Millions of Filipinos found themselves unemployed or underemployed in January as the labor demands during the Christmas season started to decline, Philippine Statistics Authority (PSA) said on Thursday, March 6.
Data from PSA’s Labor Force Survey showed that the number of jobless Filipinos increased to 2.16 million in January, up month-on-month from the 1.63 million unemployed individuals in December 2024.
The latest figure translated to an unemployment rate of 4.3 percent in January, higher than the 3.1 percent rate recorded in December 2024.
Simultaneously, 6.47 million employed individuals sought additional jobs or extended working hours in January to supplement their income, an increase from the 5.48 million recorded in the previous month.
This resulted in an underemployment rate of 13.3 percent, up from the earlier rate of 10.9 percent.
Consequently, the number of employed persons during the period declined to 48.49 million from 50.19 million in the last month of 2024. This translates to an employment rate of 95.7 percent, down from 96.9 percent.
In a press briefing, Deputy National Statistician and PSA Assistant Secretary Divina Gracia del Prado attributed the increase in unemployment and underemployment rates to reduced labor demand after the seasonal spike in workforce needs during the holiday period.’
Del Prado also cited other reasons for unemployment, including workers awaiting job recalls or rehiring.
“Pag-December, nag-shoot up yung number ng employed. And then, sandali sa January, bumaba-baba na kasi (…) na-lessen na yung demand for workers, kasi we need to have more workers in preparation or during the Christmas season,” Del Prado said.
“May mga reasons na unemployed sila because (…) waiting for rehire or job recall ang mga reasons. So isa yan sa reason and yung isa din is naghahanap ng trabaho ang reason and available siya magtrabaho. So available siya pero wala na yung trabaho,” she added.
The PSA also noted that wage and salary workers remained the largest group among employed individuals, representing 63% of the total employed population in January 2025.
Following this, self-employed individuals without paid employees made up 28.2%, while unpaid family workers accounted for 6.6%. Employers managing their own family-operated farms or businesses had the smallest share at 2.2%.
Those working in private establishments continued to dominate among wage and salary workers, comprising 78.5% of this group or 49.5% of the total employed population.
Next were those employed in government or government-controlled corporations, representing 14.1% of wage and salary workers or 8.9% of the total employed individuals during the period.
In a separate statement, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan emphasized that the government aims to foster “a vibrant and investment-friendly economy” while ensuring the workforce is equipped with skills that meet industry standards.
“[O]ur 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,” Balisacan said. (TCSP)
