The number of unemployed Filipinos rose to 2.16 million in January 2025, as the usual end-of-holiday job cuts pushed up the country’s unemployment rate, according to the Philippine Statistics Authority (PSA).
From 1.63 million in December 2024, the figure jumped as the seasonal demand for workers during the holidays faded. This brought the unemployment rate to 4.3% in January, higher than the previous month’s 3.1%.
Deputy National Statistician and PSA Assistant Secretary Divina Gracia del Prado explained that the drop in employment follows a familiar pattern. “The trend was, always every December, number of employed shoots up and then come January it goes down… because the [seasonal] demand for workers was lessened,” she said in a GMA News Online report.
The labor force in January counted 50.65 million people actively seeking work, but only 48.49 million were employed—a decrease from the 50.19 million recorded the month before. This lowered the employment rate from 96.9% in December to 95.7% in January.
The services sector remained the largest source of jobs, accounting for 61.6% of total employed Filipinos. Agriculture followed with 21.1%, while industry made up 17.2%.
Job losses were notable in manufacturing, which shed 209,000 positions, as well as in professional and technical activities, arts and entertainment, construction, and information sectors. Meanwhile, gains were recorded in agriculture, retail, accommodation and food services, transportation, and administrative support.
Underemployment, or those wanting more work or hours, also remained high at 13.3%, affecting 6.47 million workers.
Despite the rise in unemployment, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan said the government is focused on long-term solutions.
“Our strategy remains clear: to sustain job creation by fostering a dynamic and investment-friendly economy while preparing our workforce for high-growth and emerging industries that offer high-quality, well-paying jobs,” Balisacan said.
He added that ongoing efforts like reskilling workers for industries such as IT-BPM and streamlining investment policies are part of the plan to create more stable employment opportunities moving forward.
