Photo credit: DOLE

The latest Labor Force Survey results for May 2025 point to a generally improving employment landscape, tempered by signs of persisting underemployment and sectoral shifts. The data show a more active labor force, a modest drop in unemployment, and record-high employment levels, though the increase in underemployment suggests that many workers still seek better or fuller opportunities.

The labor force participation rate (LFPR) climbed to 65.8 percent in May 2025, up from 64.8 percent a year earlier and from 63.7 percent in April 2025. This translates to 52.32 million Filipinos aged 15 and over in the labor force, the highest figure recorded since April 2005. Both year-on-year and month-on-month, more people have joined or remained in the workforce, reflecting an encouraging trend in economic engagement.

Unemployment continued its gradual decline, with the rate falling to 3.9 percent from 4.1 percent in May 2024 and April 2025. In absolute terms, 2.03 million individuals were unemployed in May 2025, down from 2.11 million a year ago and 2.06 million a month earlier. The employment rate rose slightly to 96.1 percent, with the number of employed persons reaching 50.29 million—an increase of about 1.4 million from May 2024 and 1.6 million from April 2025.

The services sector maintained its dominant share of employment at 61.8 percent, followed by agriculture at 21.1 percent and industry at 17.1 percent. Within services, wholesale and retail trade, along with repair of motor vehicles, remained the largest subsector, accounting for nearly one in five jobs. Agriculture and forestry also posted strong gains, while construction and manufacturing showed declines on an annual basis. Month-on-month, agriculture and forestry led the increase in employed persons, followed closely by accommodation and food service activities.

In terms of job quality, wage and salary workers continued to make up the majority of employed individuals, accounting for 62.8 percent. Among them, most were in private establishments, with a smaller share working in government and government-controlled corporations. Self-employment without paid employees accounted for over a quarter of the workforce, while unpaid family workers and employers in family-operated businesses made up the remainder.

Despite more people working, the average hours worked per week dipped slightly to 39.8 hours, down from 40.6 hours in May 2024 and from 39.9 hours in April 2025. A small fraction of workers reported working just one hour during the reference week, roughly on par with levels from a year ago.

Underemployment, however, remains a challenge. The share of employed persons who wanted to work more hours or find better jobs rose to 13.1 percent in May 2025, higher than the 9.9 percent recorded a year earlier but lower than April 2025’s 14.6 percent. Around 6.6 million people were underemployed, the majority of whom worked less than 40 hours a week.

For young workers aged 15 to 24, there was notable progress. The youth LFPR rose to 33.6 percent, with employment among young people increasing to 91.5 percent from 88.8 percent in May 2024. Youth underemployment showed a modest improvement compared to the previous month, though it was slightly higher than the rate seen a year earlier.

The May 2025 data illustrate an increasingly active labor force and continuing job creation. At the same time, the persistently high underemployment rate underscores the need to improve job quality and match opportunities with workers’ skills and aspirations. As more people join and stay in the workforce, ensuring that employment remains both ample and meaningful will remain a critical policy priority.