to dominate the employment landscape at 64.2 percent, with private establishments absorbing 80 percent of this group.
Underemployment in October fell to 12.0 percent from 12.6 percent in October 2024 and 14.8 percent last July, reflecting an improvement in workers’ access to sufficient hours. Underemployed persons are those who want additional hours in their current job, seek an extra job, or aim for a new job with longer hours. In absolute terms, 5.81 million of the country’s 48.62 million employed individuals fell into this category in October.
Meanwhile, average weekly hours worked inched up to 41.3, a sign of slightly busier workloads. But the rise in workers putting in only minimal hours underscores persistent underemployment pockets.
Overall, October’s figures point to a labor market expanding in scale but still searching for momentum in job quality and stability.
