JULY 8, 2025 — The Marcos Administration reaffirms its commitment to creating high-quality and high-paying jobs for Filipinos following the highest recorded labor force participation rate since April 2005, according to the Department of Economy, Planning, and Development (DEPDev).
The Labor Force Survey of the Philippine Statistics Authority (PSA) said persons aged 15 years and over in the labor force now comprise 65.8 percent of the population. This is higher than the 64.8 percent recorded in the same period last year, indicating that an additional 1.4 million Filipinos have joined the labor force, which now consists of 52.32 million individuals.
The unemployment rate declined to 3.9 percent in May 2025, down from 4.1 percent in May 2024. Compared to other Asian countries, the Philippines’ unemployment rate is lower than that of China (5.0%) and India (5.6%) but higher than Malaysia’s (3.0%) and Vietnam’s (2.2%).
On the other hand, the underemployment rate rose to 13.1 percent in May 2025 from 9.9 percent in May 2024 as more part-time workers seeking extra work hours cited variable working schedules or the nature of work as the reasons for working less than 40 hours per week. Likewise, more workers mentioned holidays as their reason for working fewer than 40 hours.
“We welcome this development in labor force participation because it indicates a healthy and competitive Philippine labor market. Generally, a larger workforce can lead to increased economic output and potentially higher GDP growth, as more people contribute to the economy,” said Economy, Planning, and Development Secretary Arsenio M. Balisacan.
“This also reflects growing confidence in the labor market and the impact of ongoing efforts to expand access to employment opportunities across sectors,” he explained.
Moreover, Balisacan said that the government’s continuous push for critical Infrastructure Flagship Projects will address gaps and attract job-generating investments. In addition, the government must enhance the efficiency of public spending and allocate limited fiscal resources to high-impact areas, including quality education, healthcare, food security, and connectivity infrastructure.
He added that equipping Filipinos with in-demand skills and competencies will ensure that the country’s workforce remains agile in an increasingly competitive and dynamic labor market.
“We will leverage recently enacted policy reforms to improve upskilling and reskilling initiatives,” the country’s chief economist said. These, he added, involve stronger industry partnerships under the Enterprise-Based Education and Training (EBET) Framework Act, as well as the implementation of the Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP) and the passage of the Lifelong Learning Development Framework Bill.
“These initiatives, and more, are outlined in more detail in the Trabaho para sa Bayan Plan, which was recently launched,” he said.
Balisacan said the government is working to create an enabling environment that will attract more Global Capability Centers (GCCs) to the Philippines, in line with the country’s shift toward high-value IT-BPM services. To support this, efforts will focus on strengthening workforce competencies in digitalization and generative AI.
As digital technologies gain ground, the government is set to release timely guidelines on the “Future Workforce in an AI Workplace.” These guidelines aim to help government agencies, industry players, labor groups, academic institutions, and workers integrate AI into their operations while safeguarding jobs through enhanced digital literacy and AI-related skills.
The Philippine Development Plan 2023-2028 midterm update is scheduled for release this month. The updated Plan highlights key priorities and recalibrated strategies that will help the country navigate through heightened external uncertainties. The plan is vital for achieving the government’s transformation agenda, including revitalizing quality job creation.
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