Philippine unemployment rises as labor force expands

Unemployment rose in September as more Filipinos entered the labor force, even as employment increased and underemployment eased, according to the Philippine Statistics Authority (PSA).  

The unemployment rate increased to 5.4% in September from 3.8% a year earlier and 5.3% in August. The number of unemployed Filipinos rose to 2.86 million from  1.96 million in September 2025 and 2.77 million in the previous month. 

The labor force grew to 53.19 million in September from 51.56 million a year earlier and 52.56 million a month earlier, lifting the labor force participation rate to 64.5% from 64% in August. 

Despite the increase in joblessness, employment climbed to 50.32 million from 49.6 million a year earlier and 49.79 million in August. 

The employment rate stood at 94.6%, lower than the 96.2% recorded a year earlier and slightly below the 94.7% posted in August. 

The PSA data suggest that employment continued to grow, but not fast enough to absorb the influx of new jobseekers entering the labor market. 

Underemployment, which measures employed workers seeking additional hours of work or another job, improved during the month. 

The underemployment rate eased to 11% in September from from 11.1% a year earlier and 11.9% in August. About 5.56 million workers reported wanting additional work or longer working hours. 

Among underemployed workers, 61.4% worked fewer than 40 hours a week, while 38.6% worked 40 hours or more but still looked for additional employment or income opportunities, the PSA said. 

The service sector remained the country’s biggest employer, accounting for 62.2% of total employment. Agriculture represented 20.7%, while industry accounted for 17.1%. 

Wholesale and retail trade and repair of motor vehicles and motorcycles remained the biggest source of jobs, employing 19.9% of workers. Agriculture and forestry followed at 17.9%, while construction accounted for 9.3%. 

Accommodation and food service activities registered the largest year-on-year employment gain, adding 834,000 jobs. Transportation and storage added 254,000 jobs, while agriculture and forestry, public administration and defense, and other service activities also posted increases. 

Construction recorded the largest employment decline, shedding 271,000 jobs. Arts, entertainment and recreation lost 163,000 jobs, while information and communication, wholesale and retail trade, and professional, scientific and technical activities also posted decreases. 

On a month-on-month basis, wholesale and retail trade led job creation with an increase of 546,000 positions, followed by accommodation and food service activities, public administration and defense, manufacturing and fishing and aquaculture. 

Wage and salary workers accounted for 63% of total employment, while self-employed workers without paid employees made up 28.1%. Unpaid family workers represented 7.3% of employed persons. 

Youth participation in the labor market also increased. The labor force participation rate among Filipinos aged 15 to 24 rose to 34.1% from 31.6% a year earlier, while youth employment reached 6.23 million.  

About 715,000 young workers were underemployed, translating to an underemployment rate of 11.5%.  — Norman P. Aquino and Erika Mae P. Sinaking