The Philippine labor market continued to show signs of resilience as unemployment dipped in May 2025, with more Filipinos finding jobs across key sectors and subsectors.
According to the Philippine Statistics Authority (PSA), the country’s unemployment rate fell to 3.9% in May—equivalent to 2.03 million unemployed individuals—from 4.1% (2.06 million) in April 2025 and the same period last year.
Lower Unemployment, Higher Participation
PSA Undersecretary Claire Dennis Mapa said in a briefing that 39 out of every 1,000 Filipinos in the labor force were unemployed in May. The improvement in employment levels brought the employment rate up to 96.1%, translating to 50.29 million employed Filipinos.
The number of Filipinos in the labor force also grew, with 52.32 million individuals aged 15 and above actively participating—up from 50.74 million in April and 50.97 million in May 2024. The labor force participation rate climbed to 65.8% of the total population, with 1.4 million new entrants recorded.
RELATED: [Employment Rate in the Philippines Sees Positive Growth in April]
Sectors & Jobs Driving Growth
Employment gains were highest in the services sector (61.8%), followed by agriculture (21.1%) and industry (17.1%).
Top subsectors with the largest job increases:
- * Wholesale/retail trade and vehicle repair: +489,000
- * Agriculture and forestry: +469,000
- * Administrative and support services: +371,000
- * Accommodation and food services: +365,000
- * Other service activities: +175,000
In terms of job classification:
- * Wage and salary workers: 62.8%
- * Self-employed (no paid employee): 27.9%
- * Family business employers: 1.8%
Underemployment and Hours Worked
- * Average weekly hours worked: 39.8 hours (down from 39.9 in April and 40.6 in May 2024)
- * Underemployed Filipinos: 6.60 million or 13.1% (down from 14.6% in April)
- * Youth underemployment: 11.5% (improved from 13.4% in April, but higher than 10.2% in May 2024)
- * Worked only 1 hour in May: 91,000 individuals (0.18% of employed population)
RELATED: [July Sees Spike In Unemployment Rates]
Government Welcomes Progress
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan welcomed the improvements in participation and employment:
“A larger workforce can lead to increased economic output and potentially higher GDP growth, as more people contribute to the economy,” he said.
The PSA’s Labor Force Survey was conducted from May 8 to 28, sampling 11,083 households nationwide.
