Philippine Labor Force Hits Record 52.3M in May 2025

The Philippine labor market reached a milestone in May 2025 as labor force participation rose to a record 65.8 percent, with 1.4 million more Filipinos entering the workforce, according to the Philippine Statistics Authority (PSA).

This brings the total number of labor force participants—those aged 15 and older—to an all-time high of 52.33 million, up from 64.8 percent in the same period last year.

The country’s unemployment rate fell to 3.9 percent in May, outperforming the government’s full-year target of 4.8 to 5.1 percent, and remaining lower than China’s 5.0 percent and India’s 5.6 percent.

Finance Secretary Ralph G. Recto emphasized the significance of the data in improving quality of life for Filipino households.

“Ang ibig sabihin po ng lahat ng numerong ito ay patuloy na dumarami ang mga Pilipinong may maayos at disenteng trabaho,” Recto said.

“Ang pagtaas ng LFPR ay senyales na mas maraming Pilipino ang nakakakita ng oportunidad dito sa bansa,” he added.

Economy, Planning, and Development Secretary Arsenio M. Balisacan said the expanded labor force reflects growing economic confidence.

“Generally, a larger workforce can lead to increased economic output and potentially higher GDP growth,” Balisacan said.

He also noted that key policy reforms and infrastructure projects are designed to address labor market gaps and support inclusive growth.

Despite the gains, underemployment climbed to 13.1 percent in May, up from 9.9 percent a year ago, due to part-time workers seeking additional hours and variable schedules.

More workers also reported holidays as a reason for working fewer than 40 hours per week.

Youth labor participation increased to 33.6 percent among those aged 15 to 24, signaling improved school-to-work transitions.

Wage and salary workers continued to dominate the employed population at 62.8 percent, of whom 77.1 percent were employed in private establishments.

Managerial employment also rose sharply to 1.92 million in May—up by 245,000 month-on-month and 514,000 year-on-year.

Employment growth was driven by wholesale and retail trade (489,000), agriculture and forestry (469,000), administrative services (371,000), accommodation and food service (365,000), and other services (175,000).

To sustain employment growth, the government is implementing programs like the Trabaho para sa Bayan Plan, which promotes upskilling, reskilling, and lifelong learning.

“We will leverage recently enacted policy reforms to improve upskilling and reskilling initiatives,” Balisacan said.

These include the Enterprise-Based Education and Training (EBET) Framework Act, Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP), and the Lifelong Learning Development Framework Bill.

The government is also developing AI workplace guidelines to ensure workers remain competitive in digital environments and are equipped with AI-related competencies.

To attract more Global Capability Centers (GCCs), the administration is focusing on digital literacy, generative AI training, and strengthening the country’s IT-BPM capabilities.

Returning Overseas Filipino Workers (OFWs) are being reintegrated through the National Reintegration Network (NRN), which offers job referrals, health services, crisis support, and skills training.

To support workers affected by labor violations, DOLE launched the LIFE Assistance Program, offering TESDA training, scholarships, and livelihood grants.

In high-growth industries, the Semiconductor and Electronics Industry Advisory Council (SEIAC) is enhancing talent development through intensive training in IC design, assembly, and packaging.

The Philippine Development Plan 2023–2028 midterm update, due this month, will recalibrate strategies for job creation and inclusive growth amid global uncertainties.