MANILA — The country’s unemployment rate rose to 5.3 percent in July 2025, higher than the 4.7 percent recorded in July 2024 and 4.1 percent in April 2025, the Philippine Statistics Authority (PSA) reported.

This translates to 2.59 million unemployed Filipinos, up from 2.38 million a year ago and 2.06 million in April 2025.

The labor force participation rate (LFPR) also fell to 60.7 percent from 63.5 percent in July 2024, with 48.64 million Filipinos aged 15 and over in the labor force, down from 50.06 million in July 2024. The employment rate dropped to 94.7 percent, leaving 46.05 million employed persons.

The services sector accounted for the largest share of employment at 62.8 percent, followed by industry (18.7%) and agriculture (18.5%). By sub-sector, wholesale and retail trade; repair of motor vehicles and motorcycles (19.2%), agriculture and forestry (16%), and construction (10%) had the highest employment. Sub-sectors with the largest annual employment declines included agriculture and forestry (-1.38 million), wholesale and retail trade (-897 thousand), and construction (-147 thousand).

Wage and salary workers made up 68.7 percent of employed persons, with the majority in private establishments (53.9% of total employed). Cordillera Administrative Region posted the highest employment rate at 96.6 percent, while Bicol Region had the lowest at 92.3 percent. Eight regions recorded unemployment above the national average.

Average weekly hours worked increased to 42.0 hours, yet underemployment rose to 14.8 percent, affecting 6.80 million workers. Among youth aged 15 to 24, LFPR fell to 29.5 percent, underemployment rose to 13.7 percent, and NEET (not in education, employment, or training) climbed to 15.9 percent.