Unemployment, underemployment rates dip in August

MANILA— The Philippines’ employment situation showed improvement in August from July, the Philippine Statistics Authority said on Wednesday. 

The PSA said the unemployment rate dipped to 5.3 percent in August from 6 percent in July. This means that 2.77 million workers were jobless during the month, which was lower compared to the 3.14 million jobless in July. 

The underemployment rate, meanwhile, was seen at 11.9 percent in August, which was lower than the 12.9 percent rate in July. This means that 5.9 million workers were classified as underemployed in August, down from 6.33 million in July. 

Workers who already have a job but are still looking for extra jobs or additional work hours are classified as underemployed by the PSA.

Despite the month-on-month improvements, year-on-year metrics pointed to lingering weakness in the labor market. Total employment fell from 50.1 million in August 2025, dragged down by sharp annual job losses in manufacturing (-350,000) and fishing (-335,000).

The services sector continued to dominate the labor market, accounting for 61.7 percent of all employed persons, followed by agriculture at 20.9 percent and industry at 17.3 percent. Wholesale and retail trade remained the nation’s top single sub-sector, employing 19.0 percent of total workers.

By worker category, wage and salary workers comprised 64.2 percent of the workforce, with private establishments absorbing 78.4 percent of that group—representing just over half of all employed Filipinos.

Youth employment among those aged 15 to 24 recovered to 84.3 percent from 81.4 percent in July, though it trailed the 88.3 percent level recorded a year ago.