Unemployment hits 3.7% in June 2025

The Philippine labor market sustained its strong performance in June 2025, reflecting improved access to employment opportunities, according to the Department of Economy, Planning, and Development (DEPDev).

The June 2025 Labor Force Survey (LFS) by the Philippine Statistics Authority (PSA) reported that the underemployment rate declined to 11.4 percent, down from 12.1 percent in June 2024, indicating continued improvements in job quality. This is largely driven by the drop in the invisibly underemployed, particularly the manufacturing (-251,000) and wholesale & retail trade (-220,000) subsectors.

Meanwhile, the unemployment rate slightly increased to 3.7 percent from 3.1 percent in the same period last year. Notably, youth unemployment in June 2025 grew to 9.4 percent from 8.6 percent.

“These gains reflect the impact of our sustained efforts to improve the overall business climate and create high-quality jobs. However, we remain cautious due to the slight uptick in unemployment, particularly among the youth. To address this, we are committed to enhancing workforce competitiveness by aligning education and training systems with industry needs and accelerate interventions to improve school-to-work transitions and youth employability,” said DEPDev Secretary Arsenio M. Balisacan.

To support this agenda, the government is leveraging policy reforms aimed at strengthening workforce development. These include the following:

• Enterprise-Based Education and Training (EBET) Framework Act
• Expanded Tertiary Education Equivalency and Accreditation Program (ETEEAP)
• Proposed Lifelong Learning Development Framework Bill

These initiatives enable a culture of continuous learning among Filipinos, promote industry-driven learning, and recognize prior learning experiences, helping Filipinos adapt to evolving labor market demands.

The Marcos Administration is likewise advancing key programs and initiatives of the Department of Labor and Employment to boost youth employment, such as the Special Program for the Employment of Students, the Government Internship Program, the JobStart Philippines Program, as well as strengthened coordination with LGU-based Public Employment Service Offices (PESOs) and school-based Job Placement Offices.

The Department of Trade and Industry’s implementation of the Tatak Pinoy Strategy will also guide efforts to strengthen local enterprises, attract investments, and elevate the country’s position in the global value chain.

Balisacan underscored the importance of aligning workforce competencies with emerging industry demands, particularly in high-value sectors such as Global Capability Centers (GCCs) and digital services. He also highlighted the forthcoming release of guidelines on the “Future Workforce in an AI Workplace,” which aim to support AI integration across government, industry, and education, while safeguarding job security through stronger digital literacy and AI-related skills.

“These strategic efforts are part of the Trabaho Para sa Bayan Plan, our long-term blueprint for generating inclusive and high-quality employment. Through a nationwide roadshow, we are working closely with local governments, industry partners, and training institutions to ensure the effective implementation of key reforms,” he added.

To generate more high-quality jobs, the government is also working to strengthen the country’s position as a global leader in the semiconductor industry. This effort will be supported by the Philippine Semiconductor and Electronics Industry Roadmap, which is currently being developed to outline key investment priorities, innovation goals, and talent development strategies. By accelerating growth in this sector, the government aims to create more employment opportunities for skilled Filipino workers and enhance the country’s competitiveness in advanced manufacturing.

Complementing these initiatives, the government is accelerating the implementation of Infrastructure Flagship Projects (IFPs) to attract job-generating investments and address infrastructure bottlenecks. Improving public spending efficiency and prioritizing investments in education, healthcare, food security, and connectivity infrastructure will further support inclusive and sustainable growth.

“The numbers show that our efforts are bearing fruit, but more work lies ahead. We must accelerate structural reforms to make our labor market more inclusive, competitive, and resilient. Through sustained collaboration and innovation, we aim not just to create more jobs, but to sustain improvements in the lives of all Filipinos,” Balisacan concluded.