Finance Secretary Ralph G. Recto underscored that the continued rise in the number of Filipinos holding formal and stable jobs in the private sector is a clear sign of the Philippine economy’s strong capacity to generate quality and meaningful employment opportunities for its people.
According to the September 2025 Labor Force Survey (LFS), wage and salary workers, or those with stable and formal jobs, continue to make up the largest share (64.1%) or 31.8 million of the country’s total employed individuals of 49.6 million.
Workers in the private sector remain the biggest group among wage and salary earners, reaching 25.0 million or 50.5% of total employment. This was up from the 48.9% share a year earlier and is equivalent to a year-on-year gain of 631,000 jobs.
Meanwhile, wage and salary workers in the government were about 4.6 million, accounting for just 9.3% of the total employed individuals for the said month.
“This increase in wage and salary workers, particularly in private establishments, reflects the growing stability and formality of our labor market. It means more Filipinos are gaining access to consistent income, social protection, and benefits that come with formal employment,” Secretary Recto said.
He added that the continued rise in formal private-sector jobs reflects business confidence despite some controversies. The government has put in place structural reforms in attracting investments, such as the CREATE More Act and the recently signed Investors’ Lease Act, among others, which will sustain the country’s economic momentum.
The latest LFS also showed that the underemployment rate eased to 11.1% or about 5.5 million individuals, compared to 11.9% in the same period last year, indicating an improvement in job quality.
The decline was primarily driven by a decrease in the number of invisibly underemployed workers or those looking for additional or better work, particularly in transportation and storage, and administrative and support services.
“Our economy is creating not just more jobs, but better jobs. We remain committed to sustaining this momentum by ensuring that our fiscal and investment policies continue to attract businesses, generate employment, and uplift the lives of Filipino workers,” he further said.
The country’s unemployment rate continues to be relatively low at 3.8% or equivalent to 2.0 million unemployed individuals. Year-to-date unemployment rate stood at 4.1%, outperforming the government’s target of 4.8%-5.1% for 2025.
The construction sector led job creation, adding 514,000 workers year-on-year in September. The agriculture and fisheries sectors also posted gains, adding around 439,000 workers during the period.
Interventions to improve labor market conditions
The government continues to roll out coordinated efforts to create stable, high-quality jobs and expand opportunities for informal workers and the youth.
The recent passage of the Lifelong Learning Development Framework Act establishes a system for continuous and accessible learning for the workforce.
Along with the CREATE MORE Act, the recently signed Republic Act No. 12252, or the Investors’ Lease Act, encourages long-term investments and generates employment in sectors such as agriculture, tourism, and industry.
To ensure inclusive growth, the Mindanao Development Authority (MinDA) is transforming Technical-Vocational Education and Training (TVET) into a key driver of regional development by aligning skills programs with emerging industries.
Efforts are also focused on upskilling the workforce to meet the demand of evolving digital and AI-driven industries, including promoting higher-value outsourcing segments such as IT, creative, and knowledge process services.
Support for the vulnerable sector
The government is also supporting workers affected by recent weather-related calamities that disrupted livelihoods and jobs across various regions.
The Department of Labor and Employment (DOLE) activated the Tulong Panghanapbuhay sa Ating Disadvantaged/Displaced Workers (TUPAD) program to support typhoon relief operations by providing temporary jobs and daily wages equivalent to the highest minimum rate in Metro Manila.
In response to the recurring extreme weather events, the government is implementing long-term solutions by expanding rural infrastructure, improving digital connectivity, and aligning training programs with emerging industry demands to protect regular as well as freelance or gig workers.
DOF HEARTS Series
This series showcases how the DOF is funding the nation’s HEARTS (H-health, E-education, A-agriculture and environment, R-roads and infrastructure, T-technology, and S– security and social protection) to bring us to Bagong Pilipinas.
