QUICK LOOK: PH unemployment rate dipped to 4.3% in Jan 2025 amid labor gains

The unemployment rate in the Philippines declined to 4.3 percent in January 2025, down from 4.5 percent in January 2024, according to the latest labor force survey released by the Philippine Statistics Authority.

Key reasons for the January 2025 unemployment rate:

• Higher labor force participation (63.9 percent) – More Filipinos are seeking jobs.
• Decline in manufacturing Jobs – Sector lost 209,000 workers year-on-year.
• Regional disparities – Bicol had the highest joblessness rate at 6.5 percent.
• Reduced weekly work hours – Average hours dropped to 40.4 from 42.2.
• Underemployment remains high (13.3 percent) – Many seek additional income sources.

The number of unemployed individuals remained at 2.16 million, unchanged from a year ago, the agency said on Thursday, Mar. 6, 2025.

Employment in the country improved, with 48.49 million people employed in January 2025, an increase from 45.90 million in January 2024. The employment rate stood at 95.7 percent, slightly higher than the 95.5 percent recorded a year prior.

Labor force participation rose to 63.9 percent, reflecting a growing number of Filipinos entering the job market. The underemployment rate—indicating those seeking additional work—dropped to 13.3 percent, down from 13.7 percent a year earlier.

The services sector remained the largest employer, accounting for 61.6 percent of total employment, followed by agriculture (21.1 percent) and industry (17.2 percent). 

Regionally, Bicol Region (Region V) had the highest unemployment rate (6.5 percent), while Zamboanga Peninsula (Region IX) had the lowest (2.3 percent).