Indicates better economic conditions, local income opportunities — Recto
The Philippines’ jobless rate eased to 3.9 percent in May as 1.4 million more workers found local work, a trend Finance Secretary Ralph Recto sees as a reflection of better economic conditions and growing hope for local income opportunities among Filipino households.
The Philippine Statistics Authority (PSA) reported on Tuesday that the unemployment rate dropped to 3.9 percent in May 2025, down from 4.1 percent in both April this year and the same month in 2024.
National Statistician Claire Dennis Mapa told a press briefing in Quezon City about 2.03 million Filipinos were unemployed in May 2025—lower than the 2.06 million recorded as jobless in April and 2.11 million in May last year.
The number of unemployed Filipinos fell to 2.03 million in May, compared with 2.06 million in April and 2.11 million a year earlier.
In a separate statement, the Department of Economy, Planning and Development (DEPDev) said the Philippines’ unemployment rate compares favorably with the rates in China (5 percent) and India (5.6 percent), though it remains higher than Malaysia’s (3 percent) and Vietnam’s (2.2 percent).
Quality jobs
Palace Press Officer Claire Castro said President Ferdinand Marcos Jr. is encouraged by the improving labor market but wants to see more quality jobs created under his Bagong Pilipinas agenda.
“The Marcos administration aims to further increase the number of Filipinos with gainful employment,” Castro said in a briefing, citing job fairs and sectoral programs as key drivers of employment.
She emphasized the administration will “strive harder” to build on current momentum. “It doesn’t end here. The goal is to deliver better performance and provide more jobs to our countrymen,” she added.
Labor force participation
The PSA also reported the labor force participation rate (LFPR) rose to 65.8 percent in May—the highest since April 2005—translating to 52.32 million Filipinos aged 15 and older who were working or actively seeking work.
This compares with 64.8 percent or 50.97 million individuals in May last year and 63.7 percent or 50.74 million in April 2025.
“This is a sign that more Filipinos are seeing opportunities here in the country,” Recto said. It is proof, he said, “that our economy is improving, and that more families have income and hope.”
Economist Reinielle Matt Erece of Oikonomia Advisory & Research said the uptick in labor force participation, especially among young workers, points to better economic absorption and improving labor market conditions.
The employment rate also inched up to 96.1 percent, while the total number of employed rose to 50.29 million from 48.87 million in May 2024 and 48.67 million in April 2025.
Underemployment a challenge
However, underemployment—among those looking for more or better work—remained a challenge at 13.1 percent. That is up from 9.9 percent in May 2024 but down from 14.6 percent in April.
John Paolo Rivera, senior research fellow at the Philippine Institute for Development Studies, said the May jobs data reflect a rebound in services, retail, tourism, and transport, as well as early planting and infrastructure-related construction activity.
Still, he warned that many of the new jobs remain low-paying or unstable. “Sustaining these gains will require stronger investment, policy certainty and better job quality across sectors,” Rivera said.
