Unemployment jumps to 5% in October 2025 as economy struggles to absorb job seekers

MANILA, Philippines – The Philippines’ unemployment rate worsened to 5% in October 2025 as the labor market struggled to absorb an influx of job seekers, the Philippine Statistics Authority (PSA) reported on Wednesday, December 10.

The latest unemployment figure translates to 2.54 million jobless Filipinos, which is higher than the 3.8% or 1.96 million Filipinos recorded in September 2025 and the 3.9% or 1.97 million jobless Filipinos logged in October 2024.

Underemployment in October also grew to 12%, equivalent to 5.81 million Filipinos, from 11.1% or 5.52 million Filipinos in September.

National Statistician Dennis Mapa noted an increase in labor force participation, which includes Filipinos who are working and seeking jobs.

“Ang labor force participation tumaas ng mga 1.04 million…. Out of those additional na nag-participate, 463,000 ang nagkaroon ng trabaho at 576,000 ay hindi nagkaroon ng trabaho,” he explained.

(Labor force participation went up by around 1.04 million. Out of those additional people who participated, 463,000 got jobs and 576,000 did not.)

The public administration sector added the most jobs in October year-on-year with 257,000 additional workers. Jobs in agriculture and manufacturing — two sectors which often shed jobs earlier in the year — also gained more workers in October.

Mapa attributed the agriculture sector’s job gains to a surge in jobs tied to the growing of palay, which he noted usually peaks in the fourth quarter.

Meanwhile, jobs in other service activities such as computer repairs, personal and household goods, laundry services, and domestic services dropped by 520,000 year-on-year.

The number of Filipinos aged 15 to 24 years old who are not working or studying also increased to 13% or 2.62 million young Filipinos.

The Department of Economy, Planning, and Development (DEPDev) vowed to integrate labor market information to improve industry-skills matching. 

DEPDev Secretary Arsenio Balisacan also noted that generating more quality jobs depends on the implementation of the Trabaho Para sa Bayan Plan and the Philippine Development Plan. 

“Guided by these plans, the government will boost workforce competitiveness by accelerating learning pathways and expanding lifelong learning opportunities, equipping workers with in-demand skills such as digital literacy, green technology capabilities, and expertise in higher-value services,” he said. – with reports from Arriane dela Cruz/Rappler.com

Arriane dela Cruz is a Rappler intern. Learn more about Rappler’s internship program here.