Philippine unemployment rate drops to 3.9% in August 2025

The number of jobless Filipinos fell sharply in August 2025, pushing the country’s unemployment rate down to 3.9%, according to data released by the Philippine Statistics Authority (PSA) on Wednesday, October 8.

PSA Chief Claire Dennis Mapa reported that only 2.03 million Filipinos aged 15 and above were unemployed in August, a significant decline from 2.59 million in July 2025—reflecting about 560,000 fewer individuals without jobs. This figure was also lower than the 2.07 million recorded in August 2024.

The employment rate improved to 96.1%, up from 94.7% in July and 96.0% in the same period last year. This translates to 50.10 million employed Filipinos, marking an increase from 49.15 million a year ago and 46.05 million just a month prior.

Meanwhile, underemployment—representing those who want longer hours or additional work—fell to 10.7% in August 2025, down from 14.8% in July. This accounts for 5.38 million workers seeking more stable or extended employment opportunities.

Mapa noted that the services sector continued to lead the labor market, employing 61.5% of the workforce, followed by agriculture at 20.4% and industry at 18.1%. Among sub-sectors, the largest employment gains were seen in construction (+540,000), fishing and aquaculture (+448,000), and administrative and support services (+307,000).

Despite overall job growth, some sectors saw employment losses, particularly in human health and social work (-105,000), mining and quarrying (-103,000), and professional and technical activities (-102,000).

Wage and salary workers comprised 64.4% of all employed persons, with the majority working in private establishments (78%) and a smaller portion in government (14.1%). Self-employed individuals accounted for 27%, unpaid family workers made up 7%, and business owners employing others represented 1.6%.

The labor force participation rate—covering both employed and unemployed Filipinos aged 15 and older—rose to 65.1%, equivalent to 52.13 million people, up from 60.7% in July and 64.8% a year ago.