Philippine Jobless Rate Rises Sharply to 5.3% in July

Photo courtesy of PhilStar

In a worrying turn for the Philippine economy, unemployment surged to 5.3% in July 2025, jumping from 3.7% recorded in June. This latest report from the Philippine Statistics Authority (PSA) reveals that approximately 2.59 million Filipinos were left jobless as of July.

The employment rate saw a decline as well, falling to 94.7% in July from 96.3% the previous month. This decrease translates to about 46.05 million people currently employed across the nation.

Adding to the concern is the rise in underemployment—those working but in need of additional income—which climbed from 12.1% to 14.6%. This equates to 6.80 million employed individuals seeking more hours, another job, or a better-paying job.

The landscape of employment in the Philippines is dominated by wage and salary workers, making up 68.7% of the workforce. Self-employment accounts for 24.7%, unpaid family workers comprise 4.0%, and employers operating within family businesses make up 2.6%.

The service sector remains the largest employer, encompassing 62.8% of all employed persons. This is followed by industry at 18.7% and agriculture at 18.5%.

Some sectors have reported notable increases in employment over the past year. Administrative and support service activities added 296,000 jobs, while transportation and storage saw an increase of 208,000 jobs. The health and social work sector employed an additional 169,000 people, manufacturing grew by 109,000, and education saw a rise of 96,000 positions.

Conversely, several key sectors experienced significant reductions. Agriculture and forestry suffered the most, losing 1.38 million workers. This was followed by wholesale and retail trade, including the repair of motor vehicles and motorcycles, which shed 897,000 jobs. Meanwhile, fishing and aquaculture lost 173,000 employees, construction saw a reduction of 147,000, and the accommodation and food service sector declined by 69,000 workers.

These dramatic shifts underscore the challenges facing the Philippine labour market as it grapples with various economic pressures. The service industry’s resilience offers some solace, yet the declines in agriculture and retail highlight vulnerabilities that need urgent addressing.

In the broader economic spectrum, these unemployment figures might have far-reaching implications. For instance, they could influence domestic consumption patterns and impact household spending, potentially leading to economic slowdown if the trend continues.

The government, businesses, and communities now face the pivotal task of addressing these challenges. Developing strategies to invigorate sectors that have recently declined, alongside supporting the potentially burgeoning areas, will be essential in stabilising and growing the employment landscape.

With the current unemployment figures translated to around 98.5 billion THB, the economic strain is palpable. Moving forward, policymakers and stakeholders must work cohesively towards crafting solutions that offer durable and sustainable employment, ensuring that the workforce is equipped to thrive in a constantly evolving global economy.

As the situation continues to unfold, keeping a close eye on subsequent employment reports and government initiatives will be crucial for predicting the trajectory of the Philippine economy and labour market in the coming months.

  Adapted by ASEAN Now from PhilStar 2025-09-10