4.4% unemployment reflects slower growth

The Philippines’ unemployment rate was recorded at 4.4 percent in November 2025, the Philippine Statistics Authority (PSA) reported on Wednesday.

While the figure marked an improvement from October’s 5.0 percent, it represented a sharp increase from the 3.2 percent in November 2024.

In a press release, the PSA reported that the total number of unemployed Filipinos reached 2.25 million in November 2025 — up from 1.66 million in the same month last year, but down from 2.54 million in October.

The PSA defines the labor force as individuals aged 15 years and over who are either employed or unemployed. The labor force participation rate (LFPR) in November was recorded at 64.0 percent, lower than the 64.6 percent in November 2024, but higher than the 63.6 percent in October 2025.

The LFPR translates to 51.52 million Filipinos in the labor force in November, up from 51.20 million a year earlier and 51.16 million in October.

The number of employed persons in November reached 49.26 million, compared with 49.54 million in November 2024 and 48.62 million in October 2025. Most employed Filipinos were in the services sector, which accounted for 62.1 percent of the total employment.

The services sector also recorded the largest month-on-month employment gains, with other service activities adding 621,000 jobs. In contrast, agriculture and forestry shed 517,000 workers over the same period.

Unemployment is a key macroeconomic indicator closely linked to inflation, economic growth, and household consumption.

Economist William Phillips theorized an inverse relationship between inflation and unemployment, commonly illustrated by the Phillips Curve.

Recent data suggest this dynamic may be at play. The economy expanded by 5.7 percent in 2024, but growth slowed sharply to 4.6 percent in 2025, according to Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr.

The slowdown, widely attributed to the erosion of investor confidence following the flood control corruption scandal, has coincided with weaker consumer demand.

This was reflected in the BSP’s latest consumer confidence survey, which showed broad pessimism in the fourth quarter of 2025. Inflation, often a barometer of demand, also eased significantly. The PSA reported that 2025 inflation averaged 1.7 percent, marking a seven-year low and falling well below 2024’s 3.2 percent, largely driven by slower increases in food prices.

Against this backdrop, the year-on-year rise in unemployment — from 3.2 percent to 4.4 percent — underscored the broader economic slowdown triggered by the flood control scandal.

Both BSP Governor Remolona and Department of Economy, Planning, and Development Secretary Arsenio Balisacan have expressed optimism that the economy will recover by mid-2026.

Balisacan has emphasized inclusive growth as the cornerstone of recovery.

“[Focusing] on health, self-protection, and jobs creation, that will tremendously improve inclusivity. And if you can improve inclusivity, you can have faster poverty reduction even without substantially raising growth,” he said.