The Philippines’ unemployment rate slightly rose in February mostly because of a rise in young Filipinos entering the job market, the Philippine Statistics Authority (PSA) said Tuesday.
Data from the Philippine Statistics Authority (PSA) showed that the unemployment rate went up to 3.8 percent in February from 3.5 percent in the same month last year, but improved from the target range of 4.8 to 5.1 percent for 2025.
It also declined from 4.3% percent in January 2025.
The PSA said that in terms of magnitude, the total number of unemployed individuals in February 2025 reached 1.94 million, higher than 1.80 million a year ago.
Finance Secretary Ralph Recto said the robust labor market in February 2025 stronger domestic demand ahead, which bodes well for shielding the Philippine economy from global uncertainties and brewing trade wars.
The Philippine labor force participation rate (LFPR) increased to 64.5 percent in February from 63.9 percent in the previous month.
The underemployment rate also declined to 10.1 percent from 13.3 percent in January 2025 as more workers were engaged in full-time employment and middle- and high-skilled occupations. Almost two-thirds of the workforce were wage and salary workers, indicating a growing and expanding middle class.
“This is a very encouraging development. A strong and growing workforce means rising incomes, greater spending power, and sustained job creation. This fuels consumer demand and pushes our economy forward,” Recto said.
“We must continue to boost domestic demand, especially in these uncertain times marked by brewing trade wars. A strong and resilient domestic market is our best defense,” he said.
NEDA said the country’s unemployment rate remains comparable to Asian economies including Malaysia (3.1 percent) and Vietnam (2.2 percent), and lower than China (5.4 percent) and India (6.4 percent).
The quality of employment continued to improve year-on-year, with more workers engaged in full-time employment (+1.7 million), middle- and high-skilled occupations (+1.1 million), and remunerative wage and salaried work (+151,000).
NEDA Secretary Arsenio Balisacan said that the government aims to swiftly pursue initiatives and fast-track the implementation of projects generating high-quality jobs.
“We will build on our momentum and intensify our efforts to secure strategic job-generating investments, promote a dynamic and innovative business environment, and diversify growth drivers. The continued rollout and implementation of high-impact infrastructure flagship projects, particularly in energy, transport, and digital connectivity, will boost domestic employment and business activity,” he said.
