Manila: The Department of Labor and Employment (DOLE) recently reported an increase in the number of new entrants to the labor force, despite a concurrent rise in unemployment rates. Labor Secretary Bienvenido Laguesma highlighted that the number of new entrants rose from 1.25 million in July 2024 to 1.7 million in July 2025, based on the latest Labor Force Survey by the Philippine Statistics Authority (PSA).
According to Philippines News Agency, Laguesma stated that the increase in new labor force entrants demonstrates a robust labor supply and ongoing confidence in the labor market. He noted that employment opportunities are expanding in various sectors, including administrative services, transportation, human health, manufacturing, and education. However, the increase in unemployment is attributed to recent natural disasters that impacted significant parts of the country.
The decline in employment rates is linked to multiple tropical cyclones and an enhanced southwest monsoon, which led to widespread flooding, landslides, infrastructure damage, and operational delays, especially in northern Luzon provinces like Ilocos, La Union, and Pangasinan. These events reportedly affected over 200,000 families, causing work and class suspensions and halting business operations in agriculture, construction, fishing, and retail sectors.
Laguesma pointed out that these disruptions resulted in temporary job losses, reduced working hours, and an increase in the underemployment rate to 14.8 percent. Many individuals opted out of the labor force due to safety concerns and inaccessible workplaces. The agriculture and informal sectors, employing a large portion of the workforce, are particularly susceptible to such weather-related shocks.
Despite some resilience in the data, the disruptions have led to a notable increase in unemployment. The PSA's July 2025 Labor Force Survey results reflect a demographic shift with a surge in young, well-educated individuals eager to contribute to national progress. However, there is also a rise in the number of educated unemployed individuals, from 1.057 million in July 2024 to 1.122 million in July 2025.
While the July 2025 LFS results present challenges, the DOLE views them as instructive and a call for more focused and aggressive actions. The department aims to enhance its programs, particularly those facilitating a smoother school-to-work transition for young graduates and new labor force entrants.
