The Philippine labor market showed mixed signals in September 2025 as the country's workforce participation rate experienced a slight contraction, according to the latest data from the Philippine Statistics Authority (PSA).
Labor Force Participation Trends Downward
The PSA report revealed that the labor force participation rate (LFPR) settled at 64.9 percent in September 2025, marking a slight decrease from the 65.2 percent recorded in the same month last year. This translates to approximately 50.63 million Filipinos aged 15 and above who were either employed or actively seeking employment.
Unemployment Shows Improvement
Despite the dip in participation, the unemployment picture showed positive movement. The unemployment rate improved to 4.0 percent in September 2025, down from 4.2 percent in September 2024. This represents approximately 2.02 million Filipinos who were without work but actively looking for employment during the reference period.
Underemployment Emerges as Concern
While unemployment decreased, underemployment presented a contrasting trend. The underemployment rate—which measures employed persons expressing desire for additional hours of work or better employment opportunities—rose to 12.5 percent in September 2025. This marks an increase from the 11.7 percent rate recorded in the same period last year.
Key Employment Statistics at a Glance
- Labor Force Participation Rate: 64.9% (down from 65.2% in September 2024)
- Unemployment Rate: 4.0% (improved from 4.2%)
- Underemployment Rate: 12.5% (increased from 11.7%)
- Total Employed Persons: Approximately 48.61 million
What This Means for the Philippine Economy
The latest employment data presents a complex picture of the Philippine labor market. The slight decline in labor force participation could indicate various factors, including individuals pursuing further education, facing discouragement in job hunting, or dealing with family responsibilities.
The improvement in unemployment rates suggests that job creation efforts are bearing fruit, but the rising underemployment figures highlight ongoing challenges in job quality and adequate working hours for many Filipinos.
Economists and policymakers will be closely monitoring these trends as they develop strategies to boost both the quantity and quality of employment opportunities across the archipelago.
