The Philippine Statistics Authority (PSA) reported an increase in unemployment for January 2025 with the number of 2.16 million of jobless individuals, up from 1.63 million in December 2024.
This increase pushed the unemployment rate to 4.3%, a sharp rise from the previous month’s 3.1%.
According to the PSA, the surge in unemployment is largely attributed to the seasonal nature of holiday-related employment.
Deputy National Statistician Divina Gracia del Prado explained that December typically sees a boost in job opportunities due to increased consumer activity.
These temporary positions often end once the holiday season concludes, leading to a decline in employment figures in January.
In addition to rising unemployment, underemployment remains a pressing concern.
The PSA reported that 6.47 million Filipinos are seeking additional work or longer hours, leading to an underemployment rate of 13.3%.
This indicates that while some individuals have jobs, many are still struggling to secure sufficient income to meet their needs.
Despite these challenges, economic prospects for the Philippines remain optimistic.
The Asian Development Bank (ADB) has maintained its forecast of 6.0% GDP growth for 2024, with an expected acceleration to 6.2% in 2025.
This growth is projected to be fueled by strong domestic demand, aided by lower inflation and declining interest rates.
To support economic expansion and job creation, the Philippine government has approved a record-breaking ₱6.33 trillion budget for 2025.
This represents a 10% increase in government spending, with the aim of driving economic recovery and reducing poverty.
The education sector has been allocated the largest share, receiving ₱1.053 trillion.
Meanwhile the public works ministry with ₱1.034 trillion—both sectors expected to generate employment opportunities.
While the recent spike in unemployment highlights the economy’s seasonal fluctuations.
The ongoing fiscal policies and economic investments are poised to sustain growth and provide new job opportunities for Filipinos in the long run.
The increase in unemployment is mainly due to the end of seasonal jobs that were created for the holiday season. Many temporary positions in retail, hospitality, and services concluded, leading to a decline in employment figures.
According to the Philippine Statistics Authority (PSA), the number of jobless individuals rose to 2.16 million in January 2025, up from 1.63 million in December 2024.
The underemployment rate for January 2025 was recorded at 13.3%, with 6.47 million Filipinos seeking additional work or longer hours. This metric is important as it highlights the number of individuals who, despite being employed, are not earning enough to meet their financial needs.
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