Underemployment drops as government boosts job quality

The Philippine labor market showed signs of continued improvement in October 2025, as underemployment declined and indicators of job quality strengthened, according to the Department of Economy, Planning, and Development (DEPDev).

Citing the latest Labor Force Survey (LFS) released by the Philippine Statistics Authority (PSA), DEPDev reported that underemployment dropped to 12.0 percent in October 2025 from 12.6 percent in the same period last year.

The improvement was mainly due to a decrease of 176,000 visibly underemployed individuals, particularly in other service activities (-78,000) and agriculture and forestry (-68,000).

Employment quality also improved across several metrics.

There was an increase of 863,000 wage and salary workers in private establishments, 432,000 more middle- and high-skilled workers, and a rise of 564,000 full-time jobs compared to the previous year.

“October’s labor market reflects continued progress in improving the quality of work available to Filipinos,” said DEPDev Secretary Arsenio M. Balisacan.

He emphasized that the government will harness innovation and digital technologies to enhance employment services, improve labor market information systems, and deliver more responsive training programs to support the reskilling and upskilling of Filipino workers.

The labor force participation rate rose to 63.6 percent, meaning one million more individuals joined the workforce.

Total employment in October 2025 reached 48.6 million, up by 463,000 compared to the same period in 2024.

However, the unemployment rate increased to 5.0 percent from 3.9 percent in October 2024.

Despite this uptick, the full-year average unemployment rate stands at 4.7 percent, still below the Philippine Development Plan (PDP) 2023–2028 target and lower than in regional peers such as China and India.

To build on these gains, Balisacan said sustained improvements in job quality and long-term labor market resilience depend on the full implementation of the Trabaho Para sa Bayan Plan 2025–2034 and the PDP 2023–2028.

“Guided by these plans, the government will boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services,” he said.

Balisacan added that the government will also capitalize on landmark policies such as the Tatak Pinoy Strategy, institutionalized by the Tatak Pinoy Act, which identifies high-potential sectors for value-added production, export growth, and employment generation.