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Advocates Philippines
Slight Dip In Labor Force Participation, But Employment Numbers Reach Record High In June 2025
Photo credit: DOLE
The Philippine labor market in June 2025 saw mixed signals, with labor force participation slightly easing but the total number of Filipinos in the labor force reaching a record high.
According to the latest data, the labor force participation rate (LFPR) stood at 65.7 percent—marginally lower than the 66.0 percent recorded in the same month last year, and down slightly from 65.8 percent in May 2025. Despite this, the total number of Filipinos aged 15 and above participating in the labor force reached 52.42 million, the highest since April 2005.
Meanwhile, the employment rate in June 2025 was 96.3 percent, slightly lower than the 96.9 percent recorded in June 2024, but modestly higher than the 96.1 percent posted in the previous month. This translated to 50.47 million employed individuals, an increase from both the previous year and the preceding month.
On the other hand, the unemployment rate rose year-on-year to 3.7 percent, up from 3.1 percent in June 2024. However, on a month-to-month basis, it showed improvement from May 2025’s 3.9 percent. In absolute terms, the number of unemployed persons in June 2025 stood at 1.95 million.
The services sector continued to dominate employment, accounting for 61.4 percent of all employed persons, followed by agriculture at 20.9 percent and industry at 17.7 percent. Within services, the largest sub-sector remained wholesale and retail trade; repair of motor vehicles and motorcycles, making up 21.5 percent of total employment. This was followed by agriculture and forestry (17.7%) and construction (10.1%).
In terms of yearly gains, fishing and aquaculture saw the most notable increase in employment, adding over half a million jobs. Other sectors with significant growth included trade, financial services, transport, and health services. On the other end, construction, agriculture, and manufacturing experienced the largest declines in employment year-on-year.
The number of wage and salary workers continued to make up the bulk of employed persons, representing 63.0 percent of the total. Most of these were working in private establishments, which alone accounted for nearly half of the total employed population.
Average weekly hours worked in June 2025 was 40.5, slightly down from 40.9 hours in the same month the previous year. The number of individuals who worked only one hour during the week rose slightly year-on-year but fell compared to May 2025.
Encouragingly, the underemployment rate—which tracks workers seeking longer hours or additional jobs—dropped to 11.4 percent, improving from both the previous year and the previous month. This represents 5.76 million employed persons still wanting more work. The majority of them—62.4 percent—were classified as visibly underemployed, working fewer than 40 hours per week.
Among the youth labor force (aged 15 to 24), participation dipped to 33.1 percent, while the employment rate declined to 90.6 percent. Youth underemployment stood at 10.2 percent, with approximately 615,000 young workers expressing a desire for additional work hours or opportunities.
Despite some softening in participation and a modest increase in unemployment, the June 2025 data suggests the labor market remains relatively stable. The continued growth in employment levels and improvement in underemployment figures offer cautious optimism amid shifting sectoral dynamics.
According to the latest data, the labor force participation rate (LFPR) stood at 65.7 percent—marginally lower than the 66.0 percent recorded in the same month last year, and down slightly from 65.8 percent in May 2025. Despite this, the total number of Filipinos aged 15 and above participating in the labor force reached 52.42 million, the highest since April 2005.
Meanwhile, the employment rate in June 2025 was 96.3 percent, slightly lower than the 96.9 percent recorded in June 2024, but modestly higher than the 96.1 percent posted in the previous month. This translated to 50.47 million employed individuals, an increase from both the previous year and the preceding month.
On the other hand, the unemployment rate rose year-on-year to 3.7 percent, up from 3.1 percent in June 2024. However, on a month-to-month basis, it showed improvement from May 2025’s 3.9 percent. In absolute terms, the number of unemployed persons in June 2025 stood at 1.95 million.
The services sector continued to dominate employment, accounting for 61.4 percent of all employed persons, followed by agriculture at 20.9 percent and industry at 17.7 percent. Within services, the largest sub-sector remained wholesale and retail trade; repair of motor vehicles and motorcycles, making up 21.5 percent of total employment. This was followed by agriculture and forestry (17.7%) and construction (10.1%).
In terms of yearly gains, fishing and aquaculture saw the most notable increase in employment, adding over half a million jobs. Other sectors with significant growth included trade, financial services, transport, and health services. On the other end, construction, agriculture, and manufacturing experienced the largest declines in employment year-on-year.
The number of wage and salary workers continued to make up the bulk of employed persons, representing 63.0 percent of the total. Most of these were working in private establishments, which alone accounted for nearly half of the total employed population.
Average weekly hours worked in June 2025 was 40.5, slightly down from 40.9 hours in the same month the previous year. The number of individuals who worked only one hour during the week rose slightly year-on-year but fell compared to May 2025.
Encouragingly, the underemployment rate—which tracks workers seeking longer hours or additional jobs—dropped to 11.4 percent, improving from both the previous year and the previous month. This represents 5.76 million employed persons still wanting more work. The majority of them—62.4 percent—were classified as visibly underemployed, working fewer than 40 hours per week.
Among the youth labor force (aged 15 to 24), participation dipped to 33.1 percent, while the employment rate declined to 90.6 percent. Youth underemployment stood at 10.2 percent, with approximately 615,000 young workers expressing a desire for additional work hours or opportunities.
Despite some softening in participation and a modest increase in unemployment, the June 2025 data suggests the labor market remains relatively stable. The continued growth in employment levels and improvement in underemployment figures offer cautious optimism amid shifting sectoral dynamics.
Aug 6, 2025
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