Malacañang on Wednesday clarified discrepancies in reported unemployment and underemployment figures, citing a mix of economic and environmental factors that contributed to softer labor market conditions in 2025.

Presidential Communications Undersecretary and Palace Press Officer Claire Castro said the figures she earlier cited were based on year-on-year data presented during a meeting of the Economic Development Council, stressing that she merely relayed the information provided to her.

Despite continued employment generation efforts by the Department of Labor and Employment and other government agencies, Castro said unemployment and underemployment rose in 2025 due to several factors.

Citing Economic Development Council data, she said the unemployment rate from January to November 2025 stood at 4.2 percent, up from 3.8 percent in the same period in 2024.

Underemployment likewise increased to 12.3 percent from 11.9 percent year on year, pointing to weaker labor market conditions.

Castro attributed the rise to weather-related disruptions, sector-specific job losses, and increased labor force participation that temporarily outpaced the economy’s ability to generate sufficient employment.

She said typhoons and adverse weather events in the latter half of 2025 disrupted economic activity, shortened operating hours, and forced temporary business closures in several areas.

The sectors most affected included accommodation and food service, wholesale and retail trade, manufacturing, agriculture, and fishing — industries vulnerable to demand fluctuations, supply chain disruptions, and climate-related shocks.

“According to the report: Underemployment while improving toward the latter part of 2025 remained a concern as a significant share of workers were absorbed in part-time, seasonal or informal jobs reflecting job quality issues and skills mismatches,” Castro said.

“The sectors hardest hit were largely those most exposed to demand fluctuations and mobility disruptions like accommodation and food service activities, and wholesale and retail trade, and faced weaker demand conditions, supply chain disruptions, and climate-related shocks and other activities like manufacturing and agriculture and fishing,” she added.

Addressing concerns over the contraction of the construction sector and tourism slowdowns in some areas, Castro said the administration remains focused on sustaining economic growth and job creation.

“The President’s directive is clear: to continue strengthening the economy, generate more jobs, and intensify tourism efforts in the country,” she said, adding that agencies have been instructed to implement measures aligned with these goals.