Summary
Highlights
The Philippines Statistics Authority (PSA) announced that the country's unemployment rate remained at 4.4% in December 2025, affecting approximately 2.26 million Filipinos. This is a slight increase of 7,000 persons compared to November 2025. However, a significant highlight is the underemployment rate dropping to 8%—the first single-digit rate since May 2024 (9%). This means a little over 3 million Filipinos are underemployed. Despite the stable unemployment, average productivity hours increased to 41.2 hours per week. The PSA anticipates a potential decrease in unemployment in upcoming months, particularly for January 2026, as issues related to flood control and infrastructure projects become less prevalent.
The PSA explained that the stable unemployment rate is due to a reduction in employment within the construction industry, influenced by a negative GDP growth in infrastructure. This decrease was, however, offset by an increase in employment in sectors like call centers, maintaining a balanced unemployment figure overall.
Unemployment refers to individuals without a job, not self-employed, and not actively participating in the labor force. Underemployment, on the other hand, includes individuals who are employed or self-employed but are seeking additional work or more hours due to insufficient pay or underutilized skills. This can include individuals working two or three jobs to meet their income needs.
With the observed shift in jobs towards virtual opportunities and a decrease in underemployment, authorities aim to lower the unemployment rate further in 2026. Despite the positive outlook, concerns remain regarding potential job losses in the construction sector due to delisted companies, which could impact GDP. While there's no specific government plan announced to mitigate these job losses, other industries like education and health are seeing an increase in employment, suggesting a broader economic shift.