The country’s unemployment rate climbed to a three-month high of five percent in October, representing about 2.54 million jobless Filipinos, up from 3.8 percent in the previous month and 3.9 percent a year earlier, the Philippine Statistics Authority (PSA) reported on Wednesday, Dec. 10.

This translated to a lower employment rate of 95 percent, or 48.62 million employed Filipinos, down from 96.2 percent in September and 96.1 percent in the same month last year.

October’s jobless rate was the highest since July’s 5.3 percent, when the number of unemployed reached a higher 2.59 million.

Compared to a year ago, the number of jobless persons at the start of the fourth quarter was higher than the 1.97 million in October 2024.

PSA data also showed that the underemployment rate rose to 12 percent, or about 5.81 million Filipinos, up from 11.1 percent in the previous month but slightly lower than last year’s 12.6 percent.

PSA Chief Claire Dennis S. Mapa said the rise in the underemployment rate was partly driven by the higher labor force participation rate (LFPR), which reached 63.6 percent in October, or about 51.16 million Filipinos, up from 63.3 percent a year earlier, though lower than September’s 64.5 percent. This meant that more Filipinos sought jobs in October, amid the Christmas holiday season.

By region, PSA data showed that Bangsamoro Autonomous Region in Muslim Mindanao (BARMM) had the highest LFPR in October at 69.3 percent, while Eastern Visayas recorded the lowest at 59.4 percent.

Mapa said that typhoons and earthquakes during the period affected the figures “partly,” although there were positive signs. He noted that employment in the agricultural sector increased compared to last July.

“There’s an increase in agriculture and forestry of about 1.84 million [employed persons] quarter-on-quarter and the biggest contributor to this growth was the cultivation of paddy rice,” he said, noting that the peak season of rice farming in the fourth quarter added 414,000 employed persons, corn farming contributed an additional 278,000 employed persons, and hog farming added 217,000 employed persons.

Mapa added that in the last quarter, wholesale and retail trade also boosted employment, contributing an additional 880,000 jobs, with 774,000 coming from retail sales in non-specialized stores selling food, beverages, and tobacco.

He noted that accommodation and food service activities also contributed to the quarter-on-quarter rise in employment, adding 195,000 jobs, with restaurants and mobile food service activities accounting for 171,000 additional employed persons.

PSA data also showed that among the regions, Cavite, Laguna, Batangas, Rizal, and Quezon (CALABARZON) recorded the highest unemployment rate in October at 6.4 percent, while South Cotabato, Cotabato, Sultan Kudarat, Sarangani, and the independent city of General Santos (SOCCSKSARGEN) posted the lowest at 3.2 percent. This translated to the highest employment rate in SOCCSKSARGEN at 96.8 percent and the lowest in CALABARZON at 93.6 percent.

In terms of underemployment by region, PSA data showed that SOCCSKSARGEN recorded the highest rate at 24.5 percent, while Davao Region posted the lowest at 3.9 percent.

“October’s labor market reflects continued progress in improving the quality of work available to Filipinos,” said Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio M. Balisacan in a statement, referring to the higher LFPR.

“Innovation and digital technologies will be harnessed to enhance employment services, integrate labor market information for better industry-skills matching, and expand skills training programs to support the reskilling and upskilling of Filipino workers,” he added.

Balisacan said the increase in LFPR to 63.6 percent compared to a year ago indicates that one million individuals have joined the workforce. He noted that “total employment reached 48.6 million in October, up by 463,000 from last year.”

“Meanwhile, unemployment rose to five percent from 3.9 percent in October 2024. Despite this increase, the full-year unemployment rate of 4.7 percent remains better than the Philippine Development Plan’s (PDP) target for the year and lower than regional peers like China and India,” the DEPDev chief added.

To sustain job quality and strengthen long-term labor market resilience, the country’s chief economist emphasized that accelerating quality employment depends on the full implementation of the Trabaho Para sa Bayan (TPB) Plan 2025-2034 and the PDP 2023-2028, which serves as the Marcos Jr. administration’s medium-term socioeconomic blueprint.

“Guided by these plans, the government will boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services,” Balisacan said.

“Alongside these efforts, the government will leverage landmark policies to attract investments and create jobs. The Tatak Pinoy Strategy, the country’s first national industrial policy as institutionalized by the Tatak Pinoy Act, identifies priority sectors with strong potential for value-added production, export growth, and employment generation,” he added.

(Ricardo M. Austria)