Unemployment Rate Drops to 4.3% in January 2025

The country’s unemployment rate declined to 4.3% in January 2025, slightly lower than the 4.5% recorded in the same period last year, according to the Philippine Statistics Authority (PSA). However, this was higher than the 3.9% recorded in October 2024.

The number of unemployed individuals remained at 2.16 million, the same as in January 2024. Meanwhile, the employment rate rose to 95.7%, up from 95.5% a year earlier. The labor force participation rate also improved, reaching 63.9%, compared to 61.1% in January 2024.

The services sector remained the largest employer, accounting for 61.6% of the total workforce. Agriculture contributed 21.1%, while the industry sector made up 17.2%. The biggest job gains were seen in agriculture, wholesale and retail trade, and food service activities, while manufacturing and professional services saw the largest declines.

Underemployment also showed improvement, dropping to 13.3% from 13.7% in January 2024, with 6.47 million workers seeking additional hours or better jobs. The average workweek shortened to 40.4 hours, compared to 42.2 hours a year prior.

Among regions, the Bicol Region posted the highest unemployment rate at 6.5%, while the Zamboanga Peninsula had the lowest at 2.3%. Youth employment also improved, with the proportion of young people not in education, employment, or training decreasing to 11.7% from 13.7% last year.

The latest figures reflect a stable labor market, but challenges remain in certain industries that saw job losses. (ASC)