The Philippines’ unemployment rate dropped to 3.8 percent in February 2025, the lowest in three months, as more Filipinos joined the labor force and secured better-quality jobs, according to the Philippine Statistics Authority (PSA).

Data from the statistics bureau showed the number of unemployed Filipinos declined to 1.94 million from 2.16 million in January. This translates to an unemployment rate of 3.8 percent, down from 4.3 percent the previous month, and the lowest since the 3.1 percent recorded in December 2024.

The labor force participation rate (LFPR) rose to 64.5 percent in February from 63.9 percent in January, meaning 51.09 million Filipinos aged 15 and above were either employed or actively seeking work during the period.

National Statistician Dennis Mapa said the number of employed individuals rose to 49.15 million, an increase from 48.49 million in January and 48.95 million in February last year.

Underemployment also down

The PSA also noted a significant drop in underemployment — the number of people wanting more hours, additional jobs, or new employment with longer hours.

The underemployment rate fell to 10.1 percent from 13.3 percent, representing around 4.96 million workers.

Wage and salary workers remained the largest group among the employed, accounting for 63.2 percent of the total employed population in February 2025.

In terms of annual increases in the number of employed persons by sub-sector, accommodation and food service activities recorded the largest gain with an increase of 377,000. This was followed by fishing and aquaculture, which added 365,000 workers. Public administration and defense, along with compulsory social security, rose by 330,000; construction increased by 258,000; and other service activities added 232,000.