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Jean Mangaluz - Philstar.com
July 8, 2025 | 11:11am
Workers are seen constructing Marikina’s flood control projects on May 30, 2023, ahead of the rainy season.
The STAR / Walter Bollozos
MANILA, Philippines — The country’s employment rate slightly increased in May 2025, amid the Philippine election season, according to the Philippine Statistics Authority (PSA) on Tuesday, July 8.
From 95.8% in April 2025, the employment rate rose to 96.1% in May 2025. This translates to 50.29 million Filipinos being employed, up from 48.87 million in April.
Meanwhile, the unemployment rate stood at 3.9%, which means around 2.03 million Filipinos were jobless in May.
The underemployment rate, or those whose income does not suffice for them, is currently at 13.1% of the employed population. This is lower than the underemployment rate of April 2025, which was at 14.6% yet higher than the May 2024 underemployment rate, which was 9.9%.
The PSA found that people worked an average of 39.8 hours per week in May 2025.
The country’s labor force participation rate rose to 65.8% — the highest on record since January 2005.
“We welcome this development in labor force participation because it indicates a healthy and competitive Philippine labor market. Generally, a larger workforce can lead to increased economic output and potentially higher GDP growth, as more people contribute to the economy,” said Economy, Planning and Development Secretary Arsenio Balisacan in a statement.
Breakdown by sector
The PSA said that most Filipino workers are employed in the service sector, with around 61.8%. It is followed by agriculture at 21.1% and industry at 17.1%.
Wholesale and retail trade, repair of motor vehicles, agriculture and forestry and construction are the top three subsectors with the highest employment rates.
Several subsectors saw large annual increases in employment, particularly:
- Wholesale and retail trade; repair of motor vehicles and motorcycles: Up by 489,000
- Agriculture and forestry: Up by 469,000
- Administrative and support service activities: 371,000
- Accommodation and food service activities: 365,000
- Other service activities: 175,000
When put on a month-on-month basis, agriculture and forestry had the largest increase, followed by accommodation and food service activities.
PSA Undersecretary Dennis Mapa explained that the increase in retail workers was primarily in non-specialized stores. Meanwhile, workers in the agriculture sector increased due to the beginning of the harvest season.
Mapa added that the increase in administrative and support service activities was due to a rise in back office operation activities, non-voice, temporary employment agency activities and activities of employment placement agencies.
Counted under other service activities were religious and political activities. However, Mapa clarified that the increases were across sectors, not just for that subsector.
Meanwhile, the following subsectors had the highest annual decreases in workers:
- Manufacturing: Down by 374,000
- Construction: Down by 298,000
- Mining and quarrying: Down by 82,000
- Public administration and defense; compulsory social security: Down by 54,000
- Water supply; sewerage, waste management and remediation activities: 50,000
On a month-on-month basis, fishing and aquaculture had the largest drop, followed by administrative and support service activities.
The drop in manufacturing workers was primarily recorded in the manufacture of plastics and wearing apparel. Construction also dropped due to fewer engineering projects being built.
