The Philippine government commits to pursue efforts to improve the labor market environment to generate quality jobs amid global and domestic issues, according to the Department of Economy, Planning, and Development (DEPDev).
The Philippines Statistics Authority (PSA) reported today (February 6) that the Labor Force Survey for December 2025 showed a slowdown in labor market momentum, with the unemployment rate rising to 4.4 percent from 3.1 percent in December 2024.
Also, a decline in the labor force participation rate (64.4% from 65.1% in December 2024) and overall employment levels (49.4 million) were recorded during the period. Youth unemployment rate rose to 12.2 percent in December 2025 from 9.1 percent while the share of discouraged workers increased to 7.7 percent from 6.3 percent in December 2024.
“As we make 2026 a rally point to revitalize PDP implementation, we will prioritize employment creation by restoring consumer and business confidence, reduce the cost of doing business, encourage innovation, and expand training and reskilling opportunities,” said DEPDev Undersecretary Rosemarie G. Edillon, the agency’s officer-in-charge while Secretary Arsenio M. Balisacan is on official travel.
She also said that the government would resume and accelerate the completion of delayed infrastructure projects and prioritize the implementation of high-impact programs, activities, and projects in crucial sectors.
Meanwhile, the country’s underemployment rate fell to 8.0 percent in December 2025, down from 10.9 percent in the same month in 2024. This is the lowest-ever recorded underemployment rate since April 2005, when the current time series measuring labor figures was adopted.
This corresponds to 3.93 million employed individuals expressing the desire to have additional hours of work in their current job, or to have an additional job, or to have a new job with longer hours of work.
“The decline in underemployment allows workers to participate in the upskilling and reskilling initiatives to be rolled out by government. This will help Filipino workers to remain competitive in today’s dynamic business environment. We will continue to work closely with Congress to institute reforms to make our labor market environment (firms, workforce, future jobseekers, training institutions, regulators) dynamic and responsive to the evolving world of work,” Edillon said.
She also said that government will facilitate the adoption of digital technologies to strengthen the capacity of high-productivity sectors, including the IT-BPM and advanced manufacturing sectors to ensure sustainable job growth.
“If we can expand global capability centers and develop specialized digital services, we can generate high-value jobs and enhance the country’s competitive position in the global market,” Edillon said.
She added that supply-side measures will continue to be prioritized to support an inclusive, efficient, and dynamic labor market environment.
These include the implementation of the Enterprise-Based Education and Training Framework Act and other skills development initiatives identified in the Trabaho Para sa Bayan Plan 2025-2034 and the recently launched National Education and Workforce Development Plan 2026–2035. – END –
