PH Job Market Steady, TPB Plan Tackles Underemployment

The Philippine labor market remained stable in March 2025, with employment and unemployment rates holding steady, but new government initiatives are ramping up to address rising underemployment and declining labor force participation.

According to the Philippine Statistics Authority (PSA), the country’s employment rate in March stayed at 96.1%, unchanged from the same period in 2024, while the unemployment rate also held at 3.9%.

The average year-to-date unemployment rate stands at 4.0%, below the government’s target range of 4.8% to 5.1% under the Philippine Development Plan (PDP) 2023–2028.

Despite this stability, the underemployment rate rose to 13.4% from 11.0% in March 2024, affecting around 6.44 million workers seeking more or better-quality work.

Labor force participation fell to 62.9% in March 2025 from 65.3% a year earlier, reflecting a contraction of 1.2 million in both the labor force and employment levels, with schooling and household responsibilities cited as key reasons.

“It is encouraging to see that our labor indicators remain steady, but our work does not stop there,” Finance Secretary Ralph G. Recto said in a statement.

“Our goal is not just stability, but continuous job growth,” Recto added, emphasizing the government’s focus on upskilling and reskilling programs to align with global standards.

By industry group, services remained the largest source of employment at 62%, followed by agriculture at 20.1% and industry at 17.9%.

Job gains were recorded in education (210,000), administrative and support services (145,000), fishing and aquaculture (138,000), arts and entertainment (91,000), and health and social work (51,000).

Wage and salary workers comprised 63.4% of the employed population, with 78.1% of them working in private establishments and 14.7% in government roles.

In response to persistent underemployment and the need for inclusive job growth, the government has launched the Trabaho Para sa Bayan (TPB) Plan, a 10-year employment master plan.

“The launch of the Trabaho Para sa Bayan Plan is both timely and essential,” said Department of Economy, Planning, and Development (DEPDev) Undersecretary Rosemarie G. Edillon.

“The latest employment figures highlight the need for a comprehensive set of interventions to increase investments, encourage technology adoption, improve job satisfaction and employment quality,” Edillon said.

The TPB Plan aims to reduce unemployment to 3% and underemployment to between 7% and 9% by 2034 through job creation, labor market transformation, and inclusive workforce development.

Key elements of the plan include lifelong learning policies, accelerated learning pathways such as micro-credentials, and stronger partnerships with the private sector to align training with industry needs.

The government is also enhancing training programs under the Digital Workforce Competitiveness Act and building international partnerships—such as with China, Germany, and Canada—to align technical vocational education and training with global benchmarks.

“We aim to create an inclusive, efficient, and dynamic labor market where Filipinos can access meaningful, quality employment,” Edillon said.

Other support measures include intensified nationwide job fairs, financial and technical aid for vulnerable workers, and emergency employment under programs like Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers(TUPAD).

Additionally, the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) allows professionals to earn degrees through competency-based assessments, supporting lifelong learning.

Edillon also pointed to the importance of flexible work arrangements and called for policy updates to support part-time and output-based employment to boost labor force participation.

The implementation of the TPB Plan coincides with the transformation of the National Economic and Development Authority into the Department of Economy, Planning, and Development, through Republic Act No. 12145, to better align national economic and labor goals.

The administration is also pushing the CREATE MORE Act to spur investments in high-impact sectors, support innovation, and accelerate technology adoption.

To ensure funding alignment, the government will apply Program Convergence Budgeting, a mechanism to link planning, programming, and budgeting more efficiently.