Philippine Unemployment and Underemployment Rates Surge in July 2025 Amid Typhoon Impact

The Philippines experienced a notable increase in both unemployment and underemployment rates in July 2025, the Philippine Statistics Authority (PSA) announced on September 10. Unemployment rose to 5.3 percent, up 1.6 percentage points from June's 3.7 percent, reaching approximately 2.59 million Filipinos without work—the highest level since August 2022.

Underemployment similarly escalated to 14.8 percent from 11.4 percent in the previous month, representing about 6.8 million of the 46.05 million employed individuals. Meanwhile, the Labor Force Participation Rate (LFPR) continued its downward trend, dropping from 65.7 percent in June to 60.7 percent in July 2025. This translates to roughly 48.64 million Filipinos aged 15 and above who are either working or actively seeking employment.

These shifts are largely attributed to the impact of severe weather disturbances earlier in the month. PSA Chief Claire Dennis Mapa stated, "The primary factor in July was the widespread effect of typhoons across many areas of the country. This significantly contributed to the decline in labor force participation and employment."

Comparatively, the July 2025 LFPR is 2.8 percentage points lower than the 63.5 percent recorded in July 2024, indicating a reduction of approximately 1.42 million participants in the labor market year-on-year.

In response to these developments, Department of Economy, Planning, and Development Secretary Arsenio Balisacan emphasized the importance of strengthening government initiatives. He highlighted the need to design policies that enhance workforce adaptability, aiming to "improve workforce agility to future-proof the country’s labor market."