The Philippines' unemployment rate continued its downward trend in December, bringing the full-year average to 3.8 percent—the lowest in 19 years—according to the Philippine Statistics Authority (PSA).
Job quality also showed improvement, with the 2024 full-year underemployment rate at its lowest level since 2005.
At a recent press briefing, National Statistician Dennis Mapa presented results from the PSA’s Labor Force Survey, revealing a slight dip in the unemployment rate to 3.1 percent in December, down from 3.2 percent in November and matching December 2023’s figure.
This equates to 1.63 million unemployed Filipinos in December 2024, slightly lower than the 1.66 million in November but higher than the 1.60 million recorded a year earlier.
Declining unemployment, underemployment
The average unemployment rate for 2024 stood at 3.8 percent, the lowest since 2005.
On average, 1.94 million Filipinos were unemployed in 2024, a drop from 2.19 million in 2023.
While the underemployment rate ticked up slightly to 10.9 percent in December from 10.8 percent in November, it was still an improvement from 11.9 percent in December 2023.
Around 5.48 million Filipinos were underemployed in December, an increase from 5.35 million in November but a decrease from 6.01 million a year prior.
The full-year average underemployment rate for 2024 stood at 11.9 percent, down from 12.3 percent in 2023—the lowest since 2005.
Employment Growth Across Key Sectors
The employment rate edged up to 96.9 percent in December from 96.8 percent in November, remaining unchanged from December 2023.
There were 50.19 million employed Filipinos in December, up from 49.54 million in November but slightly lower than 50.52 million a year earlier.
Industries that saw the most significant job increases in December included:
- Agriculture and forestry (+735,000)
- Construction (+583,000)
- Public administration and defense (+307,000)
- Transportation and storage (+184,000)
Conversely, the largest declines in employment came from:
- Wholesale and retail trade (-391,000)
- Manufacturing (-305,000)
- Other service activities (-288,000)
- Accommodation and food services (-219,000)
Year-on-year, transportation and storage, construction, and administrative support services recorded notable employment growth, while agriculture, manufacturing, and trade experienced declines.
Labor force participation and government response
The labor force participation rate rose to 65.1 percent in December, up from 64.6 percent in November but lower than 66.6 percent in December 2023.
The number of Filipinos in the labor force reached 51.81 million in December, higher than 51.20 million in November but slightly down from 52.13 million a year prior.
The National Economic and Development Authority (NEDA) emphasized the importance of strengthening the labor market to sustain economic growth.
NEDA Secretary Arsenio Balisacan reaffirmed the government’s commitment to enhancing job quality, upskilling workers, and diversifying economic drivers to create a resilient workforce.
“By fostering a dynamic and inclusive labor market and ensuring that economic gains benefit all Filipinos, we can sustain job creation and provide long-term economic security,” Balisacan stated.
To adapt to evolving industry demands, the government is promoting more inclusive work arrangements and intensifying efforts to equip workers with relevant skills.
These initiatives align with the Philippine Development Plan 2023-2028, aiming to build a stronger and future-ready workforce.
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