The employment rate in the Philippines increased to 96.3 percent in June 2025, up from 96.1 percent the previous month, driven by a rise in hiring within the services sector. Data released by the Philippine Statistics Authority (PSA) on Wednesday indicated that approximately 50.47 million Filipinos were employed in June, an increase from 50.29 million in May.
Of those employed, around 61.4 percent were in the services sector, followed by 20.9 percent in agriculture and 17.7 percent in the industry sector. In comparison, the employment rate in June 2024 stood at 96.9 percent.
The underemployment rate also showed improvement, decreasing to 11.4 percent in June from 13.1 percent in May and 12.1 percent a year earlier. The unemployment rate fell to 3.7 percent in June, down from 3.9 percent the previous month, although it was higher than the 3.1 percent recorded in the same month last year.
The labor force participation rate was reported at 65.7 percent in June, slightly lower than the 66 percent from the previous year and the 65.8 percent from May.
Quality Jobs
Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan commented on the decline in both the underemployment and unemployment rates. “These gains reflect the impact of our sustained efforts to improve the overall business climate and create high-quality jobs,” he stated.
However, Balisacan expressed caution regarding the slight uptick in unemployment, particularly among the youth. “To address this, we are committed to enhancing workforce competitiveness by aligning education and training systems with industry needs and accelerating interventions to improve school-to-work transitions and youth employability,” he added.
Government Measures
DEPDev also highlighted reforms aimed at improving workforce development, including the Enterprise-Based Education and Training (EBET) Framework Act, the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP), and the proposed Lifelong Learning Development Framework Bill.
Additional government initiatives to ensure employment for working-aged Filipinos include the Special Program for the Employment of Students, the Government Internship Program, the JobStart Philippines Program, and strengthened partnerships with local governments’ Public Employment Service Offices (PESOs) and school-based Job Placement Offices.
“These strategic efforts are part of the Trabaho Para sa Bayan Plan, our long-term blueprint for generating inclusive and high-quality employment. Through a nationwide roadshow, we are working closely with local governments, industry partners, and training institutions to ensure the effective implementation of key reforms,” Balisacan concluded.