More Filipinos were looking for extra work or longer hours in March even as the country’s official unemployment rate edged slightly lower, the Philippine Statistics Authority reported Wednesday.
Underemployment rose to 12.3 percent last month from 11.8 percent in February, with approximately 6.03 million employed workers saying they needed more hours or additional jobs to supplement their earnings — up from 5.84 million the previous month. The figure points to persistent income pressures on Filipino households despite a headline improvement in joblessness.
The unemployment rate fell to 5 percent in March from 5.1 percent in February, equivalent to 2.58 million out-of-work Filipinos, down from 2.66 million. The employment rate edged up marginally to 95 percent from 94.9 percent.
The improvement, however, partly reflects a shrinking labor force rather than a straightforward expansion of jobs. Total labor force participation declined to 51.65 million, or 63.3 percent of the working-age population, from 52.09 million, or 63.8 percent, in February. Employed Filipinos by headcount also fell to 49.07 million from 49.43 million.
On an annual basis, the numbers tell a less encouraging story. Unemployment in March 2025 stood at 3.9 percent, or 1.93 million jobless Filipinos — meaning the current 5 percent rate represents a significant year-on-year deterioration of more than a full percentage point and over 600,000 additional jobless workers compared to the same period last year.
The PSA data was released amid ongoing concerns over the impact of Middle East hostilities on overseas Filipino workers, a key source of dollar remittances that help sustain household consumption and domestic employment.
