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By Chloe Mari A. Hufana, Reporter
THE PHILIPPINES’ jobless rate climbed to a three-year peak of 5.3% in July as a succession of typhoons and monsoon downpours hindered employment efforts, the statistics agency reported on Wednesday.
The number of unemployed Filipinos rose to 2.59 million in July from 2.38 million a year earlier and 1.95 million in June, initial data from the Philippine Statistics Authority’s (PSA) labor force survey indicated.
The 5.3% unemployment rate marked the highest point in three years or since it was 6% in June 2022, reflecting the consequences of the pandemic lockdowns. It also equaled the unemployment rate recorded in August 2022.
The July rate also surpassed the 4.7% recorded in the same month of 2024 and the 3.7% in June 2025.
On average, the unemployment rate for 2025 thus far stands at 4.1%, slightly higher compared to the 4% during the same period last year.
National Statistician Claire Dennis S. Mapa noted that the unemployment rate surged in July due to the effect of four typhoons and the southwest monsoon on the agriculture sector.
The Philippines faces more tropical storms than any other region globally, averaging around 20 annually. Typhoon activity peaks from July to October, when nearly 70% of all storms occur, according to the nation’s official weather bureau.
The agricultural sector (skilled agricultural, forestry, and fishery workers) experienced a loss of 974,000 jobs year-on-year. In terms of key industries, the agriculture and forestry sectors together lost 1.38 million positions.
“The agricultural sector is key to the rise in unemployment due to the adverse weather conditions and multiple tropical disturbances last July. I cannot foresee if this is a solitary incident as there are still forecasts of weather disruptions this year,” Labor Secretary Bienvenido E. Laguesma stated to BusinessWorld via Viber.
The agricultural subsectors that notably contributed to the year-on-year job decline were the cultivation of paddy rice (-750,000) and corn (-456,000), Mr. Mapa mentioned.
“We’ve noticed this trend since January — there has been a genuine decline in employment within the rice sector. There are possibly several influences affecting this, including the weather and some say it’s due to the low farmgate price of palay,” he observed in Filipino during a press briefing. “For corn production, there was also a reduction of 456,000. In hog farming, we saw a drop of 133,000, again due to some provinces being impacted by ASF (African Swine Fever).”
“We are witnessing that certain subsectors are heavily impacted by the weather. In July, we faced four typhoons, which affected a significant number of provinces and had repercussions on our labor market,” Mr. Mapa added.
In another statement, the Department of Economy, Planning, and Development (DEPDev) called for intensified efforts to enhance climate resilience and workforce mobility.
DEPDev Secretary Arsenio M. Balisacan advocated for modern agricultural practices, climate-smart strategies, rural infrastructure, and digital connectivity to mitigate the impacts of severe weather on employment.
“The recent employment statistics highlight the critical need to modernize our economic sectors to face disruptions, whether due to climate change or technological shifts. We are also fully dedicated to enhancing employability, broadening labor market programs, and collaborating with key partners to future-proof the Filipino workforce,” Mr. Balisacan stated.
Assistant Professor Benjamin B. Velasco from the University of the Philippines School of Labor and Industrial Relations observed that job losses in agriculture stemming from climate-related issues could persist in the upcoming months.
“Undoubtedly, the job attrition in agriculture was a consequence of climate change, which regrettably will not be an isolated event, but [will] likely worsen until the end of [the] rainy season, which now extends to November,” he conveyed via Facebook Messenger.
“The long-term trend is for employment in agriculture to decline and paid jobs in rural areas to increase due to [the] effects of trade liberalization as well as commercialization and industrialization, though limited and sporadic,” he added.
Meanwhile, the wholesale and retail trade, repair of motor vehicles and motorcycles sector lost 897,000 workers in July compared to the same month last year, while fishing and aquaculture saw a decrease of 173,000.
Mr. Mapa stated that agricultural workers who lost their jobs due to severe weather moved to the construction sector.
Despite the rise in the unemployment rate in July, he expressed hope that employment will rebound as the holiday season approaches, as shown in historical patterns.
Mr. Laguesma also remarked, “the forthcoming holiday season will lead to [a] higher employment rate.”
UNDEREMPLOYMENT RATE RISES
Meanwhile, PSA data also revealed that the underemployment rate climbed to 14.8% in July from 12.1% in the same month a year ago and 11.4% in June.
The number of underemployed Filipinos — those seeking longer work hours or additional employment — reached 6.8 million in July, exceeding the 5.77 million recorded a year prior.
For the initial seven months, the average underemployment rate was recorded at 12.9%, higher than the previous year’s 12.2% during the same period.
The labor force participation rate also dropped to 60.7% in July from 63.5% a year earlier. Mr. Mapa similarly attributed this decline to the adverse weather in July, identifying the agriculture, construction, and manufacturing sectors as the areas with the largest declines.
Approximately 94.7% or 46.05 million Filipinos were employed in July, down from 95.3% or 47.68 million the previous year.
For the seven months ending in July, the employment rate averaged 95.9%, lower than last year’s 96%.
Meanwhile, by worker categorization, wage and salary earners comprised the majority of employed individuals at 68.7% in July. This was followed by the self-employed without paid employees at 24.7%, unpaid family workers at 3.9%, and employers in their own familial farms or businesses at 2.6%.
Among wage and salary earners, those in private establishments continued to hold the largest portion at 78.5%, translating to 53.9% of the overall employed population. Employees working in government or government-controlled corporations represented 14.4% of wage and salary workers, or 9.9% of the total employed populace.
Regionally, the Cordillera Administrative Region recorded the highest employment rate in July at 96.6%, while the Bicol Region (Region V) noted the lowest at 92.3%.
Eight regions displayed unemployment rates surpassing the national average of 5.3%, led by the Bicol Region at 7.7%, followed by Region IV-A (Calabarzon) at 6.6% and Region VII (Central Visayas) at 6.1%.
Labor organizations indicated that the increase in unemployment emphasizes the necessity for a legislated wage increase to bolster the purchasing power of workers.
“The rise in unemployment is concerning, and the increase in underemployment informs us that even individuals with jobs are not earning sufficiently to live decently,” Federation of Free Workers President Jose Sonny G. Matula mentioned in a message to BusinessWorld via Viber.
He stated that the latest numbers reflect the deteriorating jobs and wages crisis in the nation, exacerbated by inflation, the ongoing prevalence of precarious work, and the scarcity of sustainable and quality employment opportunities.
The Sentro ng Mga Nagkakaisa at Progresibong Manggagawa articulated in a separate statement that the data indicate that the government’s job creation initiatives are insufficient.
“The reality is clear: millions of Filipinos remain trapped in insecure, low-quality, and poorly paid work,” it asserted.
“While other nations advance in manufacturing, industry, and innovation, the Philippines remains ensnared in informality and uncertainty — a failure partially attributed to our administration… Each month these employment statistics remain unchanged signifies yet another month where millions of Filipinos are condemned to poverty and indignity.”
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