Unemployed Filipinos rose to 2.59 million in July 2025 —PSA

The number of Filipinos without jobs or livelihoods increased in July 2025 due to weather disturbances which affected various sectors of the labor market during the period, according to the results of the Philippine Statistics Authority’s latest Labor Force Survey.

At a press briefing on Wednesday, PSA chief and National Statistician Claire Dennis Mapa reported that unemployed persons, ages 15 and above, rose to 2.59 million from 1.95 million in June 2025.

This was also higher than the 2.38 million jobless in July 2024.

As a percentage of 48.64 million participants in the labor force who are actively looking for labor opportunities during the period, the number of jobless persons translated to an unemployment rate of 5.3%, up from 3.7% month-on-month.

This means 53 in 1,000 individuals do not have jobs or livelihoods during the period.

This was also the highest unemployment since August 2022’s 5.3%.

Labor force participation in July 2025 declined from 52.42 million in June 2025 and 50.06 million in July 2024.

Likewise, employed persons, or those with jobs and livelihoods, during the period contracted to 46.05 million from 50.47 million in June 2025 and 47.68 million in July 2024.

As a percentage of labor force participants, the employment rate stood at 94.7%, lower than the 96.3% seen in June 2025 and 95.3% in July 2024.

Mapa attributed the increase in unemployed persons and decreases in both employed and labor force participation to the series of storms which hit the country during the month.

“Una talaga ang nangyari dito sa July round is first tinamaan ang ating bansa, maraming areas ng typhoons. Ito talaga ‘yung nakita namin na main reason kung bakit bumababa ang labor force participation at employment na rin,” the PSA chief said.

(First, what we saw during the July round is that many areas of the country were hit by typhoons. This was really the main reason why the labor force participation and employment numbers declined.)

The national statistician said sectors which are “sensitive to weather” saw year-on-year declines in July this year.

In particular, the following posted the highest annual decreases in terms of number of employed persons:

• Agriculture and forestry - down by 1.38 million
• Wholesale and retail trade; repair of motor vehicles and motorcycles - down by 897,000
• Fishing and aquaculture - down by 173,000
• Construction - down by 147,000
• Accommodation and food service activities - down by 69,000

Moreover, underemployed individuals —those who expressed the desire to have additional hours of work in their present job or to have an additional job, or to have a new job with longer hours of work— stood at 6.8 million or 14.8% of the 46.05 million employed persons in July.

The underemployment rate rose from 11.4% in June 2025 and 12.1% in July 2024.

In a separate statement, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan said that “the government must intensify efforts to enhance climate resilience and improve workforce agility to future-proof the country’s labor market” following the softer labor market conditions observed in July 2025, which was “largely due to economic disruptions caused by a series of extreme weather events.”

Balisacan said the multiple tropical cyclones and an intensified southwest monsoon, which led to widespread flooding, landslides, and other disruptions halted economic activity and business operations across large parts of the country—particularly in Luzon, where a series of class and work suspensions were implemented due to displacement, inaccessible workplaces, and safety concerns.

The country’s chief economist added that government policies must focus on boosting productivity and resilience in the sector through modernized production methods, climate-smart practices, and stronger market linkages amid the decline in employment, largely in the agricultural sectors.

“This must be complemented by expanded rural infrastructure, improved digital connectivity, and increased access to training opportunities,” the country’s chief economist added.

Class of worker

By class of worker, wage and salary workers accounted for more than half of the employed persons at 68.7% during the period.

This was followed by self-employed without any paid employees at 24.7%, unpaid family workers at 3.9%, and employers in their own family-operated farm or business at 2.6%.

Among wage and salary workers, those employed in private establishments remained to account for the highest share of 78.5% of the total wage and salary workers or 53.9% of the total number of employed persons. 

This was followed by those employed in government or government-controlled corporations with a share of 14.4% of the wage and salary workers or 9.9% of the total number of employed persons during the period. 

Meanwhile, Cordillera Administrative Region (CAR) registered the highest employment rate in July 2025 at 96.6%, while Region V had the lowest at 92.3%.

Eight regions posted unemployment rate higher than the national average of 5.3% in July 2025, these are the following:

• Region V-Bicol Region - 7.7%
• Region IV-A-CALABARZON - 6.6%
• Region VII-Central Visayas - 6.1%
• MIMAROPA Region - 6.0%
• Negros Island Region - 5.7%
• Region IX-Zamboanga Peninsula - 5.6%
• Region VI-Western Visayas - 5.6%
• Region VIII-Eastern Visayas - 5.3%

“The latest employment figures underscore the urgency of modernizing our economic sectors to withstand disruptions, whether from climate change or technological shifts. We are also fully committed to enhancing employability, expanding labor market programs, and collaborating with key stakeholders to future-proof the Filipino workforce,” Balisacan said.

The DEPDev chief also highlighted the importance of reducing the school-to-work transition period and enhancing youth employability. 

Balisacan said expanding youth employment programs, such as the Government Internship Program, JobStart, and the Special Program for Employment of Students, is essential to equipping young Filipinos with the skills needed to thrive in today’s workplace.

“The Marcos administration remains focused on addressing job-skills mismatch and preparing the workforce for the demands of a rapidly evolving economic environment,” the country’s chief economist said. —AOL, GMA Integrated News