Unemployment rate climbs to 4.2 percent in 2025

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

February 7, 2026 | 12:00am

2.26 million jobless Filipinos in December

MANILA, Philippines — The Philippines ended 2025 with a higher unemployment rate, even as underemployment remained unchanged, according to the Philippine Statistics Authority (PSA).

National Statistician Dennis Mapa said in a press conference yesterday that the average unemployment rate climbed to 4.2 percent last year from 3.8 percent in 2024.

In December alone, the country’s unemployment rate held steady at 4.4 percent from the previous month, but went up compared to the 3.1 percent registered in the same month in 2024.

This translated to 2.26 million jobless Filipinos in December 2025, up from 2.25 million in the previous month and 1.63 million in December 2024.

Mapa attributed the higher unemployment level in December to the reduction in jobs in the construction sector after flood control corruption issues unraveled last year.

“Public construction expenditure decreased in the fourth quarter. In fact, it decreased even more compared to the third quarter. So it is reflected here that because the disbursement in public construction decreased, only a few were hired,” he said.

Mapa said the employment rate declined to 95.8 percent in 2025 from 96.2 percent in 2024.

This is equivalent to an average of 49.01 million employed Filipinos in 2025, up from 48.84 million in 2024.

While the country saw an additional 172,000 Filipinos employed last year, Mapa said this figure was the lowest in the last three years.

In December, the employment rate remained at 95.6 percent compared to the previous month, but decreased from the 96.9 percent recorded in the same month last year.

In terms of levels, the number of employed Filipinos in December last year was at 49.43 million, up slightly from 49.26 million in November 2025, but down from the 50.19 million employed in December 2024.

Mapa said the underemployment rate – a key measure of job quality – was unchanged at 11.9 percent last year compared to 2024.

He said the underemployment rate of eight percent in December last year is the lowest since April 2005 when the current measure of labor market performance was adopted.

This is also lower than the 10.4 percent underemployment rate in November last year and 10.9 percent in December 2024.

In terms of magnitude, 3.93 million Filipinos were underemployed or looking for additional job or work hours in December last year, down from 5.11 million in the previous month and 5.48 million in December 2024.

Given the latest data, the Department of Economy, Planning and Development (DEPDev) said the government would continue its work to improve the labor market environment for the creation of quality jobs.

“As we make 2026 a rally point to revitalize PDP (Philippine Development Plan) implementation, we will prioritize employment creation by restoring consumer and business confidence, reduce the cost of doing business, encourage innovation and expand training and reskilling opportunities,” DEPDev Undersecretary Rosemarie Edillon said.

As the construction sector shed jobs, she said the government would resume and accelerate the completion of delayed infrastructure projects.

She said the government is also promoting upskilling for Filipino workers to remain competitive.

“We will continue to work closely with Congress to institute reforms to make our labor market environment (firms, workforce, future jobseekers, training institutions, regulators) dynamic and responsive to the evolving world of work,” Edillon said.

In addition, the government will facilitate the adoption of digital technologies to strengthen the capacity of high-productivity sectors, including the information technology business process management and advanced manufacturing sectors to ensure sustainable job growth.

“If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” Edillon said.

The government will also continue to implement strategies under its job generation masterplan and workforce development plan.