In March 2025, the Philippine labor market demonstrated continued strength and resilience, with key employment metrics indicating stability.

The country's employment rate was reported at 96.1%, consistent with the same figure recorded in March 2024, reflecting sustained job creation efforts.

The unemployment rate remained low at 3.9%, unchanged from the previous year, bringing the year-to-date average unemployment rate to 4.0%.

This figure is below the government's target range of 4.8% to 5.1% set forth in the Philippine Development Plan (PDP) for 2023–2028.

The underemployment rate also remained relatively low at 13.4%, a sign of improving job quality across various sectors.

Finance Secretary Ralph G. Recto highlighted the importance of maintaining the momentum in job growth, emphasizing the government's commitment to meet the escalating demand for specialized skills.

Recto stated that initiatives aimed at expanding upskilling and reskilling opportunities are vital for aligning the labor market with global standards, thereby fostering a future-ready workforce.

The services sector continued to dominate employment, accounting for 62.0% of the total workforce, followed by agriculture at 20.1% and industry at 17.9%.

Job growth in March was particularly noted in several subsectors, including education, which added 210,000 jobs; administrative and support service activities, with an increase of 145,000 jobs; fishing and aquaculture, contributing 138,000 jobs; arts, entertainment, and recreation, which saw 91,000 new jobs; and human health and social work activities, with 51,000 jobs added.

Wage and salary workers represented 63.4% of the total employed, with the majority (78.1%) working in private establishments, while government employment accounted for 14.7%.

To further enhance the labor market landscape, the Philippine government has initiated the Trabaho Para sa Bayan (TPB) Plan, a ten-year strategic employment blueprint aimed at reducing unemployment to 3% and underemployment to between 7% and 9% by 2034. The TPB Plan sets forth a long-term framework for job creation, labor market transformation, and inclusive workforce development, highlighting the involvement of the private sector in strengthening educational curricula, training delivery, and job placement initiatives.

The government has also executed various sectoral interventions to improve employment conditions.

The Department of Labor and Employment (DOLE) and the Department of Social Welfare and Development (DSWD) have ramped up nationwide job fairs and support services focused on vulnerable groups.

Additional targeted interventions, such as financial assistance and technical support, aim to ensure that low-income workers receive the necessary help.

Programs like JobStart and emergency employment initiatives under the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program are also being implemented.

To address future workforce needs, DOLE and the Technical Education and Skills Development Authority (TESDA) are enhancing training programs in sectors with high demand for skills.

This is facilitated by the Digital Workforce Competitiveness Act and various international partnerships, including those with institutions in China, Germany, and Canada, to align the Philippines' technical vocational education and training (TVET) with international standards and explore developments in fields like nuclear energy.

The government continues to pursue investments in critical priority sectors, foster innovation, and accelerate technology adoption through the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act.