The country’s unemployment rate rose to 3.7 percent in June — up from 3.1 percent a year earlier — despite a record number of Filipinos entering the workforce, according to data released Wednesday by the Philippine Statistics Authority (PSA).

The PSA reported that 1.95 million people were unemployed in June, an increase from 1.62 million in the same period last year. However, the number of unemployed individuals decreased slightly from 2.03 million in May, when the jobless rate was 3.9 percent.

Meantime, the labor force participation remained robust, with 52.42 million Filipinos aged 15 and over either working or actively seeking employment, a record high. The labor force participation rate, however, dipped slightly to 65.7 percent from 66 percent a year ago.

Employment rate, on the other hand, stood at 96.3 percent in June, down from 96.9 percent in June 2024, but a slight improvement from 96.1 percent in May. The number of employed people rose to 50.47 million from 50.28 million last year.

Underemployment, which measures those who want more work hours or better jobs, also saw a slight improvement, falling to 11.4 percent in June from 12.1 percent a year prior. Still, 5.76 million employed individuals were underemployed.

Department of Labor and Employment (DoLE) Secretary Bienvenido Laguesma attributed the month-on-month improvement to the growth in the industry sector, specifically in wholesale and retail trade, fishing and aquaculture, and construction.

He cited that the number of full-time jobs increased by 1.724 million month-on-month, while part-time employment declined by 878,000.

The services sector continues to be the largest employer, accounting for 61.4 percent of all jobs. This is followed by agriculture at 20.9 percent and industry at 17.7 percent.

During his fourth State of the Nation Address, President Ferdinand Marcos Jr. stressed the importance of decent and quality jobs as the most effective safeguard against poverty. Marcos has directed government agencies, including the DoLE, to find ways to create opportunities for the unemployed.

Laguesma said the department will strengthen its youth and adult employability and employment facilitation programs. This includes enhancing its online job portal, PhilJobNet, and expanding job fairs and employment services through the “Trabaho sa Bagong Pilipinas” initiative.

He also said the Technical Education and Skills Development Authority, an agency attached to the department, will expand its scholarship programs to ensure that every Filipino family has at least one child who completes a course to guarantee employability.