The Department of Finance (DOF) welcomed the February unemployment rate recently reported by the Philippine Statistics Authority (PSA), which declined to 5.1 percent from 5.8 percent in January, as a sign of improving labor market conditions.
“This is positive news as it shows the government’s ongoing commitment to generate quality jobs that uplift Filipinos and support the growth of the economy,” said Finance Secretary Frederick Go.
In absolute terms, the number of unemployed Filipinos fell to around 2.66 million to 2.7 million, down from nearly 3 million in January, while total employment rose to about 49.43 million, translating to a 94.9 percent employment rate.
However, despite the month-on-month improvement, labor market conditions remain weaker compared to a year ago. The unemployment rate was significantly higher than the 3.8 percent recorded in February last year, while the number of jobless Filipinos exceeded the 1.94 million posted a year earlier.
PSA data also showed that the labor force expanded to 52.09 million as more Filipinos entered the job market. However, not all were absorbed into employment—of nearly 1 million new entrants, only about 271,000 secured jobs, leaving hundreds of thousands still unemployed.
Underemployment, or those seeking additional work, declined to 5.8 million (11.8 percent) from 6.3 million in January, but remained higher than year-ago levels, indicating ongoing challenges in job quality and income stability.
The services sector continued to dominate employment with a 63.5 percent share, followed by agriculture (18.8 percent) and industry (17.7 percent).
Analysts noted that while the easing unemployment rate reflects a gradual recovery, the higher year-on-year figures highlight structural pressures in the labor market that could weigh on job creation in the coming months, including faster labor force growth and external risks such as geopolitical tensions in the Middle East.
The DOF said the government is providing free skills training to some 8,000 repatriated overseas Filipino workers (OFWs) from the Middle East, while also preparing 200,000 overseas job opportunities, along with job matching, livelihood, and financial assistance programs to support Filipinos amid heightened economic uncertainty.
“These efforts show that our government is not only tracking employment numbers but also ensuring that Filipinos and their families feel the real impact of these programs,” Go said.