Unemployment in the country has risen sharply in July, driven by a series of typhoons that severely impacted key sectors and forced many out of work, according to the Philippine Statistics Authority (PSA)

The Philippine unemployment rate rose to 5.3 percent in July 2025, from 4.7 percent in July 2024, as four typhoons battered the country and disrupted the labor market, according to preliminary data from the PSA.

The number of jobless Filipinos climbed to 2.59 million from 2.38 million a year earlier. This rise in unemployment also pulled down the employment rate to 94.7 percent, a decrease from 95.3 percent in July 2024 and 95.9 percent in April 2025.

PSA Chief Dennis Mapa attributed the decline primarily to the severe weather disturbances.

“The sectors that are quite sensitive to weather experienced declines—such as agriculture, construction, fishing, and, in a way, retail trade. These were the areas most affected, which is likely why many chose not to participate in the labor force due to the weather conditions,” Mapa said.

The agriculture and forestry sector was hit particularly hard, losing 1.38 million jobs. Paddy rice farming accounted for a significant portion of this decline, with about 750,000 workers losing their jobs due to poor weather and low farmgate prices.

Corn farming saw a drop of 456,000 workers, while hog farming decreased by 138,000 amid the ongoing impact of African Swine Fever (ASF).

Employment in leafy and fruit-bearing vegetable farming also fell by 92,000, and the cultivation of other vegetables, tubers, and root crops declined by 172,000.

Job losses were also recorded in other key sectors, including wholesale and retail trade and repair of motor vehicles and motorcycles (-897,000), fishing and aquaculture (-173,000), construction (-147,000), and accommodation and food service activities (-69,000).

The PSA also noted that the labor force participation rate dropped to 60.7 percent (48.64 million) in July 2025, from 63.5 percent (50.06 million) a year prior. Mapa added that approximately 33,000 people directly cited bad weather as their reason for not joining the labor force.

Despite the overall negative trend, some employment expectations remained positive. The number of people who believed jobs were available rose by 120,000 year-on-year, while 164,000 individuals were still awaiting feedback on previous job applications. Mapa also highlighted that the weather disturbances not only weighed on jobs but also contributed to the rise in inflation recorded in August 2025.

In response to the PSA's report, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan underscored the need for a shift to climate-smart and modernized farming to mitigate agricultural job losses.

“The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts,” Balisacan stated. “We are also fully committed to enhancing employability, expanding labor market programs, and collaborating with key stakeholders to future-proof the Filipino workforce.”

Balisacan stressed that successful implementation of this plan hinges on attracting investments in high-value sectors, aligning training and reskilling initiatives with evolving industry needs, and promoting flexible but secure work arrangements.

He also emphasized the importance of shortening the school-to-work transition and improving opportunities for youth employment through programs like the Government Internship Program, JobStart, and the Special Program for Employment of Students.

The Marcos administration, Balisacan said, is committed to addressing job-skills mismatches and equipping the workforce for the challenges of a fast-changing economy.

(Ricardo M. Austria)