By Adrian H. Halili, Reporter
PHILIPPINE unemployment eased to 3.7% in June, as more Filipinos found job opportunities during the month, according to the local statistics agency.
However, labor experts cautioned that structural challenges remain in the country’s labor market, particularly on job quality and sustainability.
The June unemployment rate was lower than 3.9% in May, but higher than 3.1% a year ago, the Philippine Statistics Authority (PSA) said.
This translates to 1.95 million jobless Filipinos, down from 2.03 million in April. The number of unemployed rose from 1.62 million a year earlier. The average unemployment rate for the first half stood at 4%, slightly higher than 3.9% a year ago.
Deputy National Statistician Divina Gracia L. Del Prado said the month-on-month improvement was due to a drop in discouraged workers — those who had stopped looking for jobs, believing none were available.
However, she noted that the year-on-year rise in the unemployment rate was due to a larger number of Filipinos entering the job market, particularly new graduates, she told a news briefing.
“Because June is also graduation [season], there are many people who are actually entering our labor market,” she said. She added that many had cited active job searching or waiting to be rehired as the top reasons for being unemployed.
Underemployment — defined as workers seeking additional hours or better-paying jobs — dropped to 11.4% in June from 13.1% in May, translating to 5.76 million underemployed Filipinos. However, this figure was still slightly lower than the 6.08 million underemployed in June 2024, when the rate was 12.1%.
For the first half, the average underemployment rate stood at 12.7%, slightly higher than the 12.3% average from a year earlier.
Despite the drop in underemployment for the month, some labor groups warned against interpreting the decline as an improvement in job quality.
“Fewer people saying they’re underemployed doesn’t mean jobs are getting better,” Jose Enrique A. Africa, executive director of IBON Foundation, said in a Viber message. “It’s more likely that workers just have fewer and fewer options in a deteriorating labor market.”
He added that job quality in the Philippines continues to suffer due to low wages, lack of job security and weak enforcement of labor rights.
The country’s employment rate rose to 96.3% in June from 96.1% in May. However, this was lower than the 96.9% employment rate a year earlier.
The number of employed Filipinos increased to 50.47 million in June from 50.29 million in May, and from 50.28 million in June last year. For the first half, the employment rate averaged 96.1%, slightly lower than 96.2% a year ago.
Ms. Del Prado attributed the year-on-year dip in employment to the sharp decline in jobs in the construction sector, which lost 692,000 jobs, and the arts, entertainment and recreation sector, particularly in gambling and betting, where jobs fell by 218,000.
Several bills aiming to regulate or ban online gambling are pending in Congress amid concerns about its social impact.
Meanwhile, sectors that added the most jobs included fishing and aquaculture (+512,000), wholesale and retail trade (+375,000), financial and insurance activities (+327,000), transportation and storage (+211,000) and human health and social work (+179,000).
Services remained the largest employer, accounting for 61.4% of the employed population in June, followed by agriculture (20.9%) and industry (17.7%).
Wage and salary workers made up 63% of the employed population. Self-employed people without paid employees accounted for 27.1%, unpaid family workers for 8%, and employers in family-operated businesses for 1.9%.
YOUTH JOBLESSNESSThe average number of hours worked per week rose to 40.5 in June from 39.8 in May, but was still slightly lower than 40.9 hours in June 2024.
Youth unemployment also increased to 9.4% in June, from 8.6% a year earlier. About 1.62 million Filipinos aged 15–24 were jobless in June.
Economic Planning Secretary Arsenio M. Balisacan cited the need for targeted interventions, particularly to help young people transition from education to employment.
“We remain cautious due to the slight uptick in unemployment, particularly among the youth,” he said in a statement. “We are committed to enhancing workforce competitiveness by aligning education and training systems with industry needs.”
Labor groups called for stronger government action to address both the quantity and quality of jobs.
Josua T. Mata, secretary-general of Sentro ng mga Nagkakaisa at Progresibong Manggagawa, said the economy is not generating enough decent jobs to match the growing labor force.
“Even the jobs that are being created leave much to be desired,” he said in an e-mailed reply to questions. “Many are in sectors known for short-term, precarious and contractual work — as reflected in the decline in average hours worked.”
Federation of Free Workers (FFW) President Jose Sonny G. Matula in a Viber message said structural weaknesses in key sectors like construction, manufacturing and agriculture are dragging down overall job quality.
He also raised concerns over the potential impact of a 19% tariff imposed by the US on Philippine exports, effective Aug. 7, which could hurt industries like electronics and garments.
Maria Ella Calaor-Oplas, a De La Salle University professor, cited improving employment opportunities for full-time workers as a positive sign. “We are in a better place this year, as employment opportunities were mostly directed to part-timers last year,” she said in a Facebook Messenger chat.
Benjamin Velasco, a labor professor at the University of the Philippines, said the agriculture sector could face additional strain from possible rains and flooding in the coming months.
He cited the need for structural reforms tied to industrial and climate-responsive public employment programs, especially with holiday-driven demand potentially boosting manufacturing in the second half.
Labor experts urged the government to adopt bolder policies to improve job creation and quality. These include livelihood support, wage increases, industrial policy and green infrastructure investments.
“Waiting for the market to fix itself is not a strategy,” Mr. Mata said. “The government needs to step in urgently.”