The Philippine labor market showed mixed signals in November 2025, as the national unemployment rate rose compared to the previous year but eased from the month before, according to the latest official figures.
Key Statistics: A Year-on-Year Increase
Data released by the Philippine Statistics Authority (PSA) on Wednesday, January 7, 2026, revealed that the unemployment rate reached 4.4 percent in November 2025. This marks a significant increase from the 3.2 percent rate recorded in the same month of 2024.
In raw numbers, this translated to approximately 2.25 million Filipinos without work in November 2025. This figure is sharply higher than the 1.66 million unemployed individuals counted in November 2024.
However, a month-on-month comparison offers a glimmer of improvement. The jobless rate in October 2025 was higher at five percent, equating to 2.54 million unemployed. This means unemployment decreased by nearly 300,000 people from October to November.
Labor Force Dynamics and Sectoral Shifts
The overall labor force—comprising people aged 15 and over who are either employed or actively seeking work—expanded to 51.52 million in November 2025. This was higher than both the year-earlier and October 2025 levels. The labor force participation rate settled at 64 percent.
Total employment was recorded at 49.26 million, resulting in an employment rate of 95.6 percent. While this is lower than the 96.8 percent rate from November 2024, it improved from 95 percent in October 2025.
Analysts point out that the annual rise in unemployment suggests job creation has not matched the growth in the labor force. The pain was unevenly distributed across industries.
Sectors with the largest annual job losses included:
- Accommodation and food service activities
- Wholesale and retail trade
- Manufacturing
This pattern indicates continued softness in tourism-related services and goods-producing industries.
On a positive note, several sectors added jobs, demonstrating areas of resilience and growth:
- Public administration
- Education
- Construction
- Information and communication
This trend highlights ongoing hiring linked to government services, infrastructure projects, and digital economy roles.
Underemployment and Youth Participation
A spot of good news came from the underemployment front. The underemployment rate, which measures employed persons seeking more hours or additional work, declined to 10.4 percent in November 2025 from 10.8 percent a year earlier and 12 percent in October. This represents about 5.11 million Filipinos.
Conversely, the data highlighted a worrying trend for younger workers. The labor force participation rate for the youth aged 15 to 24 weakened to 88.3 percent from 90.6 percent a year earlier. This drop underscores the persistent challenges faced by new entrants and younger Filipinos in securing a stable foothold in the job market.
The November 2025 jobs report paints a picture of a Philippine economy in a nuanced recovery. While some monthly improvements are evident, the year-on-year comparison reveals underlying weaknesses in key consumer and industrial sectors, calling for targeted policy support to foster more robust and inclusive job growth.
