PH job market steady amid global challenges

The Philippine labor market remained broadly stable in September 2025, with key employment indicators showing resilience despite economic uncertainties at home and abroad, the Department of Economy, Planning, and Development (DEPDev) reported.

The latest Labor Force Survey from the Philippine Statistics Authority (PSA) showed the underemployment rate eased to 11.1 percent from 11.9 percent in September 2024, indicating better job quality.

The improvement was mainly driven by a reduction of 410,000 in invisibly underemployed workers, particularly in transportation and storage (down by 155,000) and administrative and support services (down by 138,000).

The unemployment rate slightly increased to 3.8 percent from 3.7 percent last year but remained lower than India and China, both at 5.2 percent, though higher than Malaysia (3.0 percent) and Vietnam (2.2 percent).

The construction sector led job creation, generating 514,000 additional jobs year-on-year.

The services sector remained the country’s largest employer, accounting for 61.3 percent of total employment.

Meanwhile, agriculture and fisheries also contributed positively, adding approximately 439,000 workers.

The labor force participation rate (LFPR) slipped to 64.5 percent from 65.7 percent the previous year.

Among youth aged 15 to 24, LFPR also declined to 31.6 percent from 33.9 percent in the same period last year.

DEPDev Secretary Arsenio M. Balisacan emphasized the need for continuous education and training aligned with emerging skill demands such as digital literacy, green technologies, and higher-value services.

“Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,” Balisacan said.

“To build and strengthen the resilience of our labor markets, the Marcos Administration will focus on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth,” he added.

He cited the recently passed Lifelong Learning Development Framework Act as a critical reform that establishes a system for continuous and accessible learning.

“Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units, which will play a key role in promoting lifelong learning,” the DEPDev Chief said.

Balisacan also highlighted efforts to upskill the workforce for digital and artificial intelligence-driven sectors, including higher-value outsourcing industries such as IT, creative, and knowledge process services.

“The government continues to strengthen efforts to promote employability and lifelong learning to equip Filipino workers with the skills required by evolving and emerging industries. This will be key to ensuring that our labor force is able to adapt and thrive in an ever-shifting work environment,” he said.

He reaffirmed the government’s commitment to the Trabaho Para sa Bayan (TPB) Plan 2025–2034, the country’s master plan for boosting employment.

“Guided by the TPB Plan, we are steering the economy toward higher-paying and more productive employment by attracting quality investments, developing a skilled and competitive workforce, and modernizing our industries,” Balisacan concluded.