Unemployment, underemployment climb to 5.3%, 14.8% in July — PSA

The country’s unemployment and underemployment rates rose in July 2025, indicated at 5.3 percent and 14.8 percent, respectively, the Philippine Statistics Authority (PSA) reported on September 10.

Photo Courtesy of Business World

According to PSA’s Labor Force Survey, weather disturbances are said to be the main cause of this increase in rate, considering their effects in various sectors of the labor market.

“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,” PSA Chief Claire Dennis Mapa explained.

The unemployment rate climbed to 5.3 percent in the same period, a 1.6 percent leap from June 2025’s 3.7 percent, quantified to be at least 2.59 million Filipinos, the highest since August 2022.

Likewise, the underemployment rate rose to 14.8 percent from the 11.4 percent recorded the month before; this is about 6.8 million of the 46.05 million employed Filipinos in July.

On the other hand, from 65.7 percent in June, the Labor Force Participation Rate (LFPR) in the country continues to decline to 60.7 percent in July based on PSA’s report.

The LFPR for the said month is estimated to be 48.64 million Filipinos who are aged 15 years and over that are either employed or unemployed.

In comparison with the 63.5 percent in the July 2024 data, the 2025 data is relatively lower by 2.8 percent, equating to 1.42 million Filipinos.

Meanwhile, in a different press release, Department of Economy, Planning, and Development (DEPDev) Secretary Arsenio Balisacan emphasized the need for government policies to focus on formulating solutions to “improve workforce agility to future-proof the country’s labor market.”