Philippines' labour market in February 2025: More jobs, lower underemployment

Latest data shows more Filipinos found work in February 2025 compared to January 2025, though year-on-year challenges remain.

The Philippines’ job market in February 2025 showed a mix of good news and ongoing challenges. While the overall employment rate dipped slightly compared to the same time last year, more Filipinos were working compared to the month before.

According to the Labour Force Survey released by the Philippine Statistics Authority (PSA), the country’s employment rate was at 96.2% in February 2025. This is slightly lower than 96.5% in February 2024, but an improvement from 95.7% in January 2025.

In total, 49.15mn Filipinos had jobs in February 2025 which is an increase from 48.49mn in January 2025, and slightly higher than 48.95mn a year ago.

Labour force participation and employment trends

The labour force participation rate (LFPR) which includes all working-age Filipinos either employed or actively looking for work, was 64.5% in February 2025. This is a bit lower than 64.8% a year ago, but still higher than 63.9% in January 2024. This translates to 51.09mn Filipinos aged 15 and over who were either employed or unemployed which is an increase from 50.75mn in February 2024 and 50.65mn in January 2025.

Working hours and job quality

Employed Filipinos worked an average of 41.1 hours per week in February 2025, an increase from 40.1 hours in February 2024 and 40.4 hours in January 2024.

Notably, about 73,000 employed individuals or 0.15% of total employed persons worked for exactly one hour in February 2025. This is slightly higher than 52,000 (0.11%) in February 2024 and 59,000 (0.12%) in January 2025.

Underemployment rate sees encouraging decline

The underemployment rate fell to 10.1% in February 2025. This shows a drop from 12.4% a year ago and 13.3% in January 2025.

In terms of size, out of the 49.15mn employed individuals in February 2025, around 4.96mn said they wanted to work more hours either by taking on extra jobs, extending hours in their current roles, or finding new jobs with longer hours.

Employment by industry

The services sector remained the top employer in the Philippines as of February 2025, accounting for 61.6% of all employed individuals. This was followed by the agriculture sector at 20.1% and the industry sector at 18.3%.

Top five sub-sectors recorded notable employment growth:

• Accommodation and food service activities: +377,000
• Fishing and aquaculture: +365,000
• Public administration and defense (including social security): +330,000
• Construction: +258,000
• Other service activities: +232,000

However, some industries saw significant declines in employment:

• Agriculture and forestry: -949,000
• Administrative and support service activities: -201,000
• Transportation and storage: -158,000
• Wholesale and retail trade: -77,000
• Professional, scientific, and technical activities: -68,000

Month-on-month shifts

Biggest month-on-month employment gains in February 2025 were seen in:

• Wholesale and retail trade: +620,000
• Construction: +434,000
• Manufacturing: +225,000
• Public administration and defense: +191,000
• Fishing and aquaculture: +147,000

On the other hand, the sectors with the most significant month-on-month drops included:

• Agriculture and forestry: -520,000
• Administrative and support services: -308,000
• Transportation and storage: -176,000
• Professional, scientific, and technical activities: -90,000
• Information and communication: -89,000

Worker profile: Majority are in wage or salary roles

Wage and salary workers made up the largest portion of the employed population in February 2025, comprising 63.2% of total employment. This group was followed by:

• Self-employed individuals without paid employees: 28.2%
• Unpaid family workers: 6.6%
• Employers in own family-run farms or businesses: 2.0%

Among wage and salary earners, most were working in private establishments with 77.3% of all wage workers or 48.8% of all employed persons. Those in government or government-controlled corporations followed, making up 14.7% of wage workers or 9.3% of all employed persons.

Youth labour participation remains a concern

The LFPR among Filipino youth fell to 31.1% in February 2025, decrease from 33.8% a year ago and slightly lower than 31.8% in January 2025. The youth employment rate also declined to 89.6%, compared to 91.4% in February 2024.

READ MORE: Malaysia’s labour market shows steady growth: 16.73mn employed as of February 2025

Lead image / Philippine Statistics Authority (PSA) Press Release