QUICK LOOK | May unemployment rate eases to 3.9%, underemployment up

The Philippine labor market showed modest improvements in May 2025, with the unemployment rate easing to 3.9 percent, down from 4.1 percent in both May 2024 and April 2025. This corresponds to 2.03 million jobless individuals, fewer than the 2.11 million recorded a year earlier.

Meanwhile, the employment rate reached 96.1 percent, up from 95.9 percent in the same period last year. The number of employed persons grew to 50.29 million, from 48.87 million in May 2024 and 48.67 million in April 2025. 

However, despite these positive gains, underemployment—a measure of job quality—remained elevated at 13.1 percent, representing 6.60 million workers seeking longer hours or additional jobs.

Key highlights of Philippine Statistics Authority’s May 2025 Labor Force Survey

Unemployment

  • Fell to 3.9 percent in May 2025 (from 4.1 percent in May 2024 and April 2025).

  • Number of unemployed: 2.03 million (vs 2.11 million in May 2024 and 2.06 million in April 2025).

 Employment

  • Rose to 96.1 percent, higher than 95.9 percent in the same month last year and the previous month.

  • The number of employed individuals reached 50.29 million.

 Labor force participation

  • Labor Force Participation Rate (LFPR): 65.8 percent — highest since April 2005.

  • Total labor force: 52.32 million Filipinos aged 15 and over.

 Sectoral employment distribution

  • The services sector led with 61.8 percent of total employed.

  • Agriculture with 21.1 percent 

  • Industry with  17.1 percent. 

Sub-sectors with highest annual employment gains

  • Retail and vehicle repair: +489,000

  • Agriculture and forestry: +469,000

  • Admin/support services: +371,000

  • Accommodation and food: +365,000

  • Other services: +175,000

Sub-sectors with largest annual declines

  • Manufacturing: -374,000

  • Construction: -298,000

  • Mining and quarrying: -82,000

  • Public administration: -54,000

  • Waste management: -50,000

 Underemployment

  • Slightly improved month-on-month (13.1 percent in May vs 14.6 percent in April 2025) but still worse than 9.9 percent in May 2024.

  • 6.60 million underemployed:

    • 59.2 percent worked less than 40 hours/week (visibly underemployed)

    • 40.8 percent worked 40 hours or more/week (invisibly underemployed)

—Ed: Corrie S. Narisma

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