A drop in employment was recorded in the country in March this year, with the total number of employed individuals falling by 1.13 million to 48.02 million from 49.15 million the previous year, a decline the Philippine Statistics Authority (PSA) attributed to job losses in the government sector, influenced by the election hiring ban, and the agriculture sector.

Claire Dennis S. Mapa, PSA undersecretary and national statistician, said at a May 7 press briefing, that the biggest contributor to the decline was the agriculture and forestry sector, which shed around 609,000 jobs—483,000 of which came from rice farming, particularly in major rice-producing regions like Cagayan Valley and Western Visayas.

Also, the public administration and defense sector also recorded a decline of 394,000 jobs, partly attributed to the impact of the election ban on government hiring.

Despite this decline, the employment rate held steady at 96.1 percent, unchanged from a year ago.

Meanwhile, the labor force participation rate dropped to 62.9 percent in March, down from 65.3 percent a year earlier and 64.5 percent in February. This translates to 49.96 million Filipinos either employed or actively seeking work, down from 51.15 million in March last year and 51.09 million in the previous month.

Schooling and household responsibilities were cited as the primary reasons for individuals not actively seeking employment.

On the contrary, the unemployment rate remained at 3.9 percent in March 2025, unchanged from a year earlier, but it inched up slightly from February’s 3.8 percent.

But the number of jobless Filipinos dropped to 1.93 million during the month, slightly down from 2 million in the same month last year. It also decreased from February’s 1.94 million unemployed persons.

Notably, more Filipinos were working beyond their work hours or looking for another job to fund their personal needs.

11-month high underemployment

The first quarter ended with a surge in the underemployment rate to 13.4 percent, the highest rate in almost one year or since April 2024 when it clocked in at 14.6 percent. This figure bloated from 11 percent in the same period last year to 10.1 percent in February.

According to the PSA, this means that 6.44 million of the 48.02 million employed individuals “expressed the desire to have additional hours of work in their present job, to have an additional job, or to have a new job with longer hours of work.”

“We’ve seen that the year-on-year increase jumped by 1.05 million, largely driven by the invisible underemployed. These are individuals who work 40 hours or more per week but still seek additional work or a different job with better pay,” Maps said.

Mapa noted that the bloating underemployment was spread across various sectors. The construction industry, particularly building construction, saw the largest increase with 186,000 additional underemployed individuals.

Other sectors that contributed to the rise include wholesale and retail trade, repair of motor vehicles, and motorcycles with 130,000; public administration and defense, along with compulsory social security, which added 123,000; other service activities like household appliance repairs, domestic services, and cleaning, with 122,000; and administrative and support service activities, which saw an increase of 114,000.

Government plan

For its part, the Department of Economy, Planning, and Development (DEPDev) said in a statement released on Wednesday, May 7, that the launch of the Trabaho Para sa Bayan (TPB) plan “comes at a critical time,” pointing to the nearly one-year high underemployment rate in March.

DEPDev reported that the government is set to implement the plan, which will demonstrate the Marcos administration’s “strong commitment to improving job quality and addressing persistent labor market challenges.”

“The latest employment figures highlight the need for a comprehensive set of interventions to increase investments, encourage technology adoption, improve job satisfaction and employment quality,” said Rosemarie G. Edillon, DEPDev undersecretary for policy and planning.

Edillon stressed that the TPB Plan will serve as “our strategic roadmap toward building resilient employment, fostering competitive enterprises, and preparing a future-ready workforce.”

The TPB Plan focuses on job creation, labor market transformation, and workforce inclusion. Major elements include promoting lifelong learning and accelerated pathways, like micro-credentials, to tackle underemployment and skills gaps.

“In response to the rapidly growing demand for specialized skills, the government, through the TPB Plan, is expanding access to upskilling and reskilling opportunities for Filipino workers. These initiatives are crucial to addressing skills shortages and aligning the Philippine labor market with global workforce standards,” Edillon explained.

Edillon further said that to boost labor force participation, it is imperative to promote inclusive and flexible work arrangements, which may include revising policies to support alternative work options like part-time and output-based employment.