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By Adrian H. Halili, Journalist
THE PHILIPPINES’ joblessness rate dipped to 3.9% in May from 4.1% in April, with the count of individuals in the workforce reaching a record peak, the government disclosed on Tuesday.
The tally of unemployed Filipinos fell to 2.03 million in May from 2.06 million in April and 2.11 million a year prior, based on the findings of the Philippine Statistics Authority’s (PSA) recent Labor Force Survey unveiled on Tuesday.
On a yearly basis, the unemployment rate also decreased from 4.1% in May 2024.
The nation’s joblessness rate averaged at 4% during the initial five months of 2025, unchanged from the corresponding timeframe the previous year.
National Statistician Claire Dennis S. Mapa attributed the decline in the May joblessness rate to a “significant” rise in the number of Filipinos aged 15 years and older in the workforce.
“The growth in our labor force participation is notable — there was a 1.35 million increase year on year,” he stated at a press briefing. “Typically, when labor force participation rises, unemployment also escalates. However, this instance is different — almost everyone was absorbed, resulting in a decrease in joblessness.”
“Our only worry is that underemployment has increased (year on year),” he continued. “Our underemployment rate last year was only 9.9%, which rose by 1.79 million to 13.1%. Those who entered the labor market, although they were employed, were not all full-time employees, which also contributed to the underemployment rate.”
PSA data revealed that 52.32 million Filipinos were part of the labor force in May, up from 50.74 million in April and the 50.97 million working Filipinos noted in May 2024.
This was the highest reported count since April 2005, when the PSA began monitoring the data.
The labor force participation rate (LFPR), or the fraction of the working-age populace (15 years old and above) that is involved in the labor force, rose to 65.8% in May from 63.7% in April and 64.8% in the same month last year.
Concurrently, the underemployment rate — those desiring more working hours or an additional job — diminished to 13.1% in May from 14.6% in April but increased from 9.9% in the same month last year.
This equated to 6.6 million Filipinos seeking extra jobs or longer working hours, 489,000 fewer than the 7.09 million in April. Compared to the previous year, this rose from 4.82 million in May 2024.
For the five-month duration, the underemployment rate averaged 12.9%, up from 12.3% last year.
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan remarked that the rise in labor force participation in May indicated a “robust and competitive” job market.
“Generally, a larger workforce can lead to heightened economic output and potentially faster GDP (gross domestic product) growth, as more individuals contribute to the economy,” Mr. Balisacan stated in a release.
“This also signifies growing confidence in the labor market and the effects of ongoing initiatives aimed at expanding access to employment prospects across sectors,” he added.
The Philippines is aiming for a GDP growth of 5.5%-6.5% in 2025.
DEPDev noted that the country’s unemployment rate remains lower than that of China (5%) and India (5.6%), but higher than Malaysia (3%) and Vietnam (2.2%).
Finance Secretary Ralph G. Recto stated in a release that increased labor participation signifies that more Filipinos are perceiving improved job opportunities and is a marker of economic advancement.
Mr. Balisacan expressed that the government’s planned infrastructure initiatives could aid in attracting job-creating investments.
He emphasized that efforts to equip Filipinos with sought-after skills and competencies can help our workforce stay adaptable amid a competitive labor market.
“We will utilize recently enacted policy reforms to enhance upskilling and reskilling initiatives.”
EMPLOYMENT RATE
The PSA additionally disclosed that the employment rate edged up to 96.1% in May from 95.9% in both April 2025 and May 2024.
The number of Filipinos in jobs increased to 50.29 million in May from 48.67 million in the previous month and 48.87 million in the same month last year.
By sector, services remained the primary employer for the month, representing 61.8% of total employed persons, followed by agriculture (21.1%) and the industrial sector (17.1%).
Wholesale and retail trade; repair of motor vehicles and motorcycles experienced the most significant annual job increase during the month, adding 489,000 positions. This was succeeded by agriculture and forestry (469,000), administrative and support service activities (371,000), accommodation and food service activities (365,000), and other service activities (175,000).
Conversely, manufacturing marked the largest annual drop in employment (374,000), trailed by construction (298,000); mining and quarrying (82,000); public administration, defense, and social security (54,000); and water supply and waste management activities (50,000).
By worker classification, wage and salary workers constituted 62.8% of the workforce in May, followed by self-employed individuals without paid employees (27.9%), unpaid family workers (7.5%), and employers in family-run farms or businesses (1.8%).
Working hours averaged 39.8 hours weekly in May, slightly down from the 39.9 hours in April. Average working hours also decreased year on year from the 40.6 hours per week recorded in May 2024.
INFLATION WOES
Nevertheless, analysts indicated that the rise in labor participation observed in May was likely a consequence of inflation anxieties.
“Elevated inflation, uncertainties, and inadequate job opportunities compelled individuals, including those who were initially part of the labor force, to contribute more to the family’s financial resources. Having just a single earner in the household is no longer sufficient — not even two earners,” Maria Ella Calaor-Oplas, an economics professor specializing in human capital development research at De La Salle University, expressed in a Facebook Messenger discussion.
She added that the midterm elections likely stimulated employment opportunities.
“The LFPR is plausibly rising because household incomes are exceedingly low, and prices of necessities are exorbitant, compelling more family members to actively pursue work,” IBON Foundation Executive Director Jose Enrique “Sonny” A. Africa similarly stated in a Viber message. “Unpacking this seemingly positive rise highlights that more Filipinos are attempting to make a living from whatever informal and low-quality jobs they can find in an economy that is failing to create stable and adequately compensated work.”
Mr. Africa emphasized that the government should concentrate on developing the agriculture and industrial sectors to enhance employment.
Federation of Free Workers President Jose Sonny G. Matula also asserted that the government should focus on domestically-driven job creation by supporting small enterprises and rural cooperatives, as well as improving wages, given the year-on-year rise in underemployment indicates that many jobs in the country are “still low-paying or unstable.”
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