February 6, 2025—The Philippine labor market concluded 2024 on a positive note, with a stable employment rate and improving job quality, according to the National Economic and Development Authority (NEDA).
The Philippine Statistics Authority reported today (February 6) that the country’s unemployment rate remained at 3.1 percent in December 2024, the same as last year.
Meanwhile, the underemployment rate decreased to 10.9 percent from 11.9 percent in December 2023, showing that job quality has improved, and fewer workers are looking for extra hours or jobs.
“Following the strategies outlined in the Philippine Development Report 2024, particularly those that strengthen the labor market, is crucial to sustaining our economic momentum and providing higher earning opportunities for Filipinos. The government remains committed to advancing both supply- and demand-side measures that will foster a more dynamic labor environment and meet the targets set in the Philippine Development Plan 2023-2028,” said NEDA Secretary Arsenio M. Balisacan.
The labor force participation rate (LFPR) in December 2024 stood at 65.1 percent, down from 66.6 percent in December 2023. The youth LFPR also fell to 31.9 percent from 34.5 percent, mainly due to schooling (479,000). Similarly, the female LFPR dropped to 54.7 percent from 56.3 percent, as more women reported household responsibilities (671,000) as a barrier to employment.
To align with workforce trends and industry demands, the government is promoting more inclusive work arrangements that meet the needs of individuals from diverse backgrounds, reducing barriers to labor force participation. Efforts to expand employability will also be intensified, including the implementation of the Enterprise-Based Education and Training (EBET) Framework to equip workers with industry-relevant skills.
“Patuloy na isusulong ng pamahalaan ang ating economic transformation agenda at sisiguraduhin ang katatagan ng ating ekonomiya sa pamamagitan ng pagpaparami ng ating mga growth drivers. Sa pamamagitan ng innovation, paggamit ng teknolohiya, at mga estratehikong pamumuhunan, layunin nating paunlarin ang mga bagong sektor at industriya, upang maging isang competitive na alternatibo ang ating bansa sa global supply chains,” Balisacan added.
Meanwhile, the government is also reinforcing reintegration efforts for returning Overseas Filipino Workers (OFWs), particularly in light of shifting immigration policies under the Trump administration. Through the Department of Migrant Workers and the Overseas Workers Welfare Administration, programs such as the Agarang Kalinga at Saklolo para sa mga OFW na Nangangailangan (AKSYON) Fund and the Emergency Repatriation Fund provide immediate financial and welfare assistance to affected OFWs.
To further support returning workers, the National Reintegration Center for OFWs (NRCO) is implementing programs that address the economic, social, and psychological aspects of reintegration. The government is also considering expanding AKSYON Centers in key regions to enhance service accessibility, ensuring that OFWs have the necessary support as they transition back into the local workforce and economy.
“By strengthening social protection, fostering a dynamic and inclusive labor market, and ensuring that economic gains benefit all Filipinos, we can create a workforce that is resilient and future-ready. Our goal is to sustain job creation, improve the quality of employment, and provide every Filipino with opportunities for long-term economic security,” the country’s chief economic planner said.
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