Jobless Filipinos increased in number to 1.94 million in February 2025 from 1.8 million last year, as the job market struggled to absorb over 40 percent of new job seekers.

According to the Philippine Statistics Authority (PSA), the February 2025 figure reflects an increased annual unemployment rate at 3.8 percent from 3.5 percent in February 2024.

Claire Dennis S. Mapa, PSA undersecretary and national statistician, said at an April 8 press briefing that while 345,000 Filipinos joined the labor force, not all of them secured employment.

“Not all of them were absorbed into the labor market,” Mapa noted, explaining that out of the new job seekers in February, “around 204,000 found employment, while 141,000 remained unemployed.”

“This increase in job seekers who weren’t hired contributed to the rise in the unemployment rate. More people participated, but not all were absorbed,” the national statistician stressed.

Agriculture and forestry posted the largest annual job losses, shedding almost one million (949,000) jobs. This was followed by administrative and support services (201,000), and transportation and storage (158,000).

This corresponds to the country’s employment rate, which declined to 96.2 percent in February from last year’s 96.5 percent.

By number, Filipinos who secured jobs only increased to 49.2 million in February from 49 million in the same month last year and 48.5 million in January 2025.

Month-on-month, the jobless rate in February declined from January, which posted a total of 2.16 million jobless Filipinos. This was equivalent to a seven-month high of 4.3 percent unemployment rate.

Services remained the largest source of employment in February 2025, making up for nearly 62 percent of total employed Filipinos. Agriculture followed with over 20 percent, while industry made up over 18 percent.

Mapa explained that the increase in employment under the sub-sector of ‘other service activities’ was due to the upcoming May 12 midterm elections.

“There was a notable increase in employment under activities of political organizations. These are likely individuals who were hired or employed by political groups, which added around 41,000 jobs,” Mapa said.

Having the largest gains, accommodation and food service activities added nearly 380,000 new jobs. It was followed by fishing and aquaculture (365,000), public administration and defense (330,000), construction (258,000), and other service activities (232,000).

Lower underemployment

Meanwhile, the Marcos administration stressed that the underemployment rate dropped to 10.1 percent in February from 12.4 percent a year earlier, which could imply that fewer workers were looking for additional jobs or longer work hours.

In a statement released Tuesday, April 8, the National Economic and Development Authority (NEDA) said that employment quality improved year-on-year, with 1.7 million more Filipinos in full-time jobs.

Likewise, 1.1 million more were engaged in middle- and high-skilled occupations, and 151,000 added to wage and salaried employment.

Mapa noted that job gains were highest in managerial and sales positions. Of the 499,000 additional managers, around 162,000 were restaurant managers—reflecting the growth in the accommodation and food service sector.

NEDA said the national government reaffirmed its commitment to “improving the quality of job opportunities available to Filipino workers.”

Arsenio M. Balisacan, national socioeconomic planner, said that “the government aims to swiftly pursue initiatives and fast-track the implementation of projects generating high-quality jobs.”

“We will build on our momentum and intensify our efforts to secure strategic job-generating investments, promote a dynamic and innovative business environment, and diversify growth drivers,” Balisacan said.

“The continued rollout and implementation of high-impact infrastructure flagship projects, particularly in energy, transport, and digital connectivity, will boost domestic employment and business activity,” he added.