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Manila Bulletin devider Business devider The Economy devider Unemployment rate holds at 4.4% with 2.26 million jobless in Dec.

Unemployment rate holds at 4.4% with 2.26 million jobless in Dec.

Full-year 2025 jobless rate higher at 4.2%; December underemployment rate lowest on record

Published Feb 6, 2026 09:09 am  |  Updated Feb 6, 2026 01:15 pm

The country’s unemployment rate held steady at 4.4 percent in December 2025 from the previous month, but underlying labor market data pointed to emerging softness as the number of jobless Filipinos continued to rise.

The latest preliminary data from the Philippine Statistics Authority (PSA) released Friday, Feb. 6, showed that around 2.26 million Filipinos were unemployed in December, up sharply from 1.63 million during the same month in 2024 and slightly higher than the 2.25 million recorded in November.

The increase came alongside a labor force participation rate of 64.4 percent, translating to about 51.69 million Filipinos aged 15 and above who were either employed or actively seeking work.

The employment rate settled at 95.6 percent for the month, down from 96.9 percent in December 2024, while the underemployment rate fell to a single-digit eight percent in December—the lowest on record, National Statistician Claire Dennis S. Mapa noted at a press briefing. The last time that underemployment reached a single-digit rate was in May 2024, when it stood at 9.9 percent.
For full-year 2025, the employment rate slipped to 95.8 percent from 96.2 percent in 2024, while the unemployment rate rose to 4.2 percent from 3.8 percent. Underemployment held steady at 11.9 percent, the same level recorded in 2024.

Mapa attributed the year-on-year increase in unemployment primarily to the construction sector, which reportedly shed 550,000 jobs.

He noted that weak growth in construction—particularly public construction—was the main driver of the rise in unemployment. The sector further declined in the fourth quarter of 2025 compared with the third quarter.

Reductions in employment were also observed in transportation and storage (258,000), fishing and aquaculture (258,000), and manufacturing (255,000), but Mapa emphasized that construction accounted for the largest impact.

While employment grew by around 172,000 in 2025 compared with 2024, Mapa said this was the lowest annual increase in the past three years, excluding the pandemic years.

He noted that employment had risen by 1.29 million in 2023 compared with 2022 and by 664,000 in 2024 compared with 2023, highlighting a clear downward trend.

The slowdown was largely due to the construction sector contributing fewer workers compared with previous years, as reduced public construction activity translated into lower employment.

Despite the downtrend in construction, Mapa cited gains in other industries. The top three contributors to employment growth in 2025 were administrative and support service activities, which added 148,000 jobs; accommodation and food service activities, which added 143,000; and fishing and aquaculture, which added 109,000.

The Department of Economy, Planning, and Development (DEPDev) said in a statement that the government remains committed to improving the labor market and creating quality jobs amid global and domestic challenges.

“As we make 2026 a rally point to revitalize PDP implementation, we will prioritize employment creation by restoring consumer and business confidence, reducing the cost of doing business, encouraging innovation, and expanding training and reskilling opportunities,” said DEPDev Undersecretary and officer-in-charge Rosemarie G. Edillon, referring to the Philippine Development Plan 2023-2028, which serves as the Marcos Jr. administration’s socioeconomic blueprint.

She added that the government plans to resume and fast-track delayed infrastructure projects while prioritizing high-impact programs and initiatives in key sectors.

The government will also promote the adoption of digital technologies to boost high-productivity sectors such as information technology-business process management (IT-BPM) and advanced manufacturing, while continuing to pursue supply-side measures to support an inclusive, efficient, and dynamic labor market.

“If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” Edillon said.

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