Unemployment rate drops to 3.9% in August

The Philippines’ unemployment rate eased to 3.9 percent in August 2025, equivalent to 2.03 million jobless Filipinos, down from 4.0 percent a year ago and 5.3 percent in July, according to the Philippine Statistics Authority (PSA).

The latest Labor Force Survey published by the PSA on Wednesday, 8 October 2025 shows improving labor conditions as 52.13 million Filipinos aged 15 and over joined the workforce — marking a labor force participation rate (LFPR) of 65.1 percent, up from 64.8 percent in August 2024 and 60.7 percent in July 2025.

The employment rate likewise improved to 96.1 percent, translating to 50.10 million employed persons compared with 49.15 million in the same period last year. Gains were driven by employment growth in construction, fishing and aquaculture, and administrative support services, offsetting declines in retail trade, public administration, and education.

By sector, services accounted for 61.5 percent of total employment, followed by agriculture (20.4 percent) and industry (18.1 percent). The construction subsector added 540,000 jobs, while agriculture and forestry gained 300,000.

Meanwhile, underemployment — the share of workers seeking more work hours — fell to 10.7 percent from 11.2 percent last year and 14.8 percent in July, reflecting modest improvements in job quality. On average, employed Filipinos worked 41 hours per week, slightly higher than the 40.7 hours a year ago.

Youth employment also showed resilience, with 88.3 percent of Filipinos aged 15–24 employed, up from 88.0 percent last year. However, 678,000 youth workers remained underemployed, representing 11.5 percent of the group.

The labor market continues to recover amid broader economic growth. Sustained expansion in construction, services, and agriculture underscores steady business activity, though wage and productivity gains remain critical to long-term labor stability.