Manila Times

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Monday, Jun 30, 2025

Philippines' Unemployment Rate Rises to 3.9% in March

Labor Force Survey reveals slight increase in joblessness and a deterioration in job quality.
The Philippines experienced a minor increase in its unemployment rate, which rose to 3.9% in March 2023, up from 3.8% in February, as reported by the Philippine Statistics Authority (PSA).

This figure remains unchanged from the same period last year.

National Statistician Dennis Mapa provided insights during a press conference, stating that the number of unemployed Filipinos decreased slightly to 1.93 million in March, from 1.94 million in February.

This number is also lower compared to two million in March 2024.

In contrast to the decrease in joblessness, the quality of jobs showed signs of decline.

The underemployment rate surged to 13.4% in March, up from 10.1% in February and 11% in March 2024. This translates to 6.44 million underemployed individuals seeking additional work hours or jobs, a significant increase from 4.96 million in February and 5.39 million in March last year.

The employment rate dipped to 96.1% in March from 96.2% in February, remaining stable year-on-year.

The number of employed Filipinos decreased to 48.02 million in March compared to 49.15 million in both the previous month and the same month last year.

March also saw notable employment fluctuations across various sectors.

The largest increases were recorded in administrative and support service activities (182,000 jobs), education (157,000), manufacturing (115,000), information and communication (100,000), and accommodation and food service activities (98,000).

Conversely, significant job losses occurred in construction (-473,000), wholesale and retail trade, including repair of motor vehicles and motorcycles (-439,000), other service activities (-290,000), fishing and aquaculture (-285,000), and public administration and defense involving compulsory social security (-158,000).

The labor force participation rate fell to 62.9% in March, a decrease from 64.5% in February and 65.3% a year prior.

Approximately 49.96 million Filipinos were part of the labor force in March, down from 51.09 million in February and 51.15 million in March 2024. Mapa identified factors such as schooling and household duties contributing to this decline in participation.

The Department of Economy, Planning and Development emphasized the urgent need for a comprehensive response to the current employment landscape.

Undersecretary Rosemarie Edillon described the recent launch of the government's Trabaho Para sa Bayan (TPB) employment masterplan as a necessary step to enhance job quality and market resilience.

The 10-year plan aims to transform the labor market, focusing on job creation, workforce development, and addressing skills mismatches.

Key initiatives under the TPB plan include promoting lifelong learning and expanding access to upskilling and reskilling opportunities to keep pace with the growing demand for specialized skills.

Edillon highlighted the importance of encouraging inclusive and flexible work arrangements to increase labor force participation and ensure that the plan translates into actionable strategies.
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