NATIONAL
Advocates Philippines
A Shrunken Workforce: Philippine Labor Force Participation Dips In July 2025
FILE
The latest report on the nation’s job market paints a complex picture, headlined by a notable decline in the number of Filipinos participating in the workforce. According to the July 2025 Labor Force Survey, the country's labor force shrank to 48.64 million, a decrease of over 1.4 million people from the same period last year.
This contraction in the workforce coincided with a slight increase in the national unemployment rate, which rose to 5.3 percent from 4.7 percent in July 2024. The total number of unemployed individuals now stands at 2.59 million, adding to the challenge facing the Philippine economy.
On the employment side, the number of working Filipinos also decreased, dropping to 46.05 million. This translates to an employment rate of 94.7 percent, a modest decline from the 95.3 percent recorded a year ago.
While the services sector continues to be the primary engine of employment, a closer look at specific industries reveals a mixed bag of results. Sectors like manufacturing, transportation, and healthcare showed robust job growth, adding hundreds of thousands of new positions. However, this was not enough to offset significant job losses in other key areas, particularly in agriculture, which saw a decline of 1.38 million jobs over the past year. The wholesale and retail trade sector also faced a substantial drop in employment, suggesting a broader slowdown in these areas.
A growing concern highlighted in the report is the rise in underemployment, which climbed to 14.8 percent. This indicates that 6.80 million employed individuals are actively seeking additional work hours or a second job to supplement their income.
The report also reveals challenges facing the country's youth. The labor force participation rate among those aged 15 to 24 fell to 29.5 percent, and the proportion of young people who are not in education, employment, or training (NEET) increased to 15.9 percent. This suggests a growing need for targeted programs to help this demographic transition into the workforce.
The July 2025 Labor Force Survey provides a critical snapshot for policymakers, highlighting a shrinking workforce and persistent job market challenges. The data points to a need for strategies that not only create new jobs but also support industries facing decline and ensure that all Filipinos, especially the youth, have the opportunity to participate in a thriving economy.
This contraction in the workforce coincided with a slight increase in the national unemployment rate, which rose to 5.3 percent from 4.7 percent in July 2024. The total number of unemployed individuals now stands at 2.59 million, adding to the challenge facing the Philippine economy.
On the employment side, the number of working Filipinos also decreased, dropping to 46.05 million. This translates to an employment rate of 94.7 percent, a modest decline from the 95.3 percent recorded a year ago.
While the services sector continues to be the primary engine of employment, a closer look at specific industries reveals a mixed bag of results. Sectors like manufacturing, transportation, and healthcare showed robust job growth, adding hundreds of thousands of new positions. However, this was not enough to offset significant job losses in other key areas, particularly in agriculture, which saw a decline of 1.38 million jobs over the past year. The wholesale and retail trade sector also faced a substantial drop in employment, suggesting a broader slowdown in these areas.
A growing concern highlighted in the report is the rise in underemployment, which climbed to 14.8 percent. This indicates that 6.80 million employed individuals are actively seeking additional work hours or a second job to supplement their income.
The report also reveals challenges facing the country's youth. The labor force participation rate among those aged 15 to 24 fell to 29.5 percent, and the proportion of young people who are not in education, employment, or training (NEET) increased to 15.9 percent. This suggests a growing need for targeted programs to help this demographic transition into the workforce.
The July 2025 Labor Force Survey provides a critical snapshot for policymakers, highlighting a shrinking workforce and persistent job market challenges. The data points to a need for strategies that not only create new jobs but also support industries facing decline and ensure that all Filipinos, especially the youth, have the opportunity to participate in a thriving economy.
Sep 10, 2025
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