The country’s jobless rate eased slightly to 3.8 percent in September from 3.9 percent in August but remained higher than 3.7 percent in the same month last year, equivalent to 1.96 million unemployed Filipinos, the Philippine Statistics Authority (PSA) reported on Thursday, Nov. 6.

This translated to an employment rate of 96.2 percent—slightly lower than 96.3 percent a year ago but higher than August’s 96.1 percent. In absolute terms, the number of employed persons dropped to 49.6 million from 49.87 million in September 2024 and 50.1 million in August.

PSA data showed that the decline in unemployment was accompanied by a rise in the underemployment rate to 11.1 percent in September from 10.7 percent in August, although still lower than 11.9 percent in the same period last year.

PSA Chief Claire Dennis S. Mapa attributed the month-on-month increase in underemployment to the construction subsector—particularly the construction of buildings—as well as the manufacturing sector.

Mapa said calamities, flooding, and typhoons also affected employment, noting that weather disturbances tend to disrupt several industries. He added that the effects of the recent earthquake in Cebu may be reflected in the October data, if any impact is observed.

The year-on-year decline in employment was largely seen in the “other service activities” sector, which lost around 493,000 jobs, mostly from domestic services that fell by 573,000. Other industries contributing to the drop included administrative and support service activities (down by 356,000) and manufacturing (down by 302,000).

Mapa said employment is expected to pick up in the fourth quarter, noting that “there’s a substantial seasonality component during the fourth quarter.” He also cited a reduction of about 233,000 jobs in the transport and storage sector.

“So that’s where our substantial reduction in employed persons came from,” he said.

Mapa emphasized that, on average, the manufacturing sector recorded about 208,000 fewer jobs from January to September compared with the same period last year, possibly due to weaker exports, as most manufacturing firms produce goods for the global market. He added that the country continues to face challenges in global trade.

“What we are seeing is a reduction in the number both for the month of September and even for the average of nine months,” he added.

The PSA also reported that the labor force participation rate slipped to 64.5 percent in September from 65.2 percent in August and 65.7 percent in the same month last year.

Mapa said the decline was mainly due to more people engaged in household duties (up by 992,000), schooling (up by 253,000), and temporary illness (up by 175,000).

In a statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan said the Philippine labor market remained resilient in September, with employment levels largely stable and job quality continuing to improve despite persistent global and domestic challenges.

“Our employment indicators continue to reflect the economy’s capacity to generate stable and meaningful jobs for millions of Filipinos, even amid uncertainties and headwinds,” Balisacan said. “To build and strengthen the resilience of our labor markets, the Marcos Jr. administration will focus on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth.”

Balisacan emphasized the need to sustain education and skills development, particularly in emerging and in-demand fields such as digital literacy, green technologies, and high-value services.

He also cited the recent passage of the Lifelong Learning Development Framework Act, which establishes a system to promote continuous and accessible learning opportunities for the country’s workforce.

“Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units (LGUs), which will play a key role in promoting lifelong learning,” he added.

Balisacan likewise stressed the importance of strengthening vulnerable sectors and enhancing workforce skills to meet the growing demand in digital and artificial intelligence (AI)-driven industries. This includes promoting higher-value outsourcing segments such as information technology, creative services, and knowledge process outsourcing (KPO).

“The government continues to strengthen efforts to promote employability and lifelong learning to equip Filipino workers with the skills required by evolving and emerging industries. This will be key to ensuring that our labor force is able to adapt and thrive in an ever-shifting work environment,” he said.

(Ricardo M. Austria)