The country’s unemployment rate climbed to 5.3 percent in July from 4.1 percent in April and 4.7 percent in July last year, as labor force participation dropped, the Philippine Statistics Authority (PSA) reported on Wednesday.
In absolute terms, the number of jobless Filipinos rose to 2.59 million, compared with 2.06 million in April and 2.38 million in the year-earlier period, the PSA said.
PSA data also showed the labor force participation rate (LFPR) in the period under review slipped to 60.7 percent from 63.7 percent in April 2025 and 63.5 percent in July 2024.
National Statistician Claire Dennis Mapa said this translates to 48.64 million Filipinos aged 15 and older either employed or actively seeking work. The comparable figures were 50.74 million in April 2025 and 50.06 million in July 2024.
Strengthen the job base
John Paul Rivera, research fellow at the Philippine Institute for Development Studies, saw the numbers highlighting the need to strengthen the country’s job base.
“It’s a reminder that gains in job quantity do not always translate into job quality or stability,” Rivera said, noting weaker demand in export-oriented industries and slower domestic investment.
“We need to attract investments that can provide quality jobs. To attract them, good governance, low corruption, and sound macroeconomic fundamentals must be present,” he said.
Mapa, the statistician, attributed the fall in participation partly to inclement weather in July, which dampened hiring in construction, agriculture and retail trade.
Employment in rice and corn farming, hog raising, and retail fell sharply, with retail alone losing nearly 900,000 jobs.
The 5.3 percent unemployment rate was the highest since August 2022, PSA data showed. Underemployment rose to 14.8 percent, or 6.8 million workers seeking more hours, while youth unemployment reached 18.1 percent, equivalent to 1.08 million.
Improve workforce agility
The Department of Economy, Planning and Development (DEPDev) said the softer labor market “must intensify efforts to enhance climate resilience and improve workforce agility.”
DEPDev Secretary Arsenio Balisacan stressed that the government is targeting higher productivity in agriculture through climate-smart practices, rural infrastructure and digital connectivity.
He said the administration is accelerating the Trabaho Para sa Bayan Plan, the country’s first 10-year labor market masterplan, which focuses on enabling investments in high-value sectors and aligning training with emerging industry demands.
“The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts,” Balisacan said.
He added that reducing the school-to-work transition and expanding youth programs such as the Government Internship Program, JobStart, and the Special Program for Employment of Students are crucial.
“The Marcos administration remains focused on addressing job-skills mismatch and preparing the workforce for the demands of a rapidly evolving economic environment,” he said.
