Unemployment down to 4.3% in January 2025

Philippine News Agency

FILE: Commuters wait for rides in Commonwealth Avenue, Quezon City on Friday (Jan. 17, 2025). (PNA photo by Robert Oswald P. Alfiler)

MANILA – The country’s unemployment rate declined to 4.3 percent in January 2025, down from 4.5 percent recorded in January 2024, the Philippine Statistics Authority (PSA) said Thursday.

Underemployment also decreased to 13.3 percent from 13.7 percent, indicating an improvement in job quality.

The PSA also reported that more Filipinos entered the labor market.

Labor force participation rose to 63.9 percent, up from 61.1 percent during the same period last year. This rise equates to an additional 2.6 million individuals across all age groups joining the labor force, of which 1.4 million are in their prime working age.

Youth labor force participation increased to 31.8 percent in January 2025, up from 29.7 percent a year earlier, reflecting stronger engagement among young Filipinos in the labor market.

The National Economic and Development Authority (NEDA) said the government would cultivate “a dynamic and investment-friendly economy” while equipping the workforce with industry-standard skills to maintain the upward trajectory of the Philippine labor market.

NEDA Secretary Arsenio Balisacan attributed the labor market’s strong performance to the government’s commitment to creating an enabling business environment while equipping the workforce with industry-relevant skills.

“While we welcome this development, we also acknowledge that these additional jobs are classified as vulnerable. Therefore, our strategy remains clear: to sustain job creation by fostering a dynamic and investment-friendly economy while preparing our workforce for high-growth and emerging industries that offer high-quality, well-paying jobs,” he said.

Meanwhile, the recently signed Implementing Rules and Regulations for the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act will create a more favorable investment climate for businesses.

The law streamlines fiscal incentive policies, clarifies investment rules, and enhances the ease of doing business, making the Philippines a more attractive investment hub.

“By cutting red tape and clarifying ambiguities in investment policies, CREATE MORE aims to encourage local and foreign enterprises to expand their operations in the Philippines. This thrust, in turn, is expected to create additional employment opportunities and support the broader goal of developing a highly skilled, future-ready workforce,” Balisacan added.

He also emphasized the importance of resilience in the agriculture sector in addressing vulnerable employment.

He said the government would continue strengthening and modernizing its early warning systems to enhance disaster preparedness by utilizing artificial intelligence for improved prediction models.

“To further support growth and investment in the IT-BPM sector, the government, working closely with industry players, will promote the reskilling and upskilling of the workforce to meet the industry’s advanced skill requirements amidst AI (artificial intelligence) integration,” Balisacan said.