Manila: The number of unemployed Filipinos declined in May this year while employment rate rose to more than 90 percent, the Philippine Statistics Authority (PSA) said.
According to Philippines News Agency, National Statistician Dennis Mapa noted in a briefing that the latest Labor Force Survey results showed an increase in the country's labor force participation rate (LFPR) to 65.8 percent in May 2025. This is an improvement from 64.8 percent in May 2024 and 63.7 percent in April 2025. The survey defines the labor force as individuals aged 15 years and over who are either employed or unemployed.
The reported LFPR in May 2025 translates to 52.32 million Filipinos aged 15 years and over in the labor force, the highest recorded since April 2005. Mapa highlighted that the number of unemployed individuals fell to 2.03 million in May from 2.11 million in the same month last year, and 2.06 million in April this year.
The unemployment rate was recorded at 3.9 percent, down from 4.1 percent in both May 2024 and the previous month. Notably, the Philippines' unemployment rate is lower than China's 5 percent and India's 5.6 percent.
The employment rate increased to 96.1 percent from 95.9 percent in May 2024 and April 2025. The number of employed persons in May 2025 rose to 50.29 million from 48.87 million in May 2024 and 48.67 million in the previous month. Industries experiencing the largest employment increases included wholesale and retail trade, agriculture and forestry, administrative and support service activities, accommodation and food service activities, and other service activities.
The underemployment rate settled at 13.1 percent, equating to 6.60 million employed individuals seeking additional work hours or new jobs with longer hours.
In a separate statement, the Department of Economy, Planning, and Development (DEPDev) emphasized the Marcos administration's commitment to creating high-quality and high-paying jobs. DEPDev highlighted that the highest recorded labor participation rate in May signifies more Filipinos joining the labor force, which indicates a healthy and competitive labor market.
Economy, Planning, and Development Secretary Arsenio Balisacan remarked that the increase in labor force participation could lead to increased economic output and potentially higher GDP growth. Balisacan noted the ongoing efforts to expand access to employment opportunities across sectors and the push for critical infrastructure projects to attract job-generating investments.
The government aims to enhance public spending efficiency and allocate resources to areas like quality education, healthcare, food security, and connectivity infrastructure. Balisacan stressed the importance of equipping Filipinos with in-demand skills and competencies to maintain a competitive workforce.
Efforts are underway to improve upskilling and reskilling initiatives through stronger industry partnerships under the Enterprise-Based Education and Training (EBET) Framework Act. The government is also implementing the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) and passing the Lifelong Learning Development Framework Bill.
Balisacan outlined additional initiatives in the Trabaho para sa Bayan Plan, which aims to attract more Global Capability Centers to the Philippines by focusing on high-value information technology and business process management (IT-BPM) services. The government is developing guidelines on the Future Workforce in an AI Workplace to integrate AI into operations while safeguarding jobs through enhanced digital literacy.
The Philippine Development Plan 2023-2028 midterm update is scheduled for release this month.
