The unemployment rate in the Philippines dropped to 3.7% in June 2025, equivalent to approximately 1.95 million Filipinos out of work. This is lower than the 3.9% in May, but still higher than the 3.1% in June 2024.
Underemployment also dropped to 11.4% or 5.76 million Filipinos, lower than 13.1% in May and 12.1% last year. Underemployed are people who want to work more hours or earn extra income.
The retail and fishing industry led the way in job creation. There was an increase of 375,000 jobs in wholesale and retail trade and 512,000 jobs in fishing and aquaculture. But the construction industry lost 692,000 jobs and the agriculture sector lost 424,000 jobs. Meanwhile, the manufacturing sector, especially the semiconductor industry, lost 114,000 jobs as production slowed.
The arts and entertainment sector also lost jobs, with 209,000 jobs lost in gambling due to the proposed ban on online gambling. In addition, the number of unpaid workers increased by 200,000, mostly in wholesale, retail, and fishing where family members often help out.
According to the Department of Economy, Planning, and Development, there are good signs of job recovery but the quality of jobs and opportunities for youth need to be improved. The government plans to strengthen the semiconductor industry, AI integration, and infrastructure projects to create more jobs and a more inclusive economy.
