MANILA — The country’s unemployment rate rose slightly to 3.8 percent in September 2025, up from 3.7 percent in the same month last year, the Philippine Statistics Authority (PSA) reported.

In terms of magnitude, the number of unemployed Filipinos increased to 1.96 million from 1.89 million in September 2024, though lower than the 2.03 million recorded in August 2025.

Meanwhile, the employment rate in September stood at 96.2 percent, a marginal decline from 96.3 percent in the same period last year. The total number of employed persons decreased to 49.60 million from 49.87 million in September 2024.

The services sector continued to account for the largest share of employment at 61.3 percent, followed by agriculture (20.9 percent) and industry (17.8 percent). By subsector, wholesale and retail trade, including repair of motor vehicles and motorcycles, remained the top employer (20.6 percent), followed by agriculture and forestry (17.9 percent), and construction (10 percent).

The top five subsectors with the biggest year-on-year employment gains were construction (514,000), fishing and aquaculture (313,000), accommodation and food service activities (307,000), human health and social work activities (183,000), and agriculture and forestry (126,000).

On the other hand, notable declines were seen in other service activities (-493,000), administrative and support service activities (-356,000), manufacturing (-302,000), transportation and storage (-233,000), and public administration and defense (-220,000).

By class of worker, wage and salary earners made up the majority of employed persons (64.1 percent), followed by self-employed workers without paid employees (27.6 percent), unpaid family workers (6.6 percent), and employers in own family-operated farms or businesses (1.7 percent).

Among wage and salary workers, 78.7 percent were employed in private establishments, while 14.5 percent worked in government or government-controlled corporations.

On average, employed persons worked 40.5 hours per week in September, slightly higher than 40.3 hours a year earlier.

The underemployment rate — referring to workers who want additional hours or another job — was estimated at 11.1 percent, lower than 11.9 percent in September 2024 but higher than 10.7 percent in August 2025. This translates to 5.52 million underemployed individuals, 58.5 percent of whom worked less than 40 hours a week.

Meanwhile, labor force participation among youth aged 15 to 24 fell to 31.6 percent from 33.9 percent a year ago. The youth employment rate also declined to 88.4 percent from 89.9 percent in September 2024.