Philippines Employment Situation: December 2025 Analysis
The Philippine Statistics Authority (PSA) and the Department of Labor and Employment (DOLE) have released the latest figures for the December 2025 Labor Force Survey. The data reveals a mixed landscape for the Philippine workforce: while the number of unemployed individuals has increased compared to the previous year, there is a significant improvement in the quality of jobs, evidenced by a sharp drop in underemployment.
At a Glance: December 2025 vs. December 2024
For researchers and analysts looking for quick data extraction, here is the comparative summary of the key labor statistics.
Indicator | December 2025 | December 2024 | Change |
|---|---|---|---|
Employment Rate | 95.6% | 96.9% | -1.3% |
Unemployment Rate | 4.4% | 3.1% | +1.3% |
Underemployment Rate | 8.0% | 10.9% | -2.9% |
Labor Force Participation | 64.4% | 65.1% | -0.7% |
Key Findings
1. Unemployment Rate Increases to 4.4%
The headline figure for December 2025 shows a rise in the unemployment rate to 4.4%, translating to approximately 2.26 million unemployed Filipinos. This is an increase from the 3.1% (1.63 million) recorded in December 2024. The data suggests that despite economic activity, the absorption of the labor force into the job market slowed down compared to the previous year's holiday season peak.
2. Underemployment Improves Significantly
The "silver lining" of the December 2025 report is the Underemployment Rate, which fell to 8.0% (3.93 million) from 10.9% (5.48 million) in 2024.
What this means: Underemployment refers to employed persons who express the desire to have additional hours of work or an additional job. A lower rate indicates that more employed Filipinos are finding full-time work or are satisfied with their current working hours, suggesting an improvement in the quality of employment available.
3. Dip in Labor Force Participation
The Labor Force Participation Rate (LFPR) saw a slight decline from 65.1% in 2024 to 64.4% in 2025. The total labor force (employed + unemployed) stands at 51.69 million. This slight decrease suggests a marginally smaller portion of the working-age population was active in the labor market during this period.
4. Employment Rate Adjustments
Corresponding with the rise in unemployment, the total Employment Rate settled at 95.6%, representing 49.43 million employed individuals. This is a decrease from the 50.19 million employed in December 2024.
Summary for Business Owners and HR Leaders
For businesses planning their workforce strategy for 2026, these statistics offer vital context:
Talent Availability: With unemployment rising slightly to 2.26 million, there is a larger pool of available talent actively seeking work compared to last year.
Job Satisfaction: The drop in underemployment suggests that current employees are finding more stable or sufficient hours. Retention strategies should focus on maintaining this satisfaction.
Data Source: Philippine Statistics Authority (PSA) Labor Force Survey, presented by the Department of Labor and Employment (DOLE).
Reference: Employment Situation December 2025