Finance Secretary Ralph G. Recto has underscored the continued strength of the Philippine labor market, as the country posted its highest labor force participation rate (LFPR) this year at 65.8%, adding 1.35 million more Filipinos into the workforce.
This brought the total number of Filipinos (15 years and older) participating in the labor force to an all-time high of 52.33 million.
Even with a higher LFP of 1.35 million Filipinos, the country added 1.42 million jobs. As a result, the overall unemployment rate went down further to 3.9% in May, bringing the year-to-date average to just 4.0%—significantly outperforming the government’s 2025 target of 4.8% to 5.1%.
“Ang ibig sabihin po ng lahat ng numerong ito ay patuloy na dumarami ang mga Pilipinong may maayos at disenteng trabaho. Ang pagtaas ng LFPR ay senyales na mas maraming Pilipino ang nakakakita ng oportunidad dito sa bansa. Patunay ang mga ito na gumaganda ang takbo ng ating ekonomiya, at mas maraming pamilya ang may kita at pag-asa,” Secretary Recto said.
“Sisiguraduhin nating mapanatili ang ganitong momentum para mas marami pang Pilipino ang makinabang sa pag-unlad ng ating bansa,” he added.
Notably, youth participation also increased in May, with the LFPR among those aged 15 to 24 rising to 33.6%. This indicates that more young Filipinos—especially fresh graduates—are successfully transitioning from school to gainful employment.
Meanwhile, overall underemployment remained relatively low at 13.1%, highlighting both improvements in the quality of jobs and the continuing need to bridge the gap between workers’ skills and the needs of the industry.
The year-on-year increase in employment was driven by wholesale and retail trade; repair of motor vehicles and motorcycles (489,000); agriculture and forestry (469,000); administrative and support service activities (371,000); accommodation and food service activities (365,000); and other service activities (175,000).
Wage and salary workers continued to make up the largest segment of employed persons at 62.8% in May 2025. Of this group, the majority, or 77.1% were employed in private establishments, while those working in government comprised 15%.
Managerial employment also saw a notable improvement as the number of individuals in managerial positions rose to 1.92 million in May 2025—up by 245,000 from the previous month and by 514,000 year-on-year.
Government interventions to improve the job market for Filipinos
In line with President Ferdinand R. Marcos, Jr.’s directive to expand job opportunities for Filipinos, the government has ramped up its employment generation efforts by forging national and local partnerships that deliver both immediate placements and long-term support, especially for vulnerable sectors.
The Department of Labor and Employment (DOLE) launched the LIFE Assistance Program to support workers and their families affected by labor rights violations. Beneficiaries receive access to TESDA training, scholarships, livelihood grants, and referrals to government support agencies to help them recover and rebuild.
Returning Overseas Filipino Workers (OFWs) are also being supported through the National Reintegration Network (NRN)—a comprehensive assistance system that provides job referrals, health services, crisis support, upskilling programs, and livelihood access.
To prepare Filipinos for emerging, high-value industries, DOLE is advancing workforce readiness through the Digital and Green Skills for Youth in ASEAN initiative. This program aligns training with future-ready sectors such as sustainable construction, empowering young workers to thrive in digital and green economies.
To accelerate job-generating investments, DOLE has strengthened the Investments Facilitation Network (INFA-Net) by issuing a Joint Memorandum Circular with 38 government agencies to fast-track inter-agency approvals and support investor confidence.
Recognizing the critical need for talent in high-growth sectors, the government—through the Semiconductor and Electronics Industry Advisory Council (SEIAC)—is intensifying training in integrated circuit (IC) design, assembly, test, and packaging (ATP). Backed by TESDA and the Commission on Higher Education (CHED), this initiative builds a steady pipeline of skilled professionals for the Philippines’ booming semiconductor and electronics industries.
