By Dean Aubrey Caratiquet
Amid global and domestic headwinds, the Department of Economy, Planning, and Development (DEPDev) hailed the resilience of the Philippine labor market in September 2025.
In a media release on Thursday, the agency noted a decline in the underemployment rate to 11.1%, which was lower than 11.9% in 2024, citing data from the Philippine Statistics Authority’s (PSA) Labor Force Survey.
This is attributed to a decrease in the number of employed individuals who expressed desire to have additional hours of work in their present job, or to have an additional source of income, notably in the sectors of transportation and storage (-155,000) and administrative and support services (-138,000).
The survey also cited a decline in the country’s unemployment rate, which is pegged at 3.8%—slightly lower than the 3.9% figure recorded in August, and indicative of a better labor market performance than regional peers India and China, whose figures are at 5.2%.
The construction sector led job creation, adding 514,000 workers year-on-year. The services sector remained the largest employer, accounting for 61.3% of total jobs. Meanwhile, the agriculture and fisheries sectors also posted gains, adding around 439,000 workers during the period.
DEPDev Secretary Arsenio Balisacan meanwhile underscored the importance of continuous education and training, particularly in emerging and in-demand skill areas such as digital literacy, green technologies, and higher-value services.
Secretary Balisacan said in a statement, “To build and strengthen the resilience of our labor markets, the Marcos Jr. administration will focus on implementing strategies that create stable, high-quality jobs and expand opportunities for informal workers and the youth.”
He also cited the recent passage of the Lifelong Learning Development Framework Act, which establishes a system for continuous and accessible learning for the workforce.
The DEPDev Chief said, “Ensuring the timely release of its implementing rules and regulations is a priority. The government must also actively communicate the policy, particularly to local government units, which will play a key role in promoting lifelong learning.”
Noting the economic indicators in the Labor Force Survey, Balisacan emphasized the need to sustain the resilience of the domestic labor market and ensure that Filipino workers are able to meet the demand of salient and emerging industries driven by digitalization and artificial intelligence (AI).
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